Proposed Rules Title 19

TITLE 19. EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

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

Subchapter L. INTENSIVE SUMMER PROGRAM GRANTS

19 TAC §§4.210 - 4.214

The Texas Higher Education Coordinating Board proposes new §§4.210 - 4.214, concerning Intensive Summer Program Grants. Specifically, these new sections will establish a pilot program to award grants to participating institutions to provide intensive academic instruction during the summer semester to promote college and workforce readiness to students identified as being at risk of dropping out of school or college.

Dr. Glenda Barron, Assistant Commissioner for Student Advancement and Private Institution Oversight, has determined that for each year of the first five years the 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 new sections are in effect, the public benefit anticipated as a result of administering the sections will be the improvement of college readiness skills and the reduction of college drop out rate for at risk students enrolled in Intensive Summer Programs in institutions of higher education. There is no effect on small businesses. There is no anticipated economic cost 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 Glenda Barron, Assistant Commissioner of Student Advancement and Private Institution Oversight, 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, §29.098, which provides the Coordinating Board with the authority to establish, by rule, a pilot program to award grants to participating campuses to provide intensive academic instruction during the summer semester.

The new sections affect the Texas Education Code, §29.098.

§4.210.Purpose and Authority.

In accordance with the Texas Education Code, §29.098, the purpose of the Intensive Summer Program is to create pilot programs in which institutions of higher education provide intensive academic instruction for students who are identified as being at risk of dropping out of school or college. The areas for intensive instruction are English/language arts, mathematics, and science. The Intensive Summer Programs pilot will identify best practices and strategies that work to help prepare students for college and work force readiness.

§4.211.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) Institution of higher education or institution--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).

(3) Intensive Summer Programs--A pilot program authorized by the Texas Legislature in the Texas Education Code, §29.098 under which participating institutions of higher education receive grants to provide intensive academic instruction in English/language arts, mathematics, and science to facilitate the student's transition from high school to a postsecondary institution.

(4) Applicant--An institution submitting a proposal in response to the Board's request.

§4.212.Eligible Students.

(a) A grant may be awarded to an institution of higher education for an Intensive Summer Program only if at least 50 percent of the students served in the program:

(1) have a score on the Scholastic Assessment Test (SAT) or American College Test (ACT) that is equal to a score less than the national mean score;

(2) have been awarded a grant under the federal Pell grant program;

(3) are at least 20 years of age on the date the student initially enrolls in the institution of higher education; or

(4) have enrolled or will initially enroll as a part-time student.

(b) The remaining 50 percent of students served by the program may include at-risk students as determined by:

(1) the criteria described in subsection (a) of this section;

(2) the Texas Success Initiative criteria as set forth in §§4.54, 4.57, and 4.59 of this title (relating to Exemptions/Exceptions; Minimum Passing Standards; and Determination of Readiness to Perform Freshman-Level Academic Coursework); or

(3) other indicators of college or workforce readiness or means of identifying a student as being at risk of dropping out of school or college as determined by the institution.

§4.213.Eligible Institutions.

To be eligible to participate in the pilot program, applicants shall:

(1) be a Texas public institution of higher education as defined in the Texas Education Code, §61.003(8); and

(2) meet all deadlines, requirements, and guidelines outlined in the Request for Proposals.

§4.214.Grant Administration.

(a) Notification. The Board will notify each applicant in writing of its selection or non-selection for participation in the pilot program.

(b) Program Evaluation. The Board will establish specific evaluation procedures and requirements for the pilot program in the Request for Proposals.

(c) Program funding. The Board will distribute funds for the Intensive Summer Program pilots to eligible public institutions of higher education selected by an evaluation process in the Request for Proposals and based on the following factors:

(1) the availability of funds which is contingent on appropriations made by the legislature for that purpose;

(2) funding limitations as set forth in the Texas Education Code, §29.098, that a grant awarded for Intensive Summer Programs may not exceed $750 for each participating student and must be matched by not less than $250 for each participating student in other federal, state, or local funds, including private donations; and

(3) uses of funding as set forth in the Texas Education Code, §29.098, that to the extent practicable, an institution of higher education shall create work-study opportunities for students enrolled in teacher preparation programs to assist in providing instruction in Intensive Summer Programs.

(4) The Board may revoke an institution's participation in the pilot program based on the following factors:

(A) noncompliance with requirements and assurances outlined in the Request for Proposals and/or the provisions of this section;

(B) lack of program success as evidenced by progress reports and program data;

(D) failure to provide accurate, timely, and complete information as required by the Board to evaluate the effectiveness of the pilot program; and

(E) refusal to serve participants in Intensive Summer Programs.

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 February 13, 2008.

TRD-200800849

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Chapter 21. STUDENT SERVICES

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

19 TAC §§21.21 - 21.30

The Texas Higher Education Coordinating Board proposes new §§21.21 - 21.30, concerning Determination of Resident Status and Waiver Programs for Certain Nonresident Persons. Specifically, §§21.727 - 21.736 are being repealed and the sections are herein proposed as §§21.21 - 21.30.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that for each year of the first five years the new sections 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 new sections are in effect, the public benefit anticipated as a result of administering the sections will be consistent cross referencing to residency statutes. 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 new sections are proposed 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.

The new sections affect Texas Education Code, §§54.0501 - 54.075.

§21.21.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.

§21.22.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 to be completed by a person and used by an institution to determine if the person is a Texas resident. For enrollments prior to the 2008 - 2009 academic year, institutions may use the core questions developed and distributed by the Board in 1999 or later, including the core questions included in the Texas Common Application, or the core questions set forth in current Board rules or posted on the Texas Higher Education Coordinating Board web site. The core questions to be used for enrollments for and after the 2008 - 2009 academic year shall be the core questions in the Texas Common Application or core questions posted on the Board web site.

(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 by USCIS showing that his or her I-485 has been reviewed and has not been rejected.

(7) Established a domicile in Texas--A person has established a domicile in Texas if he or she has met the conditions shown in §21.24(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) Financial need--An economic situation that exists for a student when the cost of attendance at an institution of higher education is greater than the resources the family has available for paying for college. In determining a student's financial need an institution must compare the financial resources available to the student to the institution's cost of attendance.

(10) Gainful employment--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 purposes of establishing residency, as may a person whose primary support is public assistance.

(11) 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).

(12) 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).

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

(14) 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 §21.24(e) of this title (relating to Determination of Resident Status).

(15) 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.

(16) 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 §21.29 of this title (relating to Waiver Programs for Certain Nonresident Persons).

(17) Nontraditional secondary education--A course of study at the secondary school level in a nonaccredited private school setting, including a home school.

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

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

(20) Private high school--A private or parochial school in Texas.

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

(22) Regular semester--A fall or spring semester, typically consisting of 16 weeks.

(23) Residence--A person's home or other dwelling place.

(24) Residence Determination Official--The primary individual at each institution who is responsible for the accurate application of state statutes and rules to individual student cases.

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

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

(27) 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.

§21.23.Effective Date of this Subchapter.

Each institution shall apply these rules beginning with enrollments for the Fall Semester, 2006.

§21.24.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, as an alternative to high school graduation, received the equivalent of a high school diploma in this state, including the successful completion of a nontraditional secondary education; 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 §21.22(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 §21.24(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, or is married to a person who has established a domicile in 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.

§21.25.Information Required to Initially Establish Resident Status.

(a) To initially establish resident status under §21.24 of this title (relating to Determination of Resident Status):

(1) a person who qualifies for residency under §21.24(a)(1) of this title shall provide the institution with:

(A) a completed set of Core Residency Questions; or

(B) a copy of supporting documentation along with a statement of the dates and length of time the person has resided in this state, as relevant to establish resident status under this subchapter and a statement by the person that the person's presence in this state for that period was for the purpose of establishing and maintaining a domicile in Texas.

(2) a person who qualifies for residency under §21.24(a)(2) or (3) of this title shall provide the institution with a completed set of Core Residency Questions.

(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 included in Revised Chart III, which is incorporated into this subchapter for all purposes. In addition, the institution may request documents that support the information the student may provide in the core questions, Section H.

Figure: 19 TAC §21.25(b)

(c) If a person who establishes resident status under §21.24(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 provided in Chart II and incorporated into this subchapter for all purposes.

Figure: 19 TAC §21.25(c)

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

§21.26.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 previous 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 following fall semester. If an institution acquires documentation that a person is a continuing student who was classified as a resident at the previous institution, no additional documentation is required. The person is not required to complete a new set of Core Questions.

(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 §21.25 of this title (relating to Information Required to Establish Resident Status), and satisfy all the applicable requirements to establish resident.

§21.27.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 Revised Chart III, which is incorporated into §21.25(b) of this title (relating to Information Required to Initially Establish Resident Status).

(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.

§21.28.Errors in Classification.

(a) If an institution erroneously permits a person to pay resident tuition and the person is not entitled or permitted to pay resident tuition under this subchapter, the institution shall charge nonresident tuition to the person beginning with the semester following the date that the institution discovers the error.

(b) Not later than the first day of the following semester, the institution may notify the person that he or she must pay the difference between resident and nonresident tuition for each previous semester in which the student should not have paid resident tuition, if:

(1) the person failed to provide to the institution, in a timely manner after the information becomes available or on request by the institution, any information that the person reasonably should know would be relevant to an accurate classification by the institution under this subchapter information; or

(2) the person provided false information to the institution that the person reasonably should know could lead to an erroneous classification by the institution under this subchapter.

(c) If the institution provides notice under subsection (b) of this section, the person shall pay the applicable amount to the institution not later than the 30th day after the date the person is notified of the person's liability for the amount owed. After receiving the notice and until the amount is paid in full, the person is not entitled to receive from the institution a certificate or diploma, if not yet awarded on the date of the notice, or official transcript that is based at least partially on or includes credit for courses taken while the person was erroneously classified as a resident of this state.

(d) If an institution erroneously classified a person as a resident of this state under this subchapter and the person is entitled or permitted to pay resident tuition under this subchapter, that person is not liable for the difference between resident and nonresident tuition under this section.

(e) If an institution erroneously classifies a person as a nonresident and the person is a resident under this subchapter, the institution shall refund the difference in resident and nonresident tuition for each semester in which the student was erroneously classified and paid the nonresident tuition rate.

§21.29.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.

(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.

(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. 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. 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.

(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 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.

§21.30.Residence Determination Official.

(a) Each institution shall designate an individual that is employed by the institution as a Residence Determination Official.

(b) The Residence Determination Official shall:

(1) be knowledgeable of the requirements set out in these rules and the applicable statutes; and

(2) attend at least one training or workshop provided by the Coordinating Board regarding these rules and the applicable statutes in each state fiscal year.

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

Filed with the Office of the Secretary of State on February 13, 2008.

TRD-200800850

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter C. HINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM

19 TAC §§21.54, 21.55, 21.61, 21.62, 21.64

The Texas Higher Education Coordinating Board proposes amendments to §§21.54, 21.55, 21.61, 21.62, and 21.64, concerning the Hinson-Hazlewood College Student Loan Program. Specifically, the proposed amendment to §21.54(d) will reflect current procedures for institutional reporting of changes in borrower enrollment status. Rather than providing printed rosters of students to institutions for reporting of enrollment changes, the Board subscribes to a national data clearinghouse. Changes in enrollment data reported by participating institutions are processed electronically. Institutions that do not participate in the clearinghouse report enrollment changes directly to the Board. The proposed amendment to §21.55(a)(6) will correct the statement regarding the borrower's provision of two references. The employment status of a person named as a reference is not relevant to that person's knowledge of the borrower's current address throughout the life of the loan. The proposed amendment to §21.61(d) will remove a requirement relating to negotiation of warrants that is no longer relevant. All loan funds are disbursed to institutions by Electronic Funds Transfer (EFT); loan warrants are no longer produced. The proposed amendment to §21.62(a)(3)(B) will eliminate a provision that was part of the Revenue Bond covenants and is no longer relevant because these bonds have been retired. The proposed amendment to §21.62(f) will remove language that is not applicable within the HELMS software system. The order of payment application is addressed later in this section. The proposed amendment to §21.64(c) will provide a more accurate description of the current process for the Texas Higher Education Coordinating Board's communication of borrower account status to institutions for the purpose of placing and releasing bars on student records and re-registration.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, 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 amended rules.

Ms. Lois 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 amended sections will be to improve and increase access to higher education in the state of Texas. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the amendments 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) 427-6195, 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, §§52.31 - 52.41, which provides the Coordinating Board with the authority to establish procedures to administer the Hinson-Hazlewood College Student Loan Program and Texas Education Code, §52.31, which provides the Coordinating Board with the authority to adopt rules to effectuate the provisions of Texas Education Code, Chapter 52.

The amendments affect Texas Education Code, §§52.31 - 52.41.

§21.54.Eligibility of Institutions.

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

(d) Each eligible institution shall promptly report student borrower changes in enrollment status to the Board directly or to the National Student Clearinghouse. [ The Board shall provide a roster of its borrowers to each eligible institution prior to the end of each enrollment period. Within a reasonable period after the institution receives the roster, the Office of the Registrar shall identify all records of each student, and the institution shall supply information on each student borrower to the Board on a form prescribed by the Commissioner. ]

§21.55.Eligibility of Students.

(a) Subject to the requirement in subsection (b) of this provision, the Commissioner may authorize, or cause to be authorized, Hinson-Hazlewood College Student Loans to students at any eligible institution which certifies that the student meets program qualifications, if the student:

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

(6) has provided information on two references who live at separate addresses[ ~~, are gainfully employed,~~ ] and are expected to know the student's current address at all times throughout the life of the loan;

(7) - (10) (No change.)

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

§21.61.Disbursements to Students.

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

~~[(d) All loan warrants must be negotiated on or before the 120th day after the loan warrant issue date.]~~

§21.62.Repayment of Loans.

(a) Period of loan repayment.

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

(3) CAL.

(A) (No change)

~~[(B) Current interest on loans made from the revenue bond fund is due and payable no less frequently than quarterly for the life of the loan.]~~

(B) [ ~~(C)~~ ] The repayment period shall begin no earlier than six months after the date on which the student ceases to carry, at an eligible institution, at least one half the normal full-time course load as determined by the institution.

(4) - (5) (No change)

(b) - (e) (No change.)

(f) Late charges. A charge of five percent (5%) of the scheduled monthly payment or five dollars ($5.00), whichever is less, shall be assessed if the past due amount is not received within 20 days of the scheduled due date. These charges shall be collected for late payment of all sums due and payable under the Hinson-Hazlewood Loan Program [ ~~and shall be collected out of the first payments made in excess of interest charges then due~~].

(g) - (h) (No change.)

§21.64.Enforcement of Collection.

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

(c) Bar on Student Records and Re-registration. The Coordinating Board shall make available to each institution a report of Hinson-Hazlewood borrowers who attended the institution and are delinquent in the repayment of one or more loan accounts with the Board. The institution shall place a hold on the students' records and registration for classes. The Board's report shall also identify borrowers who have corrected the delinquent status of their accounts in order that an [ ~~All records of each student who is a borrower under this Subchapter shall be so identified in the Office of the Registrar at each eligible institution. An~~ ] official certified copy of such records may be released, and/or the student may re-register in the institution [ ~~only if the Hinson-Hazlewood College Student Loan Program officer at the institution certifies to the registrar that the borrower's account is in good condition~~ ]. Exceptions to this section must be approved by the Commissioner in advance of release of an official certified copy of the records or re-registration.

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 February 13, 2008.

TRD-200800852

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter G. TEACH FOR TEXAS LOAN REPAYMENT ASSISTANCE PROGRAM

19 TAC §21.171

The Texas Higher Education Coordinating Board proposes an amendment to §21.171, concerning the Teach for Texas Loan Repayment Assistance Program. Specifically, the proposed amendment to §21.171(a) will correct the reference to the statute authorizing the program. Currently rules cite the statute that authorized another loan repayment program for teachers which has not been funded.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that for each year of the first five years the amendment is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the amended rule.

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 amended section will be to improve and increase access to higher education in the state of Texas. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the amendment as proposed. There is no impact on local employment.

The amendment is proposed under the Texas Education Code, §56.352, which authorizes the Coordinating Board to adopt rules to administer the program.

The amendment affects the Texas Education Code, §§56.351 - 56.355.

§21.171.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter O, Teach for Texas Loan Repayment Assistance Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §56.352 [ ~~§61.702~~ ].

(b) (No change.)

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

Filed with the Office of the Secretary of State on February 13, 2008.

TRD-200800853

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter K. THE GOOD NEIGHBOR SCHOLARSHIP PROGRAM

19 TAC §21.282, §21.284

The Texas Higher Education Coordinating Board proposes amendments to §21.282 and §21.284, concerning the Good Neighbor Scholarship Program.

Specifically, the proposed amendment to §21.282(6) aligns the definition of "Scholastically qualified" with the language in statute which states the student must meet the institution's basic academic requirements; the reference to "progress towards a degree" has been removed. New §21.284(6) adds language that requires the institution to have a statement on file verifying that the student has registered with the selective service or is exempt from registration under federal law as required in Texas Education Code §51.9095. New §21.284(7) adds the provision allowing an eligible student who is awarded a scholarship to transfer his or her award to another institution if that institution agrees to waive the tuition.

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 clarification of program rules. 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.

The amendments are proposed under the Texas Education Code, §54.207, which provides the Coordinating Board with the authority to formulate and prescribe a plan governing the admission and distribution of all applicants desiring to qualify under the provisions of this section.

The amendments affect Texas Education Code, §54.207.

§21.282.Definitions.

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

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

(6) Scholastically qualified--meets the basic admissions requirements of the nominating institution [ ~~and maintains satisfactory progress toward a degree~~ ].

§21.284.Eligible Students.

To be eligible for a Good Neighbor Scholarship a person must:

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

(4) not be a member of the Communist Party; [ ~~and~~ ]

(5) be recommended for a scholarship by an eligible institution ; [ . ]

(6) have a statement on file with his or her institution that indicates the student is registered with the Selective Service System as required by federal law or is exempt from selective service registration under federal law; and

(7) be enrolled in an eligible institution willing to waive the person's tuition.

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 February 13, 2008.

TRD-200800856

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter T. MATCHING FUND EMPLOYMENT PROGRAM FOR PROFESSIONAL NURSING STUDENTS

19 TAC §§21.620 - 21.636

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

The Texas Higher Education Coordinating Board proposes the repeal of §§21.620 - 21.636, concerning the Matching Fund Employment Program for Professional Nursing Students. Specifically, the repeal will delete current Chapter 21, Subchapter T, concerning the Matching Fund Employment Program for Professional Nursing Students, from the Board rules and all sections within it. The Coordinating Board's Advisory Committee for Professional Nursing Financial Aid Programs has determined that funds should be directed to scholarship and loan repayment programs and not to matching fund programs.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that there will not be any fiscal implications to state or local government as a result of the repeal of the sections.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, the public benefit will be that confusion from having rules for programs that are not operational will be eliminated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. There is no impact on local employment.

The repeal is proposed under the Texas Education Code, §61.653, which authorizes the Coordinating Board to establish and administer a matching fund program for professional nursing students.

The repeal affects the Texas Education Code, Chapter 61, Subchapter L, §§61.651, 61.653, and 61.655 - 61.658.

§21.620.Authority and Purpose.

§21.621.Definitions.

§21.622.Advisory Committee.

§21.623.Eligible Institution.

§21.624.Eligible Student.

§21.625.Eligible Nurse.

§21.626.Eligible Employer.

§21.627.Dissemination of Information.

§21.628.Sources of Funding.

§21.629.Allocation of State Funds among Eligible Institutions.

§21.630.Matching Fund Employment Program Awards.

§21.631.The Application Process.

§21.632.Disbursements to Students.

§21.633.The Employment Program Contract.

§21.634.Grievance Procedures.

§21.635.Noncompliance.

§21.636.Program Review Requirements.

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

Filed with the Office of the Secretary of State on February 13, 2008.

TRD-200800854

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter U. MATCHING FUND EMPLOYMENT PROGRAM FOR VOCATIONAL NURSING STUDENTS

19 TAC §§21.650 - 21.666

The Texas Higher Education Coordinating Board proposes the repeal of §§21.650 - 21.666, concerning the Matching Fund Employment Program for Vocational Nursing Students.

Specifically, the repeal will delete current Subchapter U, Chapter 21 of Board rules, concerning the Matching Fund Employment Program for Vocational Nursing Students, and all sections within it. The Coordinating Board's Advisory Committee for Vocational Nursing Financial Aid Programs has determined that funds should be directed to scholarship and loan repayment programs and not to matching fund programs.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that there will be no fiscal implications to state or local government as a result of the repeals.

Ms. Hollis has also determined that for each year of the first five years that the repeals are in effect, the public benefit will be that confusion from having rules for programs that are not operational will be eliminated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals 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 repeals are proposed under the Texas Education Code, §61.653, which authorizes the Coordinating Board to establish and administer a matching fund program for vocational nursing students.

The repeals affect the Texas Education Code, Chapter 61, Subchapter L, §§61.651, 61.653, and 61.655 - 61.658.

§21.650.Authority and Purpose.

§21.651.Definitions.

§21.652.Advisory Committee.

§21.653.Eligible Institution.

§21.654.Eligible Student.

§21.655.Eligible Nurse.

§21.656.Eligible Employer.

§21.657.Dissemination of Information.

§21.658.Sources of Funding.

§21.659.Allocation of State Funds Among Eligible Institutions.

§21.660.Matching Fund Employment Program Awards.

§21.661.The Application Process.

§21.662.Disbursements to Students.

§21.663.The Employment Program Contract.

§21.664.Grievance Procedures.

§21.665.Noncompliance.

§21.666.Program Review Requirements.

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

Filed with the Office of the Secretary of State on February 13, 2008.

TRD-200800855

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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 - 21.736

The Texas Higher Education Coordinating Board proposes the repeal of §§21.727 - 21.736, concerning Determination of Resident Status and Waiver Programs for Certain Nonresident Persons. Specifically, this repeal will delete current Chapter 21, Subchapter X, concerning Determination of Resident Status and Waiver Programs for Certain Nonresident Persons, and all sections within it. The rules for determining residency and all sections within it will be re-adopted as Chapter 21, Subchapter B, §§21.21 - 21.30, the subchapter in which residency rules were housed prior to fall 2006.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined there will be no fiscal implications to state or local government as a result of the repeal of the sections.

Ms. Hollis has also determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of administering the repeal will be consistent cross-references to residency in old and new Coordinating Board documents. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal 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) 427-6165, lois.hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeal is proposed 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.

The repeal affects Texas Education Code, §§54.0501 - 54.075.

§21.727.Authority and Purpose.

§21.728.Definitions.

§21.729.Effective Date of this Subchapter.

§21.730.Determination of Resident Status.

§21.731.Information Required to Initially Establish Resident Status.

§21.732.Continuing Resident Status.

§21.733.Reclassification Based on Additional or Changed Information.

§21.734.Errors in Classification.

§21.735.Waiver Programs for Certain Nonresident Persons.

§21.736.Residence Determination Official.

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 February 13, 2008.

TRD-200800851

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter CC. EARLY HIGH SCHOOL GRADUATION SCHOLARSHIP PROGRAM

19 TAC §§21.951, 21.953, 21.954

The Texas Higher Education Coordinating Board proposes amendments to §§21.951, 21.953, and 21.954, concerning the Early High School Graduation Scholarship Program.

Specifically, the amendment to §21.951(6) updates the citation and title for Chapter 21, Subchapter B, which deals with residency. The amendment to the introductory paragraph of §21.953(a) indicates the provisions of that paragraph only apply to students graduating between September 1, 2005, and August 31, 2007. This amendment was proposed in the June 15, 2007, issue of the Texas Register (32 TexReg 3439) and the Board approved the amendment at its July 2007 Board meeting. However, the amendment was inadvertently not filed with the Texas Register on final adoption. Amendments to §21.953(a)(2) and (3), (b)(4) and (5), and (c)(4) and (5), reflect state selective service registration requirements (Texas Education Code §51.9095) for receiving state aid. The amendment to §21.954(d) clarifies the starting deadline for submitting applications. Amendments to §21.954(g) clarify that, in order to receive an award, applicants for the exemption who graduated prior to June 15, 2007, must be residents of Texas and that applicants who graduate on or after that date must be U.S. citizens or otherwise lawfully be in the United States.

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 an easier understanding of program requirements. 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.

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, §§56.201 - 56.210.

The 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) - (5) (No change.)

(6) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B [ X ] of this title (relating to Determination of [ ~~Determining~~ ] Residence Status and Waiver Programs for Certain Nonresident Persons). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

§21.953.Eligible Students.

(a) To receive an award through the Early High School Graduation Scholarship Program, a student who graduated from high school before September 1, 2005 but prior to September 1, 2007 must:

(1) (No change.)

(2) have completed the requirements for a high school diploma in not more than thirty-six consecutive months having completed all years of high school in Texas ; and [ . ]

(3) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from selective service registration under federal law.

(b) To receive an award through the Early High School Graduation Scholarship Program, a student who graduated from high school on or after September 1, 2005 but prior to June 15, 2007, must:

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

(4) have graduated:

(A) (No change.)

(B) in not more than 45 consecutive months, if the student graduated with at least 30 hours of college credit ; and [ . ]

(5) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from selective service registration under federal law.

(c) To receive an award through the Early High School Graduation Scholarship Program, a student who graduated from high school on or after June 15, 2007, must:

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

(4) have graduated from a public high school in Texas:

(A) (No change.)

(B) in not more than 46 consecutive months, if the student graduated with at least 30 hours of college credit ; and [ . ]

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

§21.954.The Application and Awarding Process.

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

(d) High school counselors are to send the completed and signed applications certified by the principal to the Board for processing. Applications should not be sent to the Board more than 30 days prior to a student's high school graduation date.

(e) - (f) (No change.)

(g) If the student graduated from high school prior to June 15, 2007, institutions [ ~~Institutions~~ ] must confirm that the student is a resident of Texas before they can grant a scholarship through the program outlined in this subchapter. If the student graduated from high school on or after June 15, 2007, institutions must confirm that the student is a citizen of the United States or otherwise lawfully authorized to be present in the United States before they can grant a scholarship through the program outlined in this subchapter.

(h) - (i) (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 February 13, 2008.

TRD-200800857

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter II. EDUCATIONAL AIDE EXEMPTION PROGRAM

19 TAC §§21.1081, 21.1083, 21.1084, 21.1088

The Texas Higher Education Coordinating Board proposes amendments to §§21.1081, 21.1083, 21.1084, and 21.1088, concerning the Educational Aide Exemption Program.

Specifically, the amendment to §21.1081(8) updates the citation and title for Board rules dealing with residency. Amendments to §21.1083(7) and (8) reflect state selective service registration requirements (Texas Education Code §51.9095) for receiving state aid. Amendments to §21.1084 include the addition of subsection (d), which requires students whose financial need is based on adjusted gross income to follow up with prior year income verification if their initial eligibility was based on prior prior-year data. If the verified income does not confirm the student's eligibility, the student will be required to repay the award to the program. Section 21.1084(d) is relettered as §21.1084(e) accordingly. The amendment to §21.1088 adds §21.1088(c) and clarifies that students who receive an exemption through this title while completing their bachelor's degree may not be required to participate in any field experience or internship consisting of student teaching to receive a teaching certificate (as indicated in Texas Education Code §21.050(c)).

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 an easier understanding of program requirements. 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.

The amendments are proposed under the Texas Education Code, §54.214, which provides the Coordinating Board with the authority to adopt rules to implement these sections.

The amendments affect Texas Education Code, §54.214.

§21.1081.Definitions.

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

(1) - (7) (No change.)

(8) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B [ ~~§§21.727 - 21.736~~ ] of this title (relating to Determination of Residence Status and Waiver Programs for Certain Nonresident Persons). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

§21.1083.Eligible Students.

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

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

(6) meet the academic progress standards of the institution; [ ~~and~~ ]

(7) follow application procedures and schedules as indicated by the Board ; and [ . ]

(8) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from selective service registration under federal law.

§21.1084.The Application and Awarding Process.

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

(d) If the student's financial need is based on the income methodology and prior year adjusted gross income is not available at the time of application, eligibility can be temporarily based on a prior prior-year tax return, but the student must provide the Board a copy of the prior-year tax return by the deadline set by the Board and reported to the student in his or her award letter. If the updated return indicates an income that exceeds the cut-off amount for eligibility, the student will be required to refund to the program any awards received based on prior prior-year data.

(e) [ ~~(d)~~ ] As soon as possible after processing applications, the Board will notify the relevant institutions, students and school districts of their awards. Institutions will be able to verify approval or a student's award through the Board's web site.

§21.1088.Exemption from Student Teaching.

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

(c) A person who receives a bachelor's degree required for a teaching certificate on the basis of higher education coursework completed while receiving an exemption from tuition and fees under this subchapter may not be required to participate in any field experience or internship consisting of student teaching to receive a teaching certificate.

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 February 13, 2008.

TRD-200800858

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter JJ. THE KENNETH H. ASHWORTH FELLOWSHIP PROGRAM

19 TAC §21.2003, §21.2005

The Texas Higher Education Coordinating Board proposes amendments to §21.2003 and §21.2005, concerning the Kenneth H. Ashworth Fellowship Program.

Specifically, the proposed amendments to §21.2003(b) eliminate the Student Services Division's representation on the selection committee in order to separate the staff performing support activities from those involved in the selection process. The proposed amendment to §21.2005 deletes a specific award amount from the rules to allow for flexibility in setting this amount based on the availability of funds.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that for each year of the first five years the sections 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 sections are in effect, the public benefit anticipated as a result of administering the sections will be more flexibility in program operations. 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.

The amendments are proposed under the Texas Education Code, §61.068, which allows the Board to accept gifts and donations from individuals and groups in order to offer programs that encourage students to attend college.

The amendments affect Texas Education Code, §61.068.

§21.2003.Selection Committee.

(a) (No change.)

(b) The committee consists of three members of the Coordinating Board staff appointed by the Commissioner, including at least one representative from the universities division[ ~~, one from the Student Services division~~ ] and one from another division of the agency.

§21.2005.Award Amounts.

No annual award received through this program may exceed an amount set by the selection committee [ ~~$2,000~~ ].

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

Filed with the Office of the Secretary of State on February 13, 2008.

TRD-200800859

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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, 21.2103

The Texas Higher Education Coordinating Board proposes amendments to §§21.2100, 21.2102 and 21.2103, concerning the Exemption Program for Veterans and their Dependents (The Hazlewood Act). These amendments were adopted on an emergency basis and appeared in the February 1, 2008, issue of the Texas Register (33 TexReg 817).

Specifically, amendments to §§21.2100(5), 21.2102(1) and 21.2103(1)(A) all reflect the withdrawal of General Opinions GA-0347 and GA-0445 by the Attorney General of Texas. The proposed amendments redefine the term "citizen of Texas" as "resident of Texas," and strike from the eligibility requirements for Hazlewood benefits the requirement that, in order for a veteran or his or her dependents to be eligible for Hazlewood benefits, such veteran must have been a citizen of the United States at the time he or she entered the armed services.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, 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 amendments are in effect, the public benefits anticipated as a result of administering the sections will be that veterans who were residents of Texas but who were not citizens of the United States at the time they entered the service, and their children, will be eligible for the benefits offered through the Hazlewood Act. 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.

The amendments are 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 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) - (4) (No change.)

(5) Citizen of Texas--A person who is a [ ~~United State Citizen and a~~ ] resident of Texas.

(6) - (19) (No change.)

§21.2102.Eligible Veterans.

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

(1) at the time he or she entered the service, was [ ~~a citizen of the United States and~~ ] a resident of Texas;

(2) - (8) (No change.)

§21.2103.Eligible Children.

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

(1) are dependent children of:

(A) members of the U.S. Armed Forces who were [ ~~citizens of the United States and~~ ] residents of Texas when they entered the service and who :

(i) - (iv) (No change.)

(B) (No change.)

(2) - (3) (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 February 13, 2008.

TRD-200800860

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

Subchapter A. PROVISIONS FOR THE SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE GRANT PROGRAM FOR STUDENTS AT INDEPENDENT INSTITUTIONS

19 TAC §22.1, §22.2

The Texas Higher Education Coordinating Board proposes the repeal of §22.1 and §22.2 concerning the Provisions for the Special Leveraging Educational Assistance Grant Program for Students at Independent Institutions. Specifically, this repeal will delete current Subchapter A, Chapter 22 of Board rules, concerning the Provisions for the Special Leveraging Educational Assistance Grant Program for Students at Independent Institutions, and all sections within it. The program is governed by federal regulations and state rules are not needed.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, the public benefit will be that confusion from having rules for a program that is governed by federal regulations will be eliminated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

The repeal is adopted under the Texas Education Code, §61.229, which provides the Coordinating Board with the authority to adopt rules necessary to implement the Tuition Equalization Grant Program.

The repeal affects the Texas Education Code, Chapter 61, Subchapter F, §§61.221 - 61.230.

§22.1.Adoption of Tuition Equalization Grant Program Rules.

§22.2.Exceptions to Tuition Equalization Grant Rules.

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 February 13, 2008.

TRD-200800861

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter B. PROVISIONS FOR THE TUITION EQUALIZATION GRANT PROGRAM

19 TAC §§22.22 - 22.30

The Texas Higher Education Coordinating Board proposes amendments to §§22.22 - 22.30 concerning Provisions for the Tuition Equalization Grant Program. Specifically, the proposed amendments to §22.22(5) corrects the definition of "Degree or certification program of four years or less" to agree with the term "or less". The proposed amendment to §22.22(8) deletes the term "Encumbered funds", as this term is no longer a feature in the program. Section 22.22(9) - (18) are renumbered accordingly. The proposed amendments to new §22.22(13) replaces the term "a person" with the term "a student" since this is the term used later in the rule. The proposed amendment to new §22.22(14) replaces the term "Initial award" with "Initial TEG" since this is the term used later in the rule and specifies the meaning of "Initial" to mean the first TEG award the student ever received. The proposed additions of §22.22(18), "Program Maximum", §22.22(20), "Regular Semester", §22.22(22), "State Fiscal Year", and §22.22(23), "Tuition Differential", are newly defined terms that have been added to assist the schools in administering the program. The proposed amendment to new §22.22(25) adds the term "student" to the definition of "Undergraduate". The proposed amendment to §22.23(a)(1) incorporates the conclusions in Texas Attorney General Opinion GA-0395, which indicated independent or private institutions have to be accredited by an entity that also accredits public institutions in order to meet the statutory requirement in Texas Education Code, §61.222 of meeting "the same standards and accreditation as public institutions". Amendments to §22.23(c)(3)(B)(iii) adds "refunds" to the types of activities for which an institution may be assessed a penalty if the refund is received after the deadline. The proposed amendment to §22.24(1)(A) replaces "an academic year" with the new term "state fiscal year" since this is the term used throughout the rules. In §22.24(3)(A) and (B)(i), the proposed amendment replaces the term "person" with the term "student" for consistency throughout these rules. Amendments in §22.24(3)(C) and (D) have been added to distinguish the difference between undergraduates and graduates regarding the number of hours required for continuing in the TEG program. The amendment in §22.24(5) identifies the three types of degree programs (first associate's, baccalaureate, or graduate) that are acceptable for participation in the TEG program. The proposed amendment in §22.24(7) adds language that requires the institution to have a statement on file verifying that the student has registered with the Selective Service System or is exempt from registration under federal law as required in Texas Education Code, §51.9095. The proposed amendments in §22.25(a), (b), and (c) replace the terms "person", "academic year", "TEG for the first time", and "grant" with the new terms that have already been described. In §22.26, the proposed amendment replaces the title "Hardship Provisions for Persons Awarded TEG for the first time on or after September 1, 2005" with the title "Hardship Provisions for Students Awarded an Initial TEG on or after September 1, 2005" for added consistency throughout the rules. In §22.26(a), the term "person" is replaced with the term "student", and new §22.26(a)(3) adds a third hardship condition to allow undergraduates who need less than 12 hours to complete a degree to qualify for a prorated grant award. In §22.27(b)(1) and (b)(1)(B), the amendment clarifies that the TEG award amount is calculated each fiscal year and may not exceed the prescribed maximums during that year. Section 22.27(b)(2) expands eligibility to receive a grant on a pro-rated basis to students who are enrolled less than half time if they are due to graduate. In §22.27(c), the title "Program Maximum" is replaced with the newly defined term "Exceptional Need Award" and again, the new term "undergraduate student" replaces the term "undergraduate" for consistency. Also in §22.27(c), the proposed amendments delete §22.27(c)(1), which is now redundant since "Program Maximum" is now defined in §22.22(18) and §22.27(c)(2), which is covered under the introductory sentence to §22.27(c) "Exceptional Need Award". Amendments in §22.27(e) clarify that a "Disbursement Limit" applies to either a single term or semester and incorporates the formula for calculating a student's maximum award amount. In §22.28 (Adjustment to Awards Made through Campus Based Processing), the proposed amendment deletes the requirement that unused funds should be returned by "check". All institutions have the option to return funds through electronic funds transfer. Other amendments to §22.28(1) and (2) have been made to clarify that institutions should use any released funds to re-award other students attending their institutions and must return any unused funds by the deadline. Section 22.28(3) was added to specify when refunds are or are not required. The amendments to §22.29 replace the title "Retroactive Disbursements" with the new title "Late Disbursements", and §22.29(b) describes procedures for awarding late disbursements to align TEG with the late disbursement procedures in the other grant programs. Amendments to §22.30(b) delete references to "encumbered funds" and reflect new procedures for reallocation. These new procedures specify that institutions must draw down their TEG funds on or before a specified date, or lose claim to these funds completely. Funds released in this way are subject to reallocation among other institutions.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, 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.

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 section will be more consistent administration among participating institutions. 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.

The amendments are proposed 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 - 61.230.

The amendments affect §§61.221 - 61.230.

§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 [ ~~offered~~ ] to a student.

(2) Board-- The [ ~~the~~ ] Texas Higher Education Coordinating Board.

(3) - (4) (No change.)

(5) Degree or certificate program of four years or less-- A [ 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 or less to complete.

(6) Degree or certificate program more than four years-- A [ 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 [ ~~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.]~~

(8) [ ~~(9)~~ ] Exceptional financial need-- The [ ~~the~~ ] need an undergraduate student has if his or her expected family contribution is less than or equal to $1,000.

(9) [ ~~(10)~~ ] Enrollment on at least a half-time basis--For undergraduates students , 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.

(10) [ ~~(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.

(11) [ ~~(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.

(12) [ ~~(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.

(13) [ ~~(14)~~ ] Graduate student-- A student [ ~~a person~~ ] who has been awarded a baccalaureate degree.

(14) [ ~~(15)~~ ] Initial TEG [ ~~award~~ ]-- The [ ~~the~~ ] first Tuition Equalization Grant ever awarded to a specific student [ ~~person~~ ].

(15) [ ~~(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.

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

(17) [ ~~(18)~~ ] Program or TEG-- The [ ~~the~~ ] Tuition Equalization Grant Program.

(18) Program Maximum--The TEG Program award maximum determined by the Board in accordance with Texas Education Code, §61.227 (relating to Payment of Grant; Amount).

(19) (No change.)

(20) Regular Semester--A fall or spring semester, typically of 16 weeks duration.

(21) [ ~~(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.

(22) State Fiscal Year--A period of time that begins on September 1 of one calendar year and ends on August 31 of the following calendar year.

(23) Tuition Differential--The difference between the tuition paid at the private or independent institution attended and the tuition the student would have paid to attend a comparable public institution.

(24) [ ~~(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.

(25) [ ~~(22)~~ ] Undergraduate student -- An [ an ] individual who has not yet received a baccalaureate degree.

§22.23.Institutions.

(a) Eligibility.

(1) Any college or university defined as a private or independent institution of higher education by Texas Education Code, §61.003, or that is located in Texas and is accredited by the Southern Association of Colleges and Schools [ ~~meets the same program standards and accreditation as public institutions of higher education as determined by the Board~~ ], except a theological or religious seminary, is [ ~~seminaries are,~~ ] eligible to participate in the TEG Program.

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

(b) (No change.)

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

(3) Reporting.

(A) (No change.)

(B) Penalties for Late Reports and/or Late Refunds.

(i) - (ii) (No change.)

(iii) The Commissioner may assess more severe penalties against an institution if any report or refund is received by the Board more than one month after its due date. The Commissioner may penalize an institution by reducing its allocation of funds in the following year by up to 10 percent for each late refund of grant funds. If grant funds are returned more than a week after the announced return date, they will be considered late.

(iv) (No change.)

(4) (No change.)

§22.24.Eligible Students.

To receive an award through the TEG Program, a student must:

(1) be enrolled for a minimum number of semester credit hours, which requires:

(A) if the student received a TEG in a state fiscal [ ~~an academic~~ ] year prior to 2005 - 2006 or was awarded a TEG for the 2005 - 2006 state fiscal [ ~~academic~~ ] year prior to September 1, 2005, enrollment on at least a half-time basis; or

(B) (No change.)

(2) (No change.)

(3) maintain satisfactory academic progress in his or her program of study which requires:

(A) if the student [ ~~person~~ ] received a TEG in a state fiscal [ ~~an academic~~ ] year prior to 2005 - 2006 or was awarded a TEG for the 2005 - 2006 state fiscal [ ~~academic~~ ] year prior to September 1, 2005, the student [ ~~person~~ ] must meet the academic progress requirements as set by the institution; or

(B) if the student [ ~~person~~ ] was awarded his or her initial TEG award on or after September 1, 2005:

(i) completion of at least 24 semester credit hours in the student's [ ~~person's~~ ] most recent academic year in an undergraduate degree or certificate program; or completion of at least 18 semester credit hours in the student's [ ~~person's~~ ] most recent academic year in a graduate or professional degree program (unless fewer hours are required for the completion of the degree), and

(ii) establishment and maintenance of an overall grade point average of at least 2.5 on a four-point scale or the equivalent on coursework previously attempted at public or private institutions.

[ ~~(C)~~ ] Grade point average calculations shall be made in accordance with institutional policies except that if a grant recipient's grade point average falls below program requirements and the student transfers to another institution, the receiving institution cannot make a continuation award to the transfer student until he/she provides official transcripts of previous coursework to the new institution's financial aid office and that office re-calculates an overall grade point average, including hours and grade points for courses taken at the old and new institutions that proves the student's overall grade point average now meets or exceeds program requirements.

(C) An undergraduate student enrolled in a participating institution for only one regular term or semester in a given academic year meets the semester-credit-hour requirement outlined in subparagraph (B)(i) of this paragraph for continuing in the program if he or she completes at least 12 semester credit hours or its equivalent during that term or semester.

(D) A graduate student enrolled in a participating institution for only one regular term or semester in a given academic year meets the semester-credit-hour requirement outlined in subparagraph (B)(i) of this paragraph for continuing in the program if he or she completes at least 9 semester credit hours or its equivalent during that term or semester.

(4) (No change.)

(5) be enrolled in an approved institution, in an individual degree plan leading to a first associate's degree, baccalaureate degree or a graduate degree ;

(6) be required to pay more tuition than is required at a comparable public college or university and be charged no less than the regular tuition required of all students enrolled at the institution; [ ~~and~~ ]

(7) have a statement on file with the institution indicating the student is registered with the Selective Service System as required by federal law or is exempt from selective service registration under federal law; and

(8) [ ~~(7)~~ ] not be a recipient of any form of athletic scholarship during the semester or semesters he or she is receiving a TEG.

§22.25.End of Eligibility.

(a) A student [ ~~person~~ ] awarded TEG [ ~~for a year~~ ] prior to the 2005 - 2006 state fiscal [ ~~academic~~ ] year [ ~~or on~~ ] or before September 1, 2005, for the 2005 - 2006 state fiscal [ ~~academic~~ ] year may continue to receive grants as long as he or she meets the relevant eligibility requirements of §22.24 of this title (relating to Eligible Students).

(b) An undergraduate student who is awarded an initial [ a ] TEG [ ~~for the first time~~ ] on or after September 1, 2005, shall not be eligible for a TEG [ ~~grant~~ ] on either:

(1) the fifth anniversary of the initial award of a TEG to the student [ ~~person~~ ], if the student [ ~~person~~ ] is enrolled in a degree or certificate program of four years or less; or

(2) the sixth anniversary of the initial award of a TEG to the student [ ~~person~~ ], if the student [ ~~person~~ ] is enrolled in a degree or certificate program of more than four years.

(c) A graduate student who is awarded an initial [ a ] TEG [ ~~for the first time~~ ] on or after September 1, 2005, may continue to receive grants as long as he or she meets the relevant eligibility requirements of §22.24 of this title.

§22.26.Hardship Provisions for Students [ ~~Persons~~ ] Awarded an Initial TEG [ ~~for the First Time~~ ] on or after September 1, 2005.

(a) In the event of a hardship or for other good cause, the Program Officer at an eligible institution may allow an otherwise eligible student [ ~~person~~ ] to receive a TEG while enrolled less than full time or if the student's grade point average or number of hours completed falls below the satisfactory academic progress requirements as referred to in §22.24 of this title (relating to Eligible Students). Such conditions may include, but are not limited to:

(1) a showing of a severe illness or other debilitating condition that may affect the student's academic performance; [ or ]

(2) an indication that the student is responsible for the care of a sick, injured, or needy person and that the student's provision of care may affect his or her academic performance ; or [ . ]

(3) an undergraduate student's need to complete fewer than 12 hours in a given term in order to complete a degree, in which case the award amount should be determined on a pro rata basis for a full-time award.

(b) (No change.)

§22.27.Award Amounts and Uses.

(a) (No change.)

(b) Award Amount.

(1) Each state fiscal year, no TEG [ No ] award shall exceed the least of:

(A) the student's financial need; [ or ]

(B) the student's tuition differential [ ~~the difference between the amount of tuition paid at the participating institution and the amount the student would have paid for tuition had he or she been enrolled at a comparable public institution~~ ]; or

(2) A grant to a part-time student whose initial TEG was awarded prior to September 1, 2005 or to any student enrolled for a limited number of hours due to imminent graduation shall be made on a pro rata basis of a full-time award.

(c) Exceptional Need Award. An undergraduate student who has exceptional financial need may receive a grant in an amount not to exceed 150 percent of the program maximum.

~~[(c) Program maximum.]~~

~~[(1) The TEG Program award maximum is determined by the Board in accordance with Texas Education Code, §61.227 (relating to Payment of Grant Amount).]~~

~~[(2) An undergraduate awarded a TEG grant on or after September 1, 2005, and who has exceptional financial need may receive a grant in an amount not to exceed 150 percent of the program maximum.]~~

(d) (No change.)

(e) Term or Semester Disbursement Limit. The amount of any disbursement in a single term or semester may not exceed the student's financial need, tuition differential or the program maximum for the state fiscal year, whichever is the least. [ ~~the difference between the tuition paid at the private or independent institution attended and the tuition the student would have paid to attend a comparable public institution.~~ ]

(f) (No change.)

§22.28.Adjustments to Awards Made through Campus-Based Processing.

If a student officially withdraws from enrollment, or for some other reason, the amount of a student's disbursement exceeds the amount the student is eligible to receive , [ ; ] the institution shall follow its general institutional refund policy in determining the amount by which the award is to be reduced [ ~~to be returned to the program~~ ].

(1) Such funds [ ~~Funds administered through campus-based operations do not have to be returned directly to the Board, but~~ ] should be re-awarded to other eligible students attending the institution . If funds cannot be re-awarded in a timely manner, they should be returned to the Board [ ~~in the form of an institution-issued check~~ ]. Such payment shall be accompanied with sufficient documentation to enable the Board to identify the appropriate program for which the funds were originally issued.

(2) Funds returned to the Board shall [ ~~should~~ ] be returned promptly, and must [ ~~but in no case shall they~~ ] be returned no later [ ~~more~~ ] than 60 days from the issue date.

(3) If the student withdraws or drops classes after the end of the institution's refund period, no refunds are due to the program.

§22.29. Late Disbursements [ ~~Retroactive Disbursements~~ ].

(a) (No change.)

(b) Funds that are disbursed after the end of the student's period of enrollment [ ~~retroactively~~ ] must [ ~~either~~ ] be used following Board procedures to either pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding student loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.30.Allocation and Reallocation of Funds.

(a) (No change.)

(b) Reallocations. Institutions will have until a date specified by the Board via a policy memo addressed to the Program Officer at the institution to encumber the program funds that have been allocated to them. On that date, institutions lose claim to any [ ~~unencumbered~~ ] funds not yet drawn down from the Board for immediate disbursement to students. The [ ~~, and the unencumbered~~ ] funds released in this manner are available to the Board 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.

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 February 13, 2008.

TRD-200800862

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter C. PROVISIONS FOR THE LEVERAGING EDUCATIONAL ASSISTANCE GRANT FOR STUDENTS AT INDEPENDENT INSTITUTIONS

19 TAC §22.41, §22.42

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of §22.41 and §22.42 concerning the Provisions for the Leveraging Educational Assistance Grant Program. Specifically, this proposed repeal will delete current Subchapter C, Chapter 22 of Board rules, concerning the Provisions for the Leveraging Educational Assistance Grant Program, and all sections within it. The program is governed by federal regulations, and state rules are not needed.

Ms. Hollis has also determined that, for each year of the first five years that the proposed repeal is in effect, the public benefit will be that confusion from having rules for a program that is governed by federal regulations will be eliminated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

The repeal is proposed under the Texas Education Code, §61.229, which provides the Coordinating Board with the authority to adopt rules necessary to implement the Tuition Equalization Grant Program.

The repeal affects the Texas Education Code, Chapter 61, Subchapter F, §§61.221 - 61.230.

§22.41.Adoption of Tuition Equalization Grant Program Rules.

§22.42.Exceptions to Tuition Equalization Grant Rules.

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 February 13, 2008.

TRD-200800863

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter F. PROVISIONS FOR THE SCHOLARSHIP PROGRAMS FOR VOCATIONAL NURSING STUDENTS

19 TAC §§22.102, 22.105, 22.107, 22.108

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §§22.102, 22.105, 22.107, and 22.108 concerning Provisions for the Scholarship Programs for Vocational Nursing Students. Specifically, the proposed amendments to §22.102(8) corrects the title of Subchapter B referenced in the definition of "Resident of Texas" to the full title "Determining Residence Status and Waiver Programs for Certain Nonresident Persons." The proposed amendments to §22.105(a)(4) and (5) add a requirement that the student must have a statement on file with the institution that verifies that the student has registered with the selective service or is exempt from registration under federal law as required in Texas Education Code, §51.9095. Section 22.105(b) changes responsibility for determining the ranking criteria for selecting scholarship applicants from the Coordinating Board to the institutions. The proposed amendment to §22.107 reflects the conversion of the programs from a central process (awards are determined at the Coordinating Board) to one that is campus-based (awards are made at the institutions) and allocates program funds to institutions according to their percentage of vocational nursing student enrollment statewide. The amendment to §22.108 deletes procedures for submitting applications to the Coordinating Board through a central processing system and adds procedures for requesting and disbursing funds through a campus-based processing system.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that, for each year of the first five years the amended sections as proposed 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 amended sections as proposed are in effect, the public benefit anticipated as a result of administering the section will be more efficient administration by participating institutions. 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 amendments are proposed under the Texas Education Code, §61.656, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Chapter 61, Subchapter L.

The proposed amendments affect §§61.651, 65.652, and 61.655 - 61.659.

§22.102.Definitions.

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

(1) - (7) (No change.)

(8) 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 and Waiver Programs for Certain Nonresident Persons ). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

(9) - (10) (No change.)

§22.105.Eligible Students.

(a) To receive funds through one of the Vocational Nursing Student Scholarship Programs, a student must:

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

(3) show financial need, which acts as one of the upper limits of a student's award through the program; [ ~~and~~ ]

(4) maintain satisfactory academic progress in his or her program of study as defined by the institution ; and [ . ]

(b) In determining what best promotes the health care and educational needs of this State, the institution [ ~~Board~~ ] shall consider the following factors relating to each applicant. The importance to be given each factor will be determined by the Board in consultation with the advisory committee described in §22.112 of this title (relating to Advisory Committee).

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

§22.107.Allocations.

Each participating institution will receive a share of the program funds that is based on its share of the statewide relevant vocational nursing student enrollment. Funds allocated to institutions may be used to make awards through either of the programs established by this subchapter. [ Approved institutions shall be invited to submit scholarship applications for eligible students to the Board by July 15. The number of applications which may be submitted by each school will be determined by the Board in keeping with the size of each school's vocational nursing student enrollment. ]

§22.108.Disbursements to Institutions.

Program officers will submit fund request forms to the Board periodically to request funds for immediate disbursement to students. Such funds are to be released to students or applied to student accounts within five working days of the funds' arrival at the institution or the institution's fiduciary agent [ ~~applications for eligible students to the Board, which will (through the State Comptroller's Office) issue state warrants for the students in accordance with disbursement schedules on the applications~~ ].

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 February 13, 2008.

TRD-200800864

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

19 TAC §§22.109 - 22.113

The Texas Higher Education Coordinating Board proposes the repeal of §§22.109 - 22.113, concerning the Provisions for the Scholarship Programs for Vocational Nursing Students. Specifically, these sections are proposed for repeal because the described procedures are no longer relevant.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that for each year of the first five years the repeal is in effect, there will be no significant fiscal implications to state or local government as a result of enforcing or administering the repeal of the sections.

Ms. Hollis has also determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of administering the repeal will be more efficient administration 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 repeal as proposed. There is no impact on local employment.

The repeal is proposed under the Texas Education Code, §61.656, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Chapter 61, Subchapter L.

The repeal affects §§61.651, 65.652, and 61.655 - 61.659.

§22.109.Adjustments to Awards Made through Central Processing.

§22.110.Retroactive Disbursements.

§22.111.Selection of Recipients.

§22.112.Advisory Committee.

§22.113.Dissemination of Information and Rules.

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 February 13, 2008.

TRD-200800866

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

19 TAC §§22.109 - 22.111

The Texas Higher Education Coordinating Board proposes new §§22.109 - 22.111, concerning the Provisions for the Scholarship Programs for Vocational Nursing Students. Specifically, the repeal of two sections necessitates the renumbering and creation of the new sections. The new sections will provide procedures for retroactive disbursements, the establishment of an advisory committee, and the dissemination of information and rules.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that for each year of the first five years the new sections 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 sections are in effect the public benefit anticipated as a result of administering the sections will be a more efficient administration 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.

The new sections are proposed under the Texas Education Code, §61.656 which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Chapter 61, Subchapter L.

The new sections affect Texas Education Code, §§61.651, 65.652, and 61.655 - 61.659.

§22.109.Retroactive Disbursements.

(a) A student may receive a disbursement after the end of his/her period of enrollment if the student:

(1) owes funds to the institution for the period of enrollment for which the award is being made; or

(2) received a student loan that is still outstanding for the period of enrollment for which the award is being made.

(b) Funds that are disbursed after the end of the student's period of enrollment must either be used to pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.110.Advisory Committee.

(a) The Board shall appoint an advisory committee to advise the Board concerning assistance provided under this subchapter to vocational nursing students.

(1) The advisory committee shall consist of:

(A) a chair named by the Board;

(B) one representative named by the License Vocational Nurses Association of Texas;

(D) one representative named by the Board of Nurse Examiners of the State of Texas;

(E) two representative of vocational nursing educational programs named by the Texas Association of Vocational Nurse Educators;

(F) one representative named by the Texas Health Care Association; and

(G) one representative named by the Texas Association of Homes for the Aging.

(2) The costs of participation on an advisory committee of a member representing a particular organization or agency shall be borne by that member or the organization or agency the member represents.

(b) The duties of the advisory committee shall be to:

(1) advise the Board on appropriate rules for the Vocational Nursing Student Scholarship Programs;

(2) advise the Board on the priorities of emphasis among the scholarship, the matching fund employment program found in Chapter 21, Subchapter U of this title (relating to the Matching Fund Employment Program for Vocational Nursing Students) and loan repayment program found in Chapter 21, Subchapter Q of this title (relating to the Licensed Vocational Nurses' Student Loan Repayment Program), provided for in Texas Education Code, Chapter 61, Subchapter L;

(3) advise the Board on the amount of money needed to fund adequately the Vocational Nursing Student Scholarship Programs;

(4) advise the Board on the establishment of priorities among the criteria for consideration of application approval which are listed in Texas Education Code, Chapter 61, Subchapter L, and in these rules; and

(5) assist the Board in the dissemination of information on the Vocational Nursing Student Scholarship Programs.

§22.111.Dissemination of Information and Rules.

The Board and its advisory committees are responsible for publishing and disseminating general information and program rules for the programs 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 February 13, 2008.

TRD-200800865

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter G. PROVISIONS FOR THE SCHOLARSHIP PROGRAMS FOR PROFESSIONAL NURSING STUDENTS

19 TAC §§22.122, 22.123, 22.125, 22.127, 22.128

The Texas Higher Education Coordinating Board proposes amendments to §§22.122, 22.123, 22.125, 22.127 and 22.128 concerning Provisions for the Scholarship Programs for Professional Nursing Students. Specifically, the proposed amendments to §22.122(9) correct the title of Subchapter B referenced in the definition of "Resident of Texas" to the full title "Determination of Resident Status and Waiver Programs for Certain Nonresident Persons." The proposed amendment to §22.123(a)(2) clarifies that "participating" institutions may not discriminate against individuals wishing to participate in the program on the basis of race, color, origin, gender, religion, age or disability. The proposed amendments to §22.125(a)(5) and (6) add a requirement that the student must have a statement on file with the institution that verifies that the student has registered with the selective service or is exempt from registration under federal law as required in Texas Education Code, §51.9095. §22.125(b) changes responsibility for determining the ranking criteria for selecting scholarship applicants from the Board to the institutions. The proposed amendment to §22.127 reflects the conversion of the program from a central process (awards are determined at the Board) to one that is campus-based (awards are made at the institutions) and allocates program funds to institutions according to their percentage of professional nursing student enrollment statewide. The amendment to §22.128 deletes procedures for submitting applications to the Board through a central processing system and adds procedures for requesting and disbursing funds through a campus-based processing system.

Ms. Hollis 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 will be more efficient administration by participating institutions. 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.

The amendments affect §61.651, 65.652, and 61.655 - 61.658.

§22.122.Definitions.

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

(1) - (8) (No change.)

(9) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B of this title (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons ). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

(10) (No change.)

§22.123.Institutions.

(a) Eligibility.

(1) Any college or university defined as a public or private or independent institution of higher education by Texas Education Code, §61.003, or that is located in Texas and meets the same program standards and accreditation as public institutions of higher education as determined by the Board is eligible to participate in the Professional Nursing Scholarship Programs.

(2) No participating institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating school or program must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

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

§22.125.Eligible Students.

(a) To receive funds through one of the Professional Nursing Student Scholarship Programs, a student must:

(1) - (3) (No change)

(4) maintain satisfactory academic progress in his or her program of study as defined by the institution; [ ~~and~~ ]

(5) be enrolled in a professional nursing program and, (if applying for an award through the Scholarship Program for Licensed Vocational Nurses studying to become Professional Nurses), be a Licensed Vocational Nurse ; and [ . ]

(6) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from selective service registration under federal law.

(1) - (7) (No change.)

§22.127.Allocations.

Each participating institution will receive a share of the program funds that based on its share of the statewide relevant professional nursing student enrollment. Funds allocated to institutions may be used to make awards through any of the programs established by this subchapter. [ Approved institutions shall be invited to submit scholarship applications for eligible students to the Board by July 15. The number of applications which may be submitted by each school will be determined by the Board in keeping with the size of each school's professional nursing student enrollment. The Board shall notify each school how many applications may be submitted by April 30 of each year. ]

§22.128.Disbursements to Institutions.

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 February 13, 2008.

TRD-200800868

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

19 TAC §§22.129 - 22.133

The Texas Higher Education Coordinating Board proposes the repeal of §§22.129 - 22.133 concerning the Provisions for the Scholarship Programs for Professional Nursing Students. Specifically, these sections are proposed for deletion because the described procedures are no longer relevant.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that for each year of the first five years the new sections 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 repeal is in effect the public benefit anticipated as a result of administering the sections will be more efficient administration 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 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 repeal affects §§61.651, 65.652, and 61.655 - 61.658.

§22.129.Adjustments to Awards Made through Central Processing.

§22.130.Retroactive Disbursements.

§22.131.Selection of Recipients.

§22.132.Advisory Committee.

§22.133.Dissemination of Information and Rules.

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 February 13, 2008.

TRD-200800869

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

19 TAC §§22.129 - 22.131

The Texas Higher Education Coordinating Board proposes new §§22.129 - 22.131 concerning the Provisions for the Scholarship Programs for Professional Nursing Students. Specifically, the deletion of two sections necessitates the renumbering and creation of the new sections. The new sections will provide procedures for retroactive disbursements, the establishment of an advisory committee, and the dissemination of information and rules.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, has determined that for each year of the first five years the new sections 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 sections are in effect the public benefit anticipated as a result of administering the sections will be a more efficient administration 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 section as proposed. There is no impact on local employment.

The new sections affect Texas Education Code, §§61.651, 65.652, and 61.655 - 61.658.

§22.129.Retroactive Disbursements.

(a) A student may receive a disbursement after the end of his/her period of enrollment if the student:

(1) owes funds to the institution for the period of enrollment for which the award is being made; or

(2) received a student loan that is still outstanding for the period of enrollment for which the award is being made.

§22.130.Advisory Committee.

(a) The Board shall appoint an advisory committee to advise the Board concerning assistance provided under this subchapter to professional nursing students.

(1) The advisory committee shall consist of:

(A) a chair named by the Board;

(B) one representative named by the Texas Nurses Association;

(D) one representative named by the Board of Nurse Examiners;

(E) a head of each of the three types of professional nursing educational programs, named by the deans and directors of nursing programs in this state;

(F) a representative of graduate nursing education named by the deans and directors of nursing programs in this state;

(G) one representative named by the Texas Health Care Association; and

(H) one representative named by the Texas Association of Homes for the Aging.

(2) The costs of participation on an advisory committee of a member representing a particular organization or agency shall be borne by that member or the organization or agency the member represents.

(b) The duties of the advisory committee shall be to:

(1) advise the Board on appropriate rules for the Professional Nursing Student Scholarship Programs;

(2) advise the Board on the priorities of emphasis among the scholarship, the matching fund employment program found in Chapter 21, Subchapter T of this title (relating to the Matching Fund Employment Program for Professional Nursing Students) and loan repayment program found in Chapter 21, Subchapter P of this title (relating to the Professional Nurses' Student Loan Repayment Program), provided for in Texas Education Code, Chapter 61, Subchapter L;

(3) advise the Board on the amount of money needed to fund adequately the Professional Nursing Student Scholarship Programs;

(4) advise the Board on the establishment of priorities among the criteria for consideration of application approval which are named in Texas Education Code, Chapter 61, Subchapter L, and in these rules; and

(5) assist the Board in the dissemination of information on the Professional Nursing Student Scholarship Programs.

§22.131.Dissemination of Information and Rules.

The Board and its advisory committees are responsible for publishing and disseminating general information and program rules for the programs 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 February 13, 2008.

TRD-200800867

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter J. PROVISIONS FOR THE TEXAS TUITION ASSISTANCE GRANT PROGRAM

19 TAC §§22.181 - 22.186

The Texas Higher Education Coordinating Board proposes the repeal of §§22.181 - 22.186, concerning the Provisions for the Texas Tuition Assistance Grant Program. Specifically, the repeal will delete current Chapter 22, Subchapter J, concerning the Texas Tuition Assistance Grant Program, of the Board rules and all sections within it. Beginning in Fiscal Year 2002, funding was limited to renewal students only and remaining funds transferred to the Texas Grant program. The program has since been phased out.

The repeal is proposed pursuant to House Bill 713, 76th Texas Legislature. In 1999 House Bill 713 repealed Subchapter G, §§56.101 - 56.108 of the Texas Education Code, Texas Tuition Assistance Grant Program, but required the Coordinating Board to continue funding renewal students. There are no longer any students in the program.

No other statutes, codes, or articles are affected by this proposal.

§22.181.Purpose.

§22.182.Eligible Institutions.

§22.183.Eligible Students.

§22.184.Award Amounts.

§22.185.Funding.

§22.186.Allocations.

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 February 13, 2008.

TRD-200800870

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

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

19 TAC §§22.226, 22.228, 22.229, 22.231, 22.235, 22.236

The Texas Higher Education Coordinating Board proposes amendments to §§22.226, 22.228, 22.229, 22.231, 22.235, and 22.236, concerning the Toward EXcellence, Access and Success (TEXAS) Grant Program. Specifically, the amendment to §22.226(a)(7) eliminates the definition of "encumbered funds," a term no longer relevant to the administration of the program. The remaining definitions are renumbered accordingly. The amendments to §22.228 include a change to §22.228(a)(1) to eliminate the specific reference to the core residency questions, since students may prove residency through the use of other documents, such as the common application for admission. The addition of §22.228(a)(8) reflects state selective service registration requirements (Texas Education Code §51.9095) for receiving state aid. The addition of §22.228(a)(9) reflects a more specific financial need requirement for initial awards that is used when funding for the TEXAS Grant program is limited. The amendment to §22.228(b)(3) cross-references the existence of a hardship provision that can allow continuing students enrolled less than three-quarters time to receive awards, and §22.228(b)(6) is added to reflect the selective service registration requirement for continuing recipients. Amendments to §22.229(b)(1) and (2) cross-reference the existence of hardship provisions that can allow students to continue to receive awards under certain hardship conditions. Amendments to §22.231 add subsection (e) to clarify that a student enrolled only one semester in a given academic year can meet program academic progress requirements for continuing in the program if he or she completes at least 12 semester credit hours during that term. Amendments to §22.235(b) clarify that "retroactive disbursements" are awards made after the end of a student's period of enrollment. Amendments to §22.236(b) clarify that as of the annual deadline specified by the Board, an institution that has not yet drawn down its full annual allocation of funds for disbursement to students will lose claim to the left over funds, which will be reallocated to other institutions. This deadline (March 1 for Fiscal Year 2008) is used to ensure the full use of funds.

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 amended sections will be an easier understanding of program requirements. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

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

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

§22.226.Definitions.

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

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

~~[(7) 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.]~~

(7) [ ~~(8)~~ ] Enrolled on at least a three-quarter basis--Enrolled for the equivalent of nine semester credit hours in a regular semester.

(8) [ ~~(9)~~ ] Entering undergraduate--A student enrolled in the first 30 semester credit hours or their equivalent, excluding hours taken during dual enrollment in high school and courses for which the student received credit through examination.

(9) [ ~~(10)~~ ] 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.

(10) [ ~~(11)~~ ] 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.

(11) [ ~~(12)~~ ] Initial year award--The grant award made in the student's first year in the TEXAS Grant program, typically made up of a fall and spring disbursement.

(12) [ ~~(13)~~ ] Institution of Higher Education or Institution--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).

(13) [ ~~(14)~~ ] Period of enrollment--The term or terms within the current 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.

(14) [ ~~(15)~~ ] Private or Independent Institution of Higher Education--Any college or university defined as a private or independent institution of higher education by Texas Education Code, §61.003(15).

(15) [ ~~(16)~~ ] 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.

(16) [ ~~(17)~~ ] Recommended or advanced high school programs--The curriculum specified in the Texas Education Code, §28.025, and the rules promulgated there under by the State Board of Education.

(17) [ ~~(18)~~ ] Required fees--A mandatory fee (required by statute) or discretionary fee (authorized by statute, imposed by the governing board of an institution) and that an institution charges to a student as a condition of enrollment at the institution or in a specific course.

(18) [ ~~(19)~~ ] Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B[ , ] of this title (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons [ ~~Determining Residence Status~~ ]). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

(19) [ ~~(20)~~ ] Tuition--Statutory tuition, designated and/or Board-authorized tuition.

§22.228.Eligible Students.

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

(1) be a resident of Texas[ ~~, as evidenced by answers to the Board's core residency questions~~ ];

(2) - (6) (No change.)

(7) enroll in an undergraduate degree or certificate program at an approved institution on at least a three-quarter time basis:

(A) (No change.)

(B) not later than the end of the 12th month after a student has received an associate degree; [ ~~and~~ ]

(8) have a statement on file with his or her institution that indicates the student is registered with the Selective Service System as required by federal law or is exempt from selective service registration under federal law;

(9) have an expected family contribution that does not exceed the limit set by the Board for the relevant state fiscal year; and

(10) [ ~~(8)~~ ] if awarded the grant on or after September 1, 2005, be enrolled in an institution of higher education.

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

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

(3) be enrolled at least three-quarter time unless granted a hardship waiver of this requirement under §21.231 of this title (relating to Hardship Provisions) ;

(4) (No change.)

(5) not have been granted a baccalaureate degree; [ ~~and~~ ]

(7) [ ~~(6)~~ ] make satisfactory academic progress towards an undergraduate degree or certificate, as defined in §21.229 of this title (relating to Satisfactory Academic Progress).

(8) [ ~~(7)~~ ] If a student's eligibility was based on the expectation that the student would complete the Recommended or Advanced High School Program, and the student failed to do so, then in order to resume eligibility such a student must:

(A) receive an associate's degree;

(B) meet all other qualifications for a TEXAS Grant; and

(C) if required to do so by the institution through which the TEXAS Grant was made, repay the amount of the TEXAS Grant that was previously received.

§22.229.Satisfactory Academic Progress.

(a) (No change.)

(b) At the end of the year in which a person receives a continuation award:

(1) a recipient who was awarded an initial year TEXAS grant prior to September 1, 2005, shall , unless granted a hardship postponement in accordance with §22.231 of this title (relating to Hardship Provisions) :

(A) - (B) (No change.)

(2) A recipient who was awarded an initial year award through the TEXAS Grant Program on or after September 1, 2005 shall , unless granted a hardship postponement in accordance with §22.231 of this title (relating to Hardship Provisions) :

(A) - (C) (No change.)

§22.231.Hardship Provisions.

(a) - (d) (No change.)

(e) A student enrolled in a participating institution for only one regular term or semester in a given academic year meets the semester-credit-hour requirement outlined in §21.228(b)(7) of this title (relating to Eligible Students) for continuing in the program if he or she completes at least 12 semester credit hours or its equivalent during that term or semester.

§22.235.Retroactive Disbursements.

(a) (No change.)

(b) Funds that are disbursed after the end of a student's period of enrollment [ ~~retroactively~~ ] must either be used to pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.236.Allocation and Reallocation of Funds.

(a) (No change.)

(b) Reallocations. Institutions will have until a date specified by the Board via a policy memo addressed to the Program Officer at the institution to encumber the program funds that have been allocated to them. On that date, institutions lose claim to any [ ~~unencumbered~~ ] funds not yet drawn down from the Board for immediate disbursement to students , and the [ ~~unencumbered~~ ] funds released in this manner are available to the Board 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.

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 February 13, 2008.

TRD-200800871

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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

Subchapter M. TEXAS EDUCATIONAL OPPORTUNITY GRANT PROGRAM

19 TAC §§22.254, 22.256, 22.260

The Texas Higher Education Coordinating Board proposes amendments to §§22.254, 22.256, and 22.260, concerning the Texas Educational Opportunity Grant Program. Specifically, the proposed amendments to §22.254(15) clarifies the cross-reference of the Board rules for determining residency and corrects the title of Subchapter B referenced in the definition of "Resident of Texas" to the full title: "Determination of Resident Status and Waiver Programs for Certain Nonresident Persons." The proposed amendments to §22.256(a)(6) and new paragraph (7) and §22.256(b)(6) and new paragraph (7) provide for an additional eligibility requirement for initial and continuing students: a statement from the student must be on file with the institution verifying that he or she has registered with the selective service or is exempt from registration under federal law, as required in Texas Education Code, §51.9095. The existing §22.256(b)(7) is re-numbered to paragraph (8). The proposed amendment to §22.260(b)(2) reflects the requirement that an institution may not make awards for amounts less than the maximum amount, except in the case of a student who is enrolled less than half-time, and describes the calculation for determining pro-rated award amounts.

Ms. Lois Hollis, Senior Assistant to the Deputy Commissioner for Business and Finance, 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 amended 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 amended sections will be more consistent administration among participating institutions. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

The amendments are proposed under the Texas Education Code, §56.403, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §56.401 - 56.4075.

The amendments affect §§56.401 - 56.4075.

§22.254.Definitions.

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

(1) - (14) (No change.)

(15) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B [ ~~§§21.21 - 21.27~~ ] of this title (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons [ ~~Determining Residence Status~~ ]). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

§22.256.Eligible Students.

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

(1) - (4) (No change.)

(5) not be eligible for a TEXAS Grant; [ ~~and~~ ]

(6) not have been granted an associate's or baccalaureate degree ; and [ . ]

(7) have a statement on file with the institution of higher education indicating the student is registered with the Selective Service System as required by federal law or is exempt from selective service registration under federal law.

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

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

(6) not be eligible for a TEXAS Grant; [ ~~and~~ ]

(8) [ ~~(7)~~ ] make satisfactory academic progress towards an undergraduate degree or certificate, which requires:

(A) for persons receiving their first awards prior to fall semester, 2005, completion of at least 75% of the hours attempted in the student's most recent academic year, and maintenance of an overall grade point average of at least 2.5 on a four point scale or its equivalent.

(B) for persons receiving their first awards for fall 2005 or later:

(i) compliance with the academic progress requirements of the institution as of the end of the first academic year; and

(ii) in subsequent academic years, completion of at least 75% of the hours attempted in the student's most recent academic year, and maintenance of an overall grade point average of at least 2.5 on a four point scale or its equivalent.

(D) Grade point average calculations may be made in keeping with institutional policies except that if a grant recipient's grade point average falls below program requirements and the student transfers to another institution, the receiving institution cannot make a continuation award to the transfer student until he/she provides official transcripts of previous coursework to the new institution's financial aid office and that office re-calculates an overall grade point average, including hours and grade points for courses taken at the old and new institutions that proves the student's overall grade point average now meets or exceeds program requirements.

§22.260.Award Amounts and Adjustments.

(a) (No change.)

(b) Award Amounts.

(1) (No change.)

(2) The Board shall determine and announce the maximum amount of a Texas Educational Opportunity Grant award prior to the start of each fiscal year. The calculation of the maximum amount will be based on the mandates contained in Texas Education Code, §56.407. However, no student's award shall be greater than the amount of the student's financial need. To insure the program has sufficient funds to make awards to all eligible returning recipients, institutions may not decrease award amounts per student in order to provide grants to a larger number of applicants. If an otherwise eligible student, due to hardship, enrolls for less than a half-time course load, his or her award is to be prorated. The amount he or she can be awarded is equal to the semester's maximum award for the relevant type of institution, divided by twelve hours and multiplied by the actual number of hours for which the student is enrolled.

(3) (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 February 13, 2008.

TRD-200800872

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: April 24, 2008

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