Bill Text: TX HB700 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to the repeal of the Texas B-On-time student loan program.
Spectrum: Bipartisan Bill
Status: (Passed) 2015-06-20 - Effective on 9/1/15 [HB700 Detail]
Download: Texas-2015-HB700-Enrolled.html
H.B. No. 700 |
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relating to the repeal of the Texas B-On-time student loan program. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 52.89(c), Education Code, is amended to | ||
read as follows: | ||
(c) The board shall deposit to the credit of the fund any | ||
proceeds from the sale of bonds, excluding: | ||
(1) any accrued interest on the bonds which shall be | ||
deposited in the board interest and sinking fund relating to the | ||
bonds; and | ||
(2) proceeds from the sale of bonds issued by the board | ||
under Section 56.464(b), as that subsection existed immediately | ||
before September 1, 2015 [ |
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SECTION 2. Sections 52.90(a) and (b), Education Code, are | ||
amended to read as follows: | ||
(a) The board[ |
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qualifies for a loan under Subchapter C[ |
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(b) Loans from the fund are governed by Subchapter C [ |
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SECTION 3. The heading to Section 52.91, Education Code, is | ||
amended to read as follows: | ||
Sec. 52.91. BONDS FOR FORMER TEXAS B-ON-TIME STUDENT LOAN | ||
PROGRAM. | ||
SECTION 4. Sections 52.91(a) and (c), Education Code, are | ||
amended to read as follows: | ||
(a) The board shall deposit to the credit of the Texas | ||
B-On-time student loan account established under Section 56.0092 | ||
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fund Texas B-On-time student loans under Section 56.464(b), as that | ||
subsection existed immediately before September 1, 2015, other | ||
than[ |
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deposited to the credit of the interest and sinking fund related to | ||
the bonds[ |
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(c) The board shall repay bonds described by Subsection (a) | ||
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appropriations, and money collected by the board as repayment for | ||
Texas B-On-time student loans awarded by the board under Section | ||
56.0092(c) for a semester or term occurring before the 2020 fall | ||
semester. The board may also repay the bonds by using [ |
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set aside under Section 56.465, as that section existed immediately | ||
before September 1, 2015, for a semester or term occurring before | ||
the 2015 fall semester [ |
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bonds with [ |
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student loans awarded by the board under Subchapter C [ |
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SECTION 5. Section 54.0065(a), Education Code, is amended | ||
to read as follows: | ||
(a) A qualified student is eligible for a rebate of a | ||
portion of the undergraduate tuition the student has paid if the | ||
student: | ||
(1) is awarded a baccalaureate degree from a general | ||
academic teaching institution within: | ||
(A) four calendar years after the date the | ||
student initially enrolled in the institution or another | ||
postsecondary educational institution if: | ||
(i) the institution awarding the degree is | ||
a four-year institution; and | ||
(ii) the student is awarded a degree other | ||
than a degree in engineering, architecture, or any other program | ||
determined by the coordinating board to require more than four | ||
years to complete; or | ||
(B) five calendar years after the date the | ||
student initially enrolled in the institution or another | ||
postsecondary educational institution if: | ||
(i) the institution awarding the degree is | ||
a four-year institution; and | ||
(ii) the student is awarded a degree in | ||
engineering, architecture, or any other program determined by the | ||
coordinating board to require more than four years to complete [ |
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(2) has attempted no more than three hours in excess of | ||
the minimum number of semester credit hours required to complete | ||
the degree program: | ||
(A) including: | ||
(i) transfer credits; and | ||
(ii) course credit earned exclusively by | ||
examination, except that, for purposes of this subsection, only the | ||
number of semester credit hours earned exclusively by examination | ||
in excess of nine semester credit hours is treated as hours | ||
attempted; and | ||
(B) excluding: | ||
(i) course credit that is earned to satisfy | ||
requirements for a Reserve Officers' Training Corps (ROTC) program | ||
but that is not required to complete the degree program; and | ||
(ii) course credit, other than course | ||
credit earned exclusively by examination, that is earned before | ||
graduating from high school. | ||
SECTION 6. Subchapter A, Chapter 56, Education Code, is | ||
amended by adding Section 56.0092 to read as follows: | ||
Sec. 56.0092. TEXAS B-ON-TIME STUDENT LOAN ACCOUNT; FORMER | ||
LOAN PROGRAM CONTINUED IN EFFECT FOR CERTAIN ACADEMIC YEARS ONLY. | ||
(a) The Texas B-On-time student loan account previously | ||
established by former Section 56.463 continues as an account in the | ||
general revenue fund. The account consists of: | ||
(1) gifts and grants; | ||
(2) any legislative appropriations received for the | ||
purpose of awarding Texas B-On-time student loans to students who | ||
qualify and establish eligibility for the loans as described by | ||
Subsection (c) and for discharging any other remaining obligations | ||
under the former Texas B-On-time student loan program; | ||
(3) tuition set aside under Section 56.465, as that | ||
section existed immediately before September 1, 2015, for a | ||
semester or term occurring before the 2015 fall semester; | ||
(4) bond proceeds deposited under Section 52.91(a); | ||
and | ||
(5) any other money in the account on September 1, | ||
2015. | ||
(b) Money in the Texas B-On-time student loan account may be | ||
used only to pay any costs of the coordinating board related to | ||
loans awarded under the Texas B-On-time student loan program as | ||
provided by Subsection (c) for a semester or term occurring before | ||
the 2020 fall semester. | ||
(c) Beginning with the 2015 fall semester, the coordinating | ||
board may not award an initial Texas B-On-time student loan under | ||
the Texas B-On-time student loan program. The coordinating board | ||
may award, for a semester or term occurring before the 2020 fall | ||
semester, a subsequent Texas B-On-time student loan to an eligible | ||
student who received an initial Texas B-On-time student loan before | ||
the 2015-2016 academic year. For Texas B-On-time student loans to | ||
be awarded as described by this subsection: | ||
(1) students may qualify and establish continued | ||
eligibility, as applicable, under Subchapter Q as that subchapter | ||
existed immediately before September 1, 2015; and | ||
(2) the coordinating board may make loans using any | ||
money available for the purposes of the former Texas B-On-time | ||
student loan program. | ||
(d) On September 1, 2020, the Texas B-On-time student loan | ||
account is abolished, and any remaining money in the account may be | ||
appropriated only to eligible institutions in the manner provided | ||
by Subsection (e). | ||
(e) An appropriation under Subsection (d) must be made in | ||
accordance with a formula, adopted by coordinating board rule, that | ||
the coordinating board determines fairly allocates the | ||
appropriated amount to those eligible institutions at which the | ||
Texas B-On-time student loan program was underutilized. For | ||
purposes of this subsection, the Texas B-On-time student loan | ||
program is considered to have been underutilized by students of an | ||
institution in any period if the institution's percentage of the | ||
total amount of tuition set aside by all institutions under the | ||
program during the period was greater than the institution's | ||
percentage of all students who received a Texas B-On-time student | ||
loan under the program for the same period. The coordinating board | ||
shall base the coordinating board's determination on a period of | ||
academic years occurring before the 2015-2016 academic year that | ||
the coordinating board considers representative of eligible | ||
institutions' student participation in the Texas B-On-time student | ||
loan program. | ||
(f) In this section, "eligible institution" means a general | ||
academic teaching institution described by Section 56.451(2)(A) or | ||
a medical and dental unit described by Section 56.451(2)(B), as | ||
those paragraphs existed immediately before September 1, 2015. | ||
SECTION 7. Section 56.011(a), Education Code, is amended to | ||
read as follows: | ||
(a) The governing board of each institution of higher | ||
education shall cause to be set aside not less than 15 [ |
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of any amount of tuition charged to a resident undergraduate | ||
student under Section 54.0513 in excess of $46 per semester credit | ||
hour. The funds set aside under this section by an institution | ||
shall be used to provide financial assistance for resident | ||
undergraduate students enrolled in the institution. | ||
SECTION 8. The following provisions of the Education Code | ||
are repealed: | ||
(1) Sections 52.89(c-1) and 52.91(b); | ||
(2) Section 56.307(l); and | ||
(3) Subchapter Q, Chapter 56. | ||
SECTION 9. (a) Notwithstanding any other law, Subchapter | ||
Q, Chapter 56, Education Code, as that subchapter existed | ||
immediately before the effective date of this Act, is continued in | ||
effect solely for the purposes of: | ||
(1) awarding Texas B-On-time student loans as provided | ||
by Section 56.0092(c), Education Code, as added by this Act; and | ||
(2) discharging any other remaining obligations under | ||
the former Texas B-On-time student loan program. | ||
(b) The repeal by this Act of Section 56.465, Education | ||
Code, applies beginning with tuition charged for the 2015 fall | ||
semester. | ||
SECTION 10. Section 56.011(a), Education Code, as amended | ||
by this Act, applies beginning with tuition charged for the 2015 | ||
fall semester. Tuition charged for an academic period before that | ||
term or semester is covered by the law in effect immediately before | ||
the effective date of this Act, and the former law is continued in | ||
effect for that purpose. | ||
SECTION 11. This Act takes effect September 1, 2015. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 700 was passed by the House on April | ||
23, 2015, by the following vote: Yeas 130, Nays 10, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 700 was passed by the Senate on May | ||
22, 2015, by the following vote: Yeas 25, Nays 6. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |