87R2259 KJE-D     By: Menéndez S.B. No. 103       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of the Texas First Generation   Matching Scholarship Program for certain first generation students   at public institutions of higher education.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 56, Education Code, is amended by adding   Subchapter S to read as follows:   SUBCHAPTER S. TEXAS FIRST GENERATION MATCHING SCHOLARSHIP PROGRAM          Sec. 56.501.  DEFINITIONS. In this subchapter:                (1)  "Coordinating board" means the Texas Higher   Education Coordinating Board.                (2)  "First generation student" means a person:                      (A)  whose parents or legal guardians have not   obtained a baccalaureate degree; or                      (B)  who is or was in the conservatorship of the   Department of Family and Protective Services.                (3)  "Program" means the Texas First Generation   Matching Scholarship Program.          Sec. 56.502.  PROGRAM PURPOSE. The purpose of the Texas   First Generation Matching Scholarship Program is to provide   assistance in the payment of tuition and required fees to enable   eligible first generation students to attend institutions of higher   education.          Sec. 56.503.  FIRST GENERATION MATCHING SCHOLARSHIP   ACCOUNT. (a) The first generation matching scholarship account is   an account in the general revenue fund.          (b)  The account consists of:                (1)  money appropriated or transferred to the credit of   the account by the legislature; and                (2)  interest earned on the investment of money in the   account.          (c)  Money in the account may be used only to provide   scholarships to eligible first generation students as provided by   this subchapter.          Sec. 56.504.  ADMINISTRATION OF PROGRAM. The coordinating   board shall administer the program and adopt any rules necessary to   implement the program or this subchapter.  The coordinating board   shall consult with the student financial aid officers of   institutions of higher education in developing the rules.          Sec. 56.505.  ALLOCATION AND DISTRIBUTION OF MATCHING FUNDS;   REMISSION OF UNSPENT FUNDS.  (a)  For each academic year, the   coordinating board shall allocate the total amount of funding   available for purposes of the program for that year to institutions   of higher education in proportion to the number of full-time   equivalent students enrolled at each institution.          (b)  Before the last date on which the institution permits   students enrolled at the institution to drop or add courses for a   fall semester, the coordinating board shall distribute to each   institution of higher education an amount of funding equal to the   lesser of:                (1)  50 percent of the total amount of any gifts or   endowment funds received by the institution that are designated to   be used for purposes of providing matching funds for the program for   the applicable academic year; or                (2)  the amount allocated to the institution under   Subsection (a).          (c)  If the amount allocated to an institution of higher   education under Subsection (a) is greater than the amount   distributed to the institution under Subsection (b) for an academic   year, the coordinating board shall distribute the remainder to each   institution of higher education for which the total amount of gifts   or endowment funds described by Subsection (b)(1) exceeds the   amount allocated to the institution under Subsection (a).  The   coordinating board shall distribute the remainder to those   institutions in proportion to the number of full-time equivalent   students enrolled in those institutions.          (d)  An institution of higher education is not entitled to   funding under Subsection (b) to match a gift or funding from an   endowment if the gift or endowment has been pledged but has not been   received by the institution.          (e)  Gifts or endowment funds matched under this section are   not eligible for matching under any other state matching   scholarship or grant program.          (f)  Not later than June 1 of each year, an institution of   higher education shall remit to the coordinating board any amount   distributed to the institution under this section during the   preceding academic year that was not used to award scholarships   under the program.          Sec. 56.506.  AWARD OF SCHOLARSHIP.  (a)  From money   available for the purpose, each institution of higher education   shall award scholarships to eligible students under the program.          (b)  Each institution of higher education shall establish an   application process for a scholarship under the program.          Sec. 56.507.  INITIAL ELIGIBILITY FOR SCHOLARSHIP. (a) To   be eligible initially for a scholarship under the program, a person   must:                (1)  be a first generation student;                (2)  be a resident of this state as determined by   coordinating board rules;                (3)  meet financial need requirements as defined by the   coordinating board;                (4)  be enrolled in an associate or baccalaureate   degree or certificate program at an institution of higher   education;                (5)  be enrolled as an entering student for at least   one-half of a full course load for an entering student in the   associate or baccalaureate degree or certificate program, as   determined by the coordinating board;                (6)  have applied for any available financial aid or   assistance; and                (7)  comply with any additional nonacademic   requirement adopted by the coordinating board under this   subchapter.          (b)  A person is not eligible to receive a scholarship under   the program if the person has been convicted of a felony or an   offense under Chapter 481, Health and Safety Code, or under the law   of another jurisdiction involving a controlled substance as defined   by Chapter 481, Health and Safety Code, unless the person has met   the other applicable eligibility requirements under the program and   has:                (1)  received a certificate of discharge by the Texas   Department of Criminal Justice or a correctional facility or   completed a period of probation ordered by a court, and at least two   years have elapsed from the date of the receipt or completion; or                (2)  been pardoned, had the record of the offense   expunged from the person's record, or otherwise been released from   the resulting ineligibility to receive a scholarship under the   program.          (c)  A person is not eligible to receive a scholarship under   the program if the person has been granted:                (1)  a certificate for completion of a certificate   program; or                (2)  a baccalaureate degree.          (d)  A person may not receive a scholarship under the program   for more than:                (1)  75 semester credit hours or the equivalent, if the   person is enrolled in a degree or certificate program of two years   or less; or                (2)  150 semester credit hours or the equivalent, if   the person is enrolled in a degree or certificate program of more   than two years.          (e)  A person's eligibility for a scholarship under the   program ends on:                (1)  the third anniversary of the initial award of a   scholarship under the program to the person, if the person is   enrolled in a degree or certificate program of two years or less;                (2)  the fifth anniversary of the initial award of a   scholarship under the program to the person, if the person is   enrolled in a degree or certificate program of more than two years   but not more than four years; or                (3)  the sixth anniversary of the initial award of a   scholarship under the program to the person, if the person is   enrolled in a degree or certificate program of more than four years.          Sec. 56.508.  CONTINUING ELIGIBILITY AND ACADEMIC   PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a   scholarship under the program, a person may continue to receive a   scholarship under the program during each semester or term in which   the person is enrolled at a participating institution only if the   person:                (1)  meets financial need requirements as defined by   the coordinating board;                (2)  is enrolled in an associate or baccalaureate   degree or certificate program at a participating institution;                (3)  is enrolled for at least one-half of a full course   load for a student in an associate or baccalaureate degree or   certificate program, as determined by the coordinating board;                (4)  makes satisfactory academic progress toward an   associate or baccalaureate degree or certificate; and                (5)  complies with any additional nonacademic   requirement adopted by the coordinating board.          (b)  A person is not eligible to continue to receive a   scholarship under this section if the person has been convicted of a   felony or an offense under Chapter 481, Health and Safety Code, or   under the law of another jurisdiction involving a controlled   substance as defined by Chapter 481, Health and Safety Code, unless   the person has met the other applicable eligibility requirements   under the program and has:                (1)  received a certificate of discharge by the Texas   Department of Criminal Justice or a correctional facility or   completed a period of probation ordered by a court, and at least two   years have elapsed from the date of the receipt or completion; or                (2)  been pardoned, had the record of the offense   expunged from the person's record, or otherwise been released from   the resulting ineligibility to receive a scholarship under the   program.          (c)  If a person fails to meet any of the requirements of   Subsection (a) after the completion of any semester or term, the   person may not receive a scholarship under the program during the   next semester or term in which the person enrolls. A person may   become eligible to receive a scholarship under the program in a   subsequent semester or term if the person:                (1)  completes a semester or term during which the   student is not eligible for a scholarship; and                (2)  meets all the requirements of Subsection (a).          (d)  For the purpose of this section, a person makes   satisfactory academic progress toward an associate or   baccalaureate degree or certificate only if:                (1)  in the person's first academic year, the person   meets the satisfactory academic progress requirements of the   institution at which the person is enrolled; and                (2)  in the subsequent academic year, the person:                      (A)  completes at least 75 percent of the semester   credit hours attempted in the student's most recent academic year;   and                      (B)  has earned an overall grade point average of   at least 2.5 on a four-point scale or the equivalent on course work   previously attempted at institutions of higher education.          (e)  A person who is eligible to receive a scholarship under   the program continues to remain eligible to receive the scholarship   if the person enrolls in or transfers to another institution of   higher education.          (f)  The coordinating board shall adopt rules to allow a   person who is otherwise eligible to receive a scholarship under the   program, in the event of a hardship or for other good cause shown,   including a showing of a severe illness or other debilitating   condition that may affect the person's academic performance or that   the person is responsible for the care of a sick, injured, or needy   person and that the person's provision of care may affect the   person's academic performance, to receive a scholarship under the   program:                (1)  while enrolled in a number of semester credit   hours that is less than the number of semester credit hours required   under Subsection (a)(3); or                (2)  if the student's grade point average or completion   rate falls below the satisfactory academic progress requirements of   Subsection (d).          Sec. 56.509.  SCHOLARSHIP USE. A scholarship awarded under   the program may be applied only to the payment of tuition and   required fees at an institution of higher education.          Sec. 56.510.  SCHOLARSHIP AMOUNT; ALLOCATION. (a) The   amount of a scholarship awarded by an institution of higher   education to an eligible student under the program for a semester or   other academic term in which the student is enrolled at the   institution may not exceed the difference between the amount of   tuition and required fees charged to the student by the institution   for that semester or term and the amount of any other gift aid,   including state or federal grants or scholarships, awarded to the   student for that semester or term.          (b)  A scholarship may not be awarded under the program to an   eligible student for a semester or other academic term until any   other gift aid for which the student is eligible has been awarded to   the student and the student's unmet financial need has been   established for purposes of determining the appropriate amount of   the student's scholarship under Subsection (a).          Sec. 56.511.  NOTIFICATION OF PROGRAM; RESPONSIBILITIES OF   SCHOOL DISTRICTS. (a)  The coordinating board, in consultation   with all institutions of higher education, shall prepare materials   designed to inform prospective students, their parents or   guardians, and high school counselors about the program and   eligibility for a scholarship under the program.  The coordinating   board shall distribute to each institution of higher education and   to each school district a copy of the materials prepared under this   section.          (b)  Each school district shall notify its high school   students, those students' teachers and school counselors, and those   students' parents or guardians of the program and the eligibility   requirements of the program.          Sec. 56.512.  GIFTS, GRANTS, AND DONATIONS.  Each   institution of higher education may solicit and accept gifts,   grants, and donations from any public or private source for the   purposes of providing matching institutional funds under this   subchapter.          Sec. 56.513.  REPORTING. (a)  On or before a date   established by coordinating board rule, each institution of higher   education shall annually submit to the coordinating board a report   on the award of scholarships by the institution under the program   for the preceding academic year. The report must include the amount   of the scholarship awarded to each student.          (b)  Not later than July 1 of each year, each institution of   higher education shall submit to the governor, the lieutenant   governor, the speaker of the house of representatives, and the   coordinating board a report on the effectiveness of the program.     The report must include:                (1)  the amounts of the scholarships awarded under the   program for the preceding academic year;                (2)  the demographics of students who received a   scholarship under the program for the preceding academic year; and                (3)  the retention and graduation rates of students who   received a scholarship under the program.          SECTION 2.  (a)  The Texas Higher Education Coordinating   Board shall adopt rules to administer Subchapter S, Chapter 56,   Education Code, as added by this Act, as soon as practicable after   the effective date of this Act.          (b)  Each public institution of higher education shall begin   awarding scholarships under Subchapter S, Chapter 56, Education   Code, as added by this Act, for the first academic year for which   money is available for that purpose, except that an institution may   not award scholarships under that subchapter for an academic year   before the 2022-2023 academic year.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2021.