87R18094 MM-F     By: González of El Paso, VanDeaver, Stucky, H.B. No. 4387       Raney       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of the Texas Transfer Grant Pilot   Program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 56, Education Code, is amended by adding   Subchapter N to read as follows:   SUBCHAPTER N. TEXAS TRANSFER GRANT PILOT PROGRAM          Sec. 56.331.  DEFINITIONS. In this subchapter:                  (1)  "Coordinating board" means the Texas Higher   Education Coordinating Board.                (2)  "Eligible institution" means a general academic   teaching institution or a medical and dental unit that offers one or   more baccalaureate degree programs. The term does not include a   public state college.                (3)  "General academic teaching institution," "medical   and dental unit," and "public state college" have the meanings   assigned by Section 61.003.                (4)  "Pilot program" means the Texas Transfer Grant   Pilot Program established under this subchapter.                 (5)  "Transfer student" means a student who, at the   time the student is admitted to the eligible institution disbursing   the grant, has earned enough credit hours to no longer be considered   a first-time entering undergraduate student, as defined by   coordinating board rule.          Sec. 56.332.  PILOT PROGRAM. The Texas Transfer Grant Pilot   Program is a pilot program under which the coordinating board may   provide a grant to enable eligible students to attend eligible   institutions of higher education.          Sec. 56.333.  ADMINISTRATION OF PILOT PROGRAM. (a) The   coordinating board shall administer the pilot program and adopt any   rules necessary to implement the pilot program or this subchapter.   The coordinating board shall consult with the student financial aid   officers of eligible institutions in developing the rules.          (b)  The total amount of grants awarded under this subchapter   may not exceed the amount available for the program from   appropriations, gifts, grants, or other funds.          (c)  For each academic year during which eligible students   are enrolled at an eligible institution, the coordinating board   shall allocate to that institution the amount necessary to pay to   eligible students grants under this subchapter.          (d)  In determining who should receive a grant under this   subchapter, the coordinating board and the eligible institutions   shall give priority to awarding grants to students who demonstrate   the greatest financial need.          (e)  The coordinating board shall establish priorities for   awarding grant assistance as the board determines appropriate to   further the purpose of this subchapter in the event that in any year   the amount of money available for grant assistance under this   subchapter is insufficient to provide grant assistance to all   eligible students described by Section 56.334.          Sec. 56.334.  ELIGIBILITY FOR GRANT. (a) To be eligible for   a grant under the pilot program, a student must:                (1)  be a resident of this state as determined by   coordinating board rules;                (2)  meet financial need requirements as defined by the   coordinating board;                (3)  be enrolled in a baccalaureate degree program at   an eligible institution;                (4)  be enrolled as a transfer student for at least   three-fourths of a full course load for a student in a baccalaureate   program, as determined by the coordinating board;                (5)  have applied for any available financial aid or   assistance;                (6)  not be a recipient of a TEXAS Grant under   Subchapter M for the same semester or term;                (7)  make satisfactory academic progress toward a   baccalaureate degree, as determined by the coordinating board; and                (8)  comply with any additional nonacademic   requirement adopted by the coordinating board under this   subchapter.          (b)  A person is not eligible to receive a grant under this   subchapter if the person has been granted a baccalaureate degree.          (c)  The coordinating board shall by rule establish the   maximum semester credit hours, or semester credit hour equivalent,   for which an eligible student may receive a grant under this   subchapter.          (d)  If a student fails to meet any of the requirements   established by the coordinating board under Subsection (a)(7) after   the completion of any semester or term, the student may not receive   a grant under this subchapter during the next semester or term in   which the student enrolls. A student may become eligible to receive   a grant under this subchapter in a subsequent semester or term if   the student:                (1)  completes a semester or term during which the   student is not eligible for a grant; and                (2)  meets all the requirements established under   Subsection (a).          (e)  The coordinating board shall adopt rules to allow a   student who is otherwise eligible to receive a grant under this   subchapter, in the event of a hardship or for other good cause   shown, to receive a grant under this subchapter:                (1)  while enrolled in a number of semester credit   hours that is fewer than the number of semester credit hours   required under Subsection (a)(4);                (2)  if the student fails to meet the satisfactory   academic progress requirements established by the coordinating   board under Subsection (a)(7); or                (3)  for a number of semester credit hours that exceeds   the number of semester credit hours outlined in Subsection (c).          Sec. 56.335.  GRANT USE. A student receiving a grant under   this subchapter may use the money to pay any usual and customary   cost of attendance that is incurred by the student at an eligible   institution. The institution may disburse all or part of the   proceeds of a grant under this subchapter directly to an eligible   student only if the tuition and required fees incurred by the   student at the institution have been paid.          Sec. 56.336.  GRANT AMOUNT. (a) The maximum amount of a   grant under this subchapter for an eligible student enrolled   full-time at an eligible institution is the amount determined by   the coordinating board as the average statewide amount of tuition   and required fees that a resident student enrolled full-time in a   baccalaureate degree program would be charged for that semester or   term at eligible institutions.          (b)  The coordinating board shall determine the average   statewide tuition and fee amounts for a semester or term of the next   academic year for purposes of this section by using the amounts of   tuition and required fees that will be charged by the eligible   institutions for that semester or term in that academic year. The   coordinating board may estimate the amount of the charges for a   semester or term in the next academic year by an institution if the   relevant information is not yet available to the board.          (c)  The coordinating board may adopt rules that allow the   board to increase or decrease, in proportion to the number of   semester credit hours in which a student is enrolled, the amount of   a grant award under this section to a student who is enrolled in a   number of semester credit hours that exceeds or that is less than   the number of semester credit hours established under Section   56.334(a)(4).          (d)  The amount of a grant under this subchapter may not be   reduced by any gift aid for which the person receiving the grant is   eligible, unless the total amount of a person's grant plus any gift   aid received exceeds the student's total financial need at an   eligible institution.          (e)  An eligible institution may not:                (1)  unless the institution complies with Subsection   (g), charge a person attending the institution who also receives a   grant under this subchapter an amount of tuition and required fees   that exceeds the amount of the grant received by the person; or                (2)  deny admission to or enrollment in the institution   based on a person's eligibility to receive a grant or a person's   receipt of a grant under this subchapter.          (f)  An eligible institution may elect to award a grant under   this subchapter to any student in an amount that is less than the   applicable amount established under Subsection (a) or (e).          (g)  An eligible institution shall use other available   sources of financial aid, other than a loan, to cover any difference   in the amount of a grant awarded under this subchapter to the   student and the actual amount of tuition and required fees at the   institution if the difference results from:                (1)  a reduction in the amount of a grant under   Subsection (f); or                (2)  a deficiency in the amount of the grant as   established under Subsection (a) or (c), as applicable, to cover   the full amount of tuition and required fees charged to the student   by the institution.          (h)  The legislature in an appropriations act shall account   for tuition and required fees received under this section in a way   that does not increase the general revenue appropriations to that   institution.          Sec. 56.337.  REPORT. Not later than December 1 of each   even-numbered year, the coordinating board shall submit to the   legislature a report on the effectiveness of the pilot program. The   coordinating board shall include in the report a recommendation   regarding whether the pilot program should be continued, expanded,   or terminated.          Sec. 56.338.  EXPIRATION. This subchapter expires September   1, 2025.           SECTION 2.  (a) The Texas Higher Education Coordinating   Board shall adopt rules to administer the pilot program established   under Subchapter N, Chapter 56, Education Code, as added by this   Act, as soon as practicable after the effective date of this Act.          (b)  The Texas Higher Education Coordinating Board and   eligible institutions shall award initial grants under Subchapter   N, Chapter 56, Education Code, as added by this Act, beginning with   the 2022 spring semester.          SECTION 3.  The Texas Higher Education Coordinating Board is   required to implement this Act only if the legislature appropriates   money specifically for that purpose. If the legislature does not   appropriate money specifically for that purpose, the coordinating   board may, but is not required to, implement this Act using other   appropriations available for that purpose.          SECTION 4.  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.