By: Seliger, et al. S.B. No. 18     A BILL TO BE ENTITLED   AN ACT   relating to public institutions of higher education setting aside   portions of designated tuition for student financial assistance.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 56, Education Code, is   amended by adding Sections 56.0093 and 56.0094 to read as follows:          Sec. 56.0093.  REPORT REGARDING DESIGNATED TUITION SET ASIDE   FOR STUDENT FINANCIAL ASSISTANCE.  (a)  In this section,   "coordinating board" means the Texas Higher Education Coordinating   Board.          (b)  This section applies only to the governing board of an   institution of higher education that sets aside any portion of the   tuition charged by the institution to a resident student under   Section 54.0513 for the purpose of providing financial assistance   for resident students enrolled in an undergraduate, graduate, or   professional degree program at the institution.          (c)  Not later than August 31 of each year, the governing   board of an institution to which this section applies shall submit   to the coordinating board a written report regarding any tuition   set aside by the institution as described by Subsection (b) in the   preceding fall, spring, or summer term.  The report must include:                (1)  the amount of tuition set aside by the institution   as described by Subsection (b) for each applicable term;                (2)  the percentage of the total amount of tuition   charged by the institution under Section 54.0513 for each   applicable term that was set aside by the institution as described   by Subsection (b); and                (3)  the types of student financial assistance provided   using the funds set aside by the institution as described by   Subsection (b).          (d)  The coordinating board shall disseminate to each public   or accredited private high school in this state the information   provided in Subsection (c) in a way designed to educate high school   students and the parents of those students on available   opportunities and required preparation with respect to   institutions of higher education.          (e)  The coordinating board may adopt rules to administer   this section.          Sec. 56.0094.  NOTICE TO STUDENTS REGARDING TUITION SET   ASIDE FOR FINANCIAL ASSISTANCE.  (a)  An institution of higher   education that sets aside a portion of a student's tuition payments   to provide financial assistance for students enrolled in the   institution shall provide to each student of the institution who   pays tuition from which a portion is set aside for that purpose a   notice regarding the specific amount that is set aside by the   institution.          (b)  The institution shall provide the notice required by   Subsection (a) to the student in a prominently printed statement   that appears on or is included with:                (1)  the student's tuition bill or billing statement,   if the institution provides the student with a printed bill or   billing statement for the payment of the student's tuition; or                (2)  the student's tuition receipt, if the institution   provides the student with a printed receipt evidencing the payment   of the student's tuition.          (c)  If for any semester or other academic term the   institution does not provide the student with a printed tuition   bill, tuition billing statement, or tuition receipt, the   institution shall include the notice required by Subsection (a) for   that semester or other term in a statement prominently displayed in   an e-mail sent to the student.  The notice may be included in any   other e-mail sent to the student in connection with the student's   tuition charges for that semester or other term.          (d)  The Texas Higher Education Coordinating Board by rule   shall prescribe minimum standards for the manner, form, and content   of the notice required by this section.          SECTION 2.  Chapter 56, Education Code, is amended by adding   Subchapter U to read as follows:   SUBCHAPTER U. TEXAS STUDENTS FIRST GRANT PROGRAM          Sec. 56.641.  DEFINITIONS. In this subchapter:                (1)  "Coordinating board" means the Texas Higher   Education Coordinating Board.                (2)  "General academic teaching institution" has the   meaning assigned by Section 61.003.                (3)  "Eligible institution" means a general academic   teaching institution that satisfies the requirements of Section   56.644.                (4)  "Program" means the Texas Students First Grant   Program established under this subchapter.                (5)  "Tuition" includes:                      (A)  tuition for which the rates are prescribed by   Chapter 54; and                      (B)  tuition charged by a general academic   teaching institution under Section 54.0513 or another law   authorizing an institution to establish tuition rates.          Sec. 56.642.  PURPOSE. The purpose of the Texas Students   First Grant Program is to provide financial assistance to students   with financial need at general academic teaching institutions that   have successfully controlled tuition costs charged to students at   the institution.          Sec. 56.643.  ADMINISTRATION OF PROGRAM; PRIORITY FOR GRANT   AWARDS. (a)  The coordinating board shall:                (1)  administer the program;                (2)  adopt rules for determining the allocation of   funds under the program among eligible institutions; and                (3)  adopt any other rules necessary to implement the   program or this subchapter.          (b)  The coordinating board shall consult with the student   financial aid officers of eligible institutions in developing rules   adopted under Subsection (a).          (c)  In awarding grants under the program, priority shall be   given to eligible students whose cost for tuition and required fees   is not fully met through other non-loan financial assistance   programs.          Sec. 56.644.  ELIGIBLE INSTITUTIONS. (a)  A general   academic teaching institution is eligible to participate in the   program for an academic year only if the total amount of tuition   charged by the institution to each student for that academic year is   at least five percent less than the total amount of tuition that the   institution would have charged to a similarly situated student for   the 2017-2018 academic year.          (b)  For purposes of this section, students are similarly   situated if they share the same residency status, degree program,   course load, course level, tuition exemption status, and other   circumstances affecting the tuition charged to the student.          Sec. 56.645.  ELIGIBILITY FOR GRANT.  To be eligible for a   grant under the program, a person must:                (1)  be a resident of this state as determined by   coordinating board rules;                (2)  be enrolled as an undergraduate student at an   eligible institution;                (3)  meet financial need requirements as defined by   coordinating board rules;                (4)  comply with any additional requirement adopted by   the coordinating board under this subchapter; and                (5)  be eligible for federal financial aid, except that   a person is not required to meet any financial aid need requirement   applicable to a particular federal financial aid program.          Sec. 56.646.  GRANT USE. A person receiving a grant under   this subchapter may use the money only to pay the amount of tuition   and required fees and the cost of required textbooks incurred by the   student at an eligible institution.          Sec. 56.647.  GRANT AMOUNT. (a)  The coordinating board by   rule shall prescribe the maximum amount of a grant awarded to a   person under the program for a semester or other academic term.          (b)  The total amount of grants awarded under the program may   not exceed the amount available for the program from   appropriations, gifts, grants, or other funds.          Sec. 56.648.  FUNDING. (a)  The coordinating board may   solicit and accept gifts, grants, and donations from any public or   private source for the purposes of this subchapter.          (b)  The legislature may appropriate money for the purposes   of this subchapter.          SECTION 3.  Subchapter B, Chapter 56, Education Code, is   repealed.          SECTION 4.  The changes in law made by this Act apply   beginning with tuition charged for the 2018 spring semester.     Tuition charged for any semester or other academic term before the   2018 spring semester is covered by the applicable law as it existed   before the effective date of this Act, and the former law is   continued in effect for that purpose.          SECTION 5.  The Texas Higher Education Coordinating Board   shall adopt rules for the administration of Subchapter U, Chapter   56, Education Code, as added by this Act, as soon as practicable   after the effective date of this Act.          SECTION 6.  This Act takes effect September 1, 2017.