TITLE 19. EDUCATION

PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

CHAPTER 1. AGENCY ADMINISTRATION

SUBCHAPTER U. MARKETABLE SKILLS TASK FORCE

19 TAC §§1.230 - 1.236

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new Chapter 1, Subchapter U, §§1.230 - 1.236, concerning the establishment of a Marketable Skills Task Force. Specifically, these new sections will authorize the Board to establish a Marketable Skills Task Force to provide the Commissioner and the Board with guidance regarding the implementation of the strategies under the Marketable Skills goal of 60x30TX.

Dr. Rex C. Peebles, Assistant Commissioner for Academic Quality and Workforce, has determined that for the first five years there will be no fiscal implications for state or local governments as a result of adding the new sections. There would be minimal costs to public institutions of higher education to support the expenses of committee members who may travel to the Coordinating Board in Austin for meetings.

Dr. Peebles 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 better methods of implementation of the strategies under the Marketable Skills goal of 60x30TX. There would be minimal costs to public institutions of higher education to support travel and other expenses of committee members who may travel to the Coordinating Board in Austin for meetings. There is no impact on local employment. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will create new rules;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rules; and

(8) the rules will have no effect on this state's economy.

Comments on the proposal may be submitted to Rex C. Peebles, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas, 78711 or via email at AQWComments@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 Government Code, §2110.0012, which requires a state agency that establishes an advisory committee to adopt rules that state the purpose and tasks of the committee and describe the manner in which the committee will report to the agency.

The new sections affect the implementation of Texas Education Code, Chapter 61.

§1.230.Authority and Specific Purposes of the Marketable Skills Task Force.

(a) Authority. Statutory authority for this subchapter is provided in the Texas Government Code, 2110.0012.

(b) Purpose. The Marketable Skills Task Force is created to provide the Commissioner and the Board with guidance regarding the implementation of the strategies under the Marketable skills goal of 60x30TX.

§1.231.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) Marketable Skills--Those skills valued by employers that can be applied in a variety of work settings, including interpersonal, cognitive, and applied skill areas. These skills can be either primary or complementary to a major and are acquired by students through education, including curricular, co-curricular, and extracurricular activities.

(4) Institutions of Higher Education--As defined in Texas Education Code, Chapter 61.003(8).

§1.232.Committee Membership and Officers.

(a) The advisory committee shall be composed of representatives of business/industry, public service, non-profit organizations and/or appropriate associations.

(b) Board staff will recommend individuals for Board appointment.

(c) Members of the committee shall select co-chairs, who will be responsible for conducting meetings and conveying committee recommendations to the Board.

(d) The number of committee members shall not exceed twenty-four (24).

(e) Members shall serve staggered terms of up to four years. The terms of chairs and co-chairs (if applicable) will be two years dating from their election.

§1.233.Duration.

The Committee shall be abolished no later than August 30, 2023, in accordance with Texas Government Code, Chapter 2110. It may be reestablished by the Board.

§1.234.Meetings.

The Committee shall meet as necessary. Special meetings may be called as deemed appropriate by the presiding officer. Meetings shall be open to the public and broadcast via the web, unless prevented by technical difficulties, and minutes shall be available to the public after they have been prepared by the Board staff and reviewed by members of the Committee.

§1.235.Tasks Assigned to the Task Force.

Tasks assigned to the Committee include:

(1) Advise the Board regarding the Marketable Skills goal of 60x30TX;

(2) Provide Board staff with feedback about processes and procedures related to the Marketable Skills goal of 60x30TX; and

(3) Any other issues related to the Marketable Skills goal of 60x30TX as determined by the Board.

§1.236.Report to the Board; Evaluation of Committee Costs and Effectiveness.

The Committee shall report recommendations to the Board. The Committee shall also report Committee activities to the Board to allow the Board to properly evaluate the Committee work, usefulness, and the costs related to the Committee existence. The Board shall report its evaluation to the Legislative Budget Board in its biennial Legislative Appropriations Request.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902230

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER CC. FINANCIAL LITERACY ADVISORY COMMITTEE

19 TAC §§1.9521 - 1.9527

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of §§1.9521 - 1.9527, concerning Financial Literacy Advisory Committee. Specifically, the Financial Literacy Advisory Committee held its final meeting on November 7, 2017. Since the committee no longer exists, it is appropriate to repeal the rules.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the repeal is in effect, there will be no impact on the public. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rule will repeal existing §§1.9521 - 1.9527;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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 Texas Education Code, §61.026, which provides the Coordinating Board the authority to adopt rules, in compliance with Chapter 2110, Government Code, regarding an advisory committee including rules governing an advisory committee's purpose, tasks, reporting requirements, and abolishment date.

The repeal affects Texas Administrative Code §§1.19521 - 1.9527 and Texas Government Code 2110.008.

§1.9521.Authority and Specific Purposes of the Financial Literacy Advisory Committee.

§1.9522.Definitions.

§1.9523.Committee Membership and Officers.

§1.9524.Duration.

§1.9525.Meetings.

§1.9526.Tasks Assigned the Committee.

§1.9527.Report to the Board; Evaluation of Committee Costs and Effectiveness.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902201

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


CHAPTER 15. NATIONAL RESEARCH UNIVERSITIES

SUBCHAPTER C. NATIONAL RESEARCH UNIVERSITY FUND

19 TAC §15.43

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Chapter 15, Subchapter C, §15.43, concerning the eligibility criteria to receive distributions from the National Research University Fund. Specifically, the amendments will clarify: (a) in rule §15.43(b)(3)(C)(ii), a minimum 75th percentile score for the SAT effective with the fall 2017 semester, based on the concordance table for scores prior to and since fall 2017, as provided by the College Board (https://collegereadiness.collegeboard.org/educators/highered/scoring/concordance); (b) in rule §15.43(b)(3)(E)(i), corrected names for the academies that provide awards of national and international distinction to faculty; and (c) in rule §15.43(b)(3)(E)(ii), corrected names for faculty awards of distinction.

Dr. Rex C. Peebles, Assistant commissioner for Academic Quality and Workforce, has determined that for each year of the first five years the section is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Peebles has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the clarification of eligibility criteria for the National Research University Fund. 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 small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will have no effect on the state's economy.

Comments on the proposal may be submitted by mail to Rex C. Peebles, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas, 78711 or via email at AQWComments@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, Chapter 62, Subchapter G, §62.146, which provides the Coordinating Board with the authority to prescribe standard methods of reporting information for the purpose of determining the eligibility of institutions for the National Research University Fund.

The amendments affect Texas Education Code, Chapter 62, Subchapter G, National Research University Fund.

§15.43.Eligibility.

(a) (No Change.)

(b) A general academic teaching institution is eligible to receive an initial distribution from the Fund appropriated for each state fiscal year if:

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

(3) the institution satisfies at least four of the following six criteria:

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

(C) in each of the two academic years preceding the state fiscal year for which the appropriation is made, the entering freshman class of the institution demonstrated high academic achievement as reflected in the following criteria:

(i) At least 50 percent of the first-time entering freshman class students at the institution are in the top 25 percent of their high school class; or

(ii) The average SAT score of first-time entering freshman class students at or above the 75th percentile of SAT scores was equal to or greater than 1210 prior to fall 2017, [(] consisting of the Critical Reading (CR) and Mathematics (M) Components, [Sections)] or equal to or greater than 1280 starting with fall 2017, consisting of the Evidence-Based Reading and Writing (ERW) and Mathematics (M) Components), or the average ACT score of first-time entering freshman class students at or above the 75th percentile of ACT scores was equal to or greater than 26; and

(iii) The composition of the institution's first-time entering freshman class demonstrates progress toward reflecting the population of the state or the institution's region with respect to underrepresented students and shows a commitment to improving the academic performance of underrepresented students. One way in which this could be accomplished is by active participation in one of the Federal TRIO Programs, such as having one or more McNair Scholars in a particular cohort.

(D) (No change.)

(E) in each of the two academic years preceding the state fiscal year for which the appropriation is made, the faculty of the institution was of high quality as reflected in the following:

(i) There must be five or more recognitions [The cumulative number] of national or international distinction of [distinctions] tenured/tenure-track faculty [achieved ] through membership in [recognition as a member of] one of the National Academies (including National Academy of Sciences [Science], National Academy of Engineering, [Academy of Arts and Sciences,] and National Academy [Institute] of Medicine), the American Academy of Arts and Sciences, or through receiving a [are] Nobel Prize [recipients is equal to or greater than 5 for each year]; or

(ii) The annual number of awards of national and international distinction received by tenured/tenure-track faculty during a given academic year in any of the following categories is equal to or greater than 7 for each year.

(I) American Academy of Nursing Fellows [Member]

(II) American Council of Learned Societies [(ACLS)] Fellows

(III) American Law Institute Members

(IV) Beckman Young Investigators

(V) Burroughs Wellcome Fund Career Award Winners [Awards]

(VI) Cottrell Scholars

(VII) Getty Scholars in Residence

(VIII) Guggenheim Fellows

(IX) Howard Hughes Medical Institute Investigators

(X) Lasker Medical Research Award Winners [Awards]

(XI) MacArthur Foundation Fellows

(XII) Andrew W. Mellon Foundation Distinguished Achievement Award Winners [Awards]

(XIII) National Endowment for the Humanities [(NEH)] Fellows

(XIV) National Humanities Center Fellows

(XV) National Institutes of Health [(NIH)] MERIT (R37) Winners

(XVI) National Medal of Science Winners [and National Medal of Technology winners]

(XVII) National Medal of Technology and Innovation Winners

(XVIII) [(XVII)] National Science Foundation [NSF] CAREER Award Winners [ winners] (excluding those who are also PECASE winners)

(XIX) [(XVIII)] Newberry Library Long-term Fellows

(XX) [(XIX)] Pew Scholars in Biomedicine

(XXI) [(XX)] Pulitzer Prize Winners

(XXII) [(XXI) Winners of the] Presidential Early Career Awards for Scientists and Engineers (PECASE)Winners

(XXIII) [(XXII)] Robert Wood Johnson Health Policy Fellows

(XXIV) [(XXIII)] Searle Scholars

(XXV) [(XXIV)] Sloan Research Fellows

(XXVI) [(XXV)] Fellows of the Woodrow Wilson Center [Fellows]

(iii) In lieu of meeting either clause (i) or (ii) of this subparagraph, an institution may request that a comprehensive review of the faculty in five of the institution's Doctoral degree programs be conducted by external consultants selected by Coordinating Board staff in consultation with the institution and said review must demonstrate that the faculty are comparable to and competitive with faculty in similar programs at public institutions in the Association of American Universities. Costs for the review shall be borne by the institution. This review is only available if the institution has already met or, as determined by Coordinating Board staff, is on track to meet three of the other eligibility criteria listed in subparagraphs (A) - (D) of this paragraph;

(F) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902204

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


CHAPTER 22. STUDENT FINANCIAL AID PROGRAMS

SUBCHAPTER A. GENERAL PROVISIONS

19 TAC §22.1

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Chapter 22, Subchapter A, §22.1, concerning General Provisions. Amendments to §22.1 concerning "Definitions" move definitions from subchapters for specified student financial aid programs in this Chapter to Subchapter A. By moving these definitions to Subchapter A, General Provisions, the definitions appearing in the Texas Administrative Code for separate programs are centralized within the chapter. The amendment to §22.1 subparagraph (18) clarifies that "Half-Time" enrollment is the equivalent of at least six but fewer than nine semester credit hours per regular semester, and the amendment to §22.1(24) clarifies that "Three-Quarter-Time," is the equivalent of at least nine but not fewer than 12 semester credit hours per semester. The amendments take into consideration summer awards. The section has been renumbered accordingly.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rules are in effect, the public benefit anticipated as a result of this proposal will be the institutions' improved ability for administration of financial aid services and to better meet the needs of their student populations. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will expand existing rule §22.1;

(7) the rules will not change the number of individuals subject to the rules; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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 Government Code, §2001.004, which authorizes the Coordinating Board to adopt rules stating the nature and requirements of administrative practices and procedures.

The amendment affects Texas Administrative Code §22.1.

§22.1.Definitions.

The following words and terms, when used in Chapter 22, shall have the following meanings, unless otherwise defined in a particular subchapter:

(1) Academic year--A twelve-month period designated by an eligible institution as its financial aid award year.

(2) Attempted Semester Credit Hours--Every course in every semester for which a student has been registered as of the official Census Date, including but not limited to, repeated courses and courses the student drops and from which the student withdraws. For transfer students, transfer hours and hours for optional internship and cooperative education courses are included if they are accepted by the receiving institution towards the student's current program of study.

(3) Awarded--Offered to a student.

(4) [(1)] Board or Coordinating Board--The Texas Higher Education Coordinating Board.

(5) [(2)] Board Staff--The staff of the Texas Higher Education Coordinating Board.

(6) [(3)] Categorical Aid--Gift aid that the institution does not award to the student, but that the student brings to the school from a non-governmental third party.

(7) [(4)] Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(8) [(5)] Cost of Attendance/Total Cost of Attendance--An institution's estimate of the expenses incurred by a typical financial aid recipient in attending a particular institution of higher education. It includes direct educational costs (tuition and fees) as well as indirect costs (room and board, books and supplies, transportation, and personal expenses, and other allowable costs for financial aid purposes).

(9) Degree or certificate program of four years or less--A baccalaureate degree or certificate program other than a program determined by the Board to require more than four years to complete.

(10) Degree or certificate program of more than four years--A baccalaureate degree or certificate program determined by the Board to require more than four years to complete.

(11) Encumber--Program funds that have been officially requested by an institution through procedures developed by the Coordinating Board.

(12) 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.

(13) [(6)] Expected Family Contribution (EFC)--A measure of how much the student and his or her family can be expected to contribute to the cost of the student's education for the year as determined following the federal methodology.

(14) [(7)] 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 Expected Family Contribution are to be determined in accordance with Board guidelines.

(15) [(8)] Full-Time--For undergraduate students, enrollment or expected enrollment for the equivalent of twelve or more semester credit hours per [regular] semester [or term]. For graduate students, enrollment or expected enrollment for the normal full-time course load of the student's program of study as defined by the institution.

(16) [(9)] Gift Aid--Grants, scholarships, exemptions, waivers, and other financial aid provided to a student without a requirement to repay the funding or earn the funding through work.

(17) Graduate student--A student who has been awarded a baccalaureate degree and is enrolled in coursework leading to a graduate or professional degree.

(18) [(10)] Half-Time--For undergraduates, enrollment or expected enrollment for the equivalent of at least six but fewer than nine [or more] semester credit hours per regular semester. For graduate students, enrollment or expected enrollment for the equivalent of 50 percent of the normal full-time course load of the student's program of study as defined by the institution.

(19) Period of enrollment--The semester or semesters within the current state fiscal year (September 1-August 31) for which the student was enrolled in an approved institution and met all eligibility requirements for an award through this program.

(20) [(11)] 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 the determination of student eligibility, selection of recipients, maintenance of all records, and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the institution's chief executive officer, the director of student financial aid shall serve as Program Officer.

(21) Residency Core Questions--A set of questions developed by the Coordinating Board to be used to determine a student's eligibility for classification as a resident of Texas, available for downloading from the Coordinating Board's website, and incorporated into the ApplyTexas application for admission.

(22) [(12)] 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). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

(23) Semester--A payment period, as defined by 34 CFR 668.4(a) or 34 CFR 668.4(b)(1).

(24) [(13)] Three-Quarter-Time--For undergraduate students, enrollment or expected enrollment for the equivalent of at least nine but fewer than 12 [or more] semester credit hours per [regular] semester. For graduate students, enrollment or expected enrollment for the equivalent of 75 percent of the normal full-time course load of the student's program of study as defined by the institution.

(25) [(14)] Timely Distribution of Funds--Activities completed by institutions of higher education related to the receipt and distribution of state financial aid funding from the Board and subsequent distribution to recipients or return to the Board.

(26) Undergraduate student--An individual who has not yet received a baccalaureate degree.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902207

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


19 TAC §§22.9 - 22.11

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the addition of new §§22.9 - 22.11 in Chapter 22, Subchapter A, concerning General Provisions.

New §22.9, concerning "Institutional Responsibilities," moves and centralizes rules from individual aid programs in this Chapter to Subchapter A and provides guidelines to institutions of higher education concerning probation notice, disbursements to students, reporting and deadline requirements, and program reviews for financial aid programs within the chapter.

New §22.10, concerning "Grade Point Average (GPA) Calculations for Satisfactory Academic Progress," describes the institutional responsibility for determining a student's GPA at the end of the student's academic year. New §22.10(c) and (d) provide guidelines to institutions of higher education for grant recipients whose GPAs fall below program requirements at the end of an academic year, or transfer students whose GPAs fall below program requirements. This new rule combines concepts used throughout the chapter for individual aid programs and takes into consideration summer awards.

New §22.11, concerning "Provisions specific to the Toward EXcellence, Access, and Success (Texas) Grant Program, Texas Educational Opportunity Grant Program (TEOG), Tuition Equalization Grant Program (TEG), and Texas College Work-Study Programs (TCWS)," combines concepts used throughout the chapter for individual aid programs and takes into consideration summer awards. The new rule provides instructions to institutions of higher education concerning: Funding; Authority to transfer funds; Award uses; Over-awards; Award adjustments; Re-awarding of funds; and Late disbursements.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, the public benefit anticipated as a result of this proposal will be that the institutions' improved ability for administration of financial aid services and to better meet the needs of their student populations. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, or rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will create new rules §§22.9 - 22.11;

(6) the rule will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new rules are proposed under the Texas Government Code, §2001.004, which authorizes the Coordinating Board to adopt rules stating the nature and requirements of administrative practices and procedures.

The new rules affect Texas Administrative Code §§22.9 - 22.11.

§22.9.Institutional Responsibilities.

(a) Probation Notice. If the institution is placed on probation by its accrediting agency, it must immediately notify Board staff and advise state financial aid recipients of this condition and maintain evidence to demonstrate that state financial aid program recipients were so informed.

(b) Disbursements to Students.

(1) Documentation. The institution must maintain records to prove the crediting of state financial aid program funds to the student's school account.

(2) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed state financial aid program funds for unauthorized purposes, Board staff will notify the Program Officer and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if Board staff determine that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of funds from the program in question shall be permitted to students at that institution until the funds have been repaid.

(c) Reporting Requirements/Deadlines. All institutions must submit such reports and information as the Board may require in connection with the administration or evaluation of the state financial aid programs. These materials must be submitted within the time allotted by THECB for each such report or information request. The Program officer agrees that all reports and information provided to the Board shall reflect properly the facts and those reports may be relied upon as being complete and accurate.

(d) Program Reviews. If selected for such by Board staff, participating institutions must submit to program reviews of activities related to state financial aid programs.

§22.10.Grade Point Average Calculations for Satisfactory Academic Progress.

(a) Grade point average calculations shall be made in accordance with institutional policies.

(b) For purposes of Satisfactory Academic Progress, a recipient's GPA is calculated at the end of the student's academic year.

(c) A grant recipient whose GPA is below program grade point average requirements as of the end of an academic year may appeal his/her grade point average calculation if he/she has taken courses previously at one or more institutions. In the case of such an appeal, the current institution (if presented with transcripts from the previous institutions), shall calculate an overall grade point average counting all classes and grade points previously earned. If the resulting grade point average exceeds the program's academic progress requirement, an otherwise eligible student may receive an award in the following academic year.

(d) If a grant recipient's grade point average falls below program requirements and the student transfers to another institution, or has transferred from another institution, the receiving institution cannot make a subsequent award to the transfer student until the student provides official transcripts of previous coursework to the current institution's financial aid office and the institution re-calculates an overall grade-point average, including hours and grade points for courses taken at the previous and current institutions, that proves the student's overall grade point average now meets or exceeds program requirements.

§22.11.Provisions specific to the TEXAS Grant, TEOG, TEG, and Texas Work-Study Programs.

(a) Funding. Funds awarded through this program may not exceed the amount of appropriations, gifts, grants and other funds that are available for this use (§56.303(c) and 56.403(c), Texas Education Code).

(b) Authority to Transfer Funds. Institutions participating in a combination of the Toward EXcellence, Access and Success Grant, Texas Educational Opportunity Grant, Tuition Equalization Grant, and Texas College Work-Study Programs, in accordance with instructions from the Board, may transfer current fiscal year funds up to the lesser of 10 percent or $20,000 between these programs. This threshold applies to the program from which the funds are transferred. Such transfers must occur by July 1 of the current fiscal year.

(c) Award Uses. No state grant or work-study funding may be used for any purpose other than paying for any usual and customary cost of attendance incurred by the student related to enrollment at a participating institution of higher education for the academic year for which funding was awarded.

(d) Over Awards. If, at a time after the award has been disbursed by the institution to the student, the student receives assistance that was not taken into account in the institution's estimate of the student's financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.

(e) Award adjustments. If a student officially withdraws from enrollment, the institution shall follow its general institutional refund policy in determining the amount by which the financial aid is to be reduced. If the student withdraws or drops classes after the end of the institution's refund period, no refunds are due to the program. If for some other reason the amount of a student's disbursement exceeds the amount the student is eligible to receive, the financial aid should be recalculated accordingly.

(f) Re-awarding of funds. Funds made available from award adjustments may be re-awarded to other eligible students attending the institution. If funds cannot be re-awarded, they should be returned to the Board in accordance with §22.2 of this subchapter (relating to Timely Distribution of Funds).

(g) Late Disbursements.

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

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

(B) Received a student loan that is still outstanding for the period of enrollment.

(2) Funds that are disbursed after the end of the student's period of enrollment must be used 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.

(3) Documentation must be retained by the institution, proving the late-disbursed funds were used to make a payment against an outstanding balance at the institution from the relevant period of enrollment and/or to make a payment against an outstanding loan taken out for the period of enrollment.

(4) Unless granted an extension by the staff of the Coordinating Board, late disbursements must be processed prior to the end of the state fiscal year for which the funds were allocated to the institution.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902208

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER B. PROVISIONS FOR THE TUITION EQUALIZATION GRANT PROGRAM

19 TAC §§22.21 - 22.28

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §§22.21 - 22.28, concerning the Provisions for the Tuition Equalization Grant Program. Specifically, the amendment to §22.21(b) strikes the reference to "eligible nonresidents" from the rule, as the rider allowing this provision was removed during the 85th Texas Legislature, Regular Session.

The amendments to §22.22 concerning "Definitions" remove redundant terms and others are proposed to be moved to Subchapter A, General Provisions. These definitions are commonly found throughout the Texas Administrative Code and moving them to Chapter 22, Subchapter A, centralizes these definitions within the chapter. The amendment to §22.22(3) clarifies the definition of "Adjusted gross need" by replacing the stricken word "gross" with "financial." The amendment to renumbered §22.22(12) combines the definitions for "Exceptional Financial need" and "Exceptional TEG need" into one definition. Each of these amendments improves the clarity of the definitions. The amendments to renumbered §22.22(3) replace all references to "First TEG" with "First award." This section has been renumbered to accommodate the changes.

The amendment to §22.23 adds the word "Eligible" to the section title. §22.23(a)(2) is amended by adding the term "participating" institutions to align with other language used throughout the rule. §22.23(a)(3) is amended to align language with Texas Education Code §61.223. New §22.23(a)(6) adds provisions regarding the eligibility of private institutions that are no longer accredited as outlined in §22.23(a)(1) pursuant to Senate Bill 1680, 86th Texas Legislature, Regular Session. The amendments to §22.23(b)(1) and (2) add language that clarifies the terms of the agreement by which an institution can participate in the TEG Program. Specifically, §22.23(b)(2) is amended by striking language regarding the approval deadline. The new language provides the date by which an institution must indicate its "intent to participate" in the TEG Program because allocations for both years of the biennium are now provided at the start of the biennium. §22.23(c) regarding "Responsibilities" has been deleted from this section and language referencing the location of the provisions regarding institutions' responsibilities has been added.

The amendments to §22.24 remove from the section title, and from subsequent subsections, the outdated reference to "Provisions that Apply Only to 2006 Revised TEG Program Students" and replaces the section title with "Eligible Students." §22.24(a)(3) adds the correct rule reference to the subchapter and the previous reference has been stricken from the rule. The amendment to §22.24(a)(5) corrects the word "associate's" and replaces it with "associate."

The amendments to §22.25 rename the section title to "Satisfactory Academic Progress" and remove the previous name, "Provisions that Apply Only to Original TEG Program Students." New language added to this section outlines the academic progress requirements for first and subsequent award year recipients; the previous language has been deleted from this section.

The amendments to §22.26 rename the section title to "Discontinuation of Eligibility or Non-Eligibility." The previous section title, "Award Amounts and Uses," has been deleted. Amendments to §22.26 add new language providing the circumstances for which an undergraduate or graduate student's eligibility would discontinue or become non-eligible. Previous language relating to award amounts and uses has been deleted from this section and proposed to be moved to §22.28.

The amendments to §22.27 rename the section title to "Hardship Provisions" and deletes the previous title, "Adjustments to Awards." New language added to §22.27 outlines the criteria for a student to receive a TEG in the event of a hardship or other good cause. Previous language relating to adjustments to awards has been deleted from this section and proposed to be moved to §22.28.

The amendments to §22.28 rename the section title to "Award Amounts and Adjustments" and remove the old section title, "Late Disbursements." New language aligns the rule with Texas Education Code, Section §61.227(e) and old language concerning late disbursements is deleted from this section and moved to Subchapter A of this chapter.

Charles W. Puls, Ed.D., Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, the public benefit will be improved understanding of the TEG program rules. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rule will not repeal or expand existing rules;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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, §61.229, which provides the Coordinating Board with the authority to adopt rules for the administration of the Tuition Equalization Grant Program.

The amendment affects Texas Administrative Code §§22.21 - 22.28.

§22.21.Authority and Purpose.

(a) (No change.)

(b) Purpose. The purpose of the Tuition Equalization Grant (TEG) Program is to promote the best use of existing educational resources and facilities within this state, both public and private, by providing need-based grants to Texas residents [and eligible nonresidents] enrolled in any approved private or independent Texas college or university.

§22.22.Definitions.

In addition to the words and terms defined in §22.1 of this title (relating to Definitions) the [The] following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

[(1) 2006 Revised TEG Program--The TEG program as authorized in statute as amended by the 79th Texas State Legislature in 2005 and which applies to students who are awarded their first TEG on or after September 1, 2005.

(2) Academic year--A twelve-month period designated by an eligible institution as its financial aid award year.]

(1) [(3)] Adjusted gross need--An amount equal to a student's financial [gross] need less the amount of his or her Federal Pell Grant and any categorical aid the student might have brought to the institution.

[(4) Awarded--Offered to a student.]

[(5) Board--The Texas Higher Education Coordinating Board.]

[(6) Categorical aid-Aid other than veterans benefits that the institution does not award to the student, but that the student brings to the school from a third party.]

[(7) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.]

[(8) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).]

[(9) Degree or certificate program of four years or less--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 to complete.]

[(10) Degree or certificate program of more than four years--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.]

[(11) Encumbered Funds - Funds ready for disbursal to the institution, based on the institution having submitted to the Board the required documentation to request funds.]

[(12) Enrollment on at least a half-time basis--For undergraduate students, enrolled for the equivalent of six or more semester credit hours per regular semester. For graduate students, enrolled for the equivalent of 4.5 or more semester credit hours per regular semester or enrolled for 50 percent of the normal full-time load of the student's program of study.]

[(13) Enrollment on at least a three-fourths or three-quarters basis--For undergraduate students, enrolled for the equivalent of nine or more semester credit hours per regular semester. For graduate students, enrolled for the equivalent of six or more semester credit hours per regular semester or enrolled for 75 percent of the normal full-time load of the student's program of study.]

[(14) Exceptional Financial need--The need an undergraduate student has if his or her expected family contribution is less than or equal to $1000.]

(2) [(15)] Exceptional TEG need--An additional amount of TEG funds for which an undergraduate student may qualify on the basis of having an expected family contribution generated through the use of the federal methodology, less than or equal to $1,000 [the amount specified by the Board in accordance with Texas Education Code, §61.227(e)].

[(16) 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.]

[(17) 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.]

(3) [(18)] First [TEG or first] award--The first Tuition Equalization Grant ever awarded to and received by a specific student.

(4) [(19)] Forecast--[-] The FORECAST function in Microsoft Excel.

[(20) Full-time enrollment--For undergraduate students, enrollment for the equivalent of twelve or more semester credit hours per regular semester or term. For graduate students, enrollment for the equivalent of nine or more semester credit hours per regular semester or term or the normal full-time load of the student's program of study.]

[(21) Graduate student--A student who has been awarded a baccalaureate degree and is enrolled in coursework leading to a graduate or professional degree.]

[(22) Gross need--An amount equal to a student's cost of attendance less expected family contribution generated through the use of the federal methodology.]

[(23) Original TEG Program--The TEG program as authorized by statute prior to amendments adopted by the 79th Texas State Legislature in 2005 and which applies to students who were awarded their first TEG prior to September 1, 2005, including students awarded their first TEG prior to September 1, 2005 for the 2005-2006 academic year.]

[(24) Period of enrollment--The semesters or terms within an academic year for which the student was enrolled in an approved institution and met all the eligibility requirements for an award through this program.]

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

(6) [(26)] 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).

[(27) 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 the selection of recipients, 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.]

(7) [(28)] Program or TEG--The Tuition Equalization Grant Program.

[(29) Regular semester--A fall or spring semester, typically of 16 weeks duration.]

(8) [(30)] Religious ministry--Roles serving as clergy, religious leaders or similar positions within any sect or religious society, as demonstrated through ordination, licensure to preach, or other mechanisms particular to a given sect or society that are used to identify clergy, religious leaders or such similar positions.

[(31) Residency Core Questions--A set of questions developed by the Coordinating Board to be used to determine a student's eligibility for classification as a resident of Texas, available for downloading through the Coordinating Board's website and incorporated into the ApplyTexas application for admission.]

[(32) 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). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.]

(9) [(33)] Subsequent award--A TEG grant received in any academic year other than the year in which an individual received his or her first TEG award.

(10) [(34)] TEG need--The basic amount of TEG funds that an eligible student could receive, subject to the limit in Texas Education Code §61.227(c).

[(35) Total TEG need--The total amount of TEG funds that eligible students at an approved institution could receive if the program were fully funded.]

(11) [(36)] 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.

[(37) Undergraduate student--An individual who has not yet received a baccalaureate degree.]

§22.23.Eligible 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 a branch campus of a private or independent institution of higher education located in Texas and accredited on its own or with its main campus institution by the Commission on Colleges of the Southern Association of Colleges and Schools, other than theological or religious seminaries, is eligible to participate in the TEG Program.

(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 institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-352) in avoiding discrimination in admissions or employment.

(4) - (5) (No change.)

(6) A private or independent institution of higher education that previously qualified under paragraph (1) of this subsection but no longer holds the same accreditation as public institutions of higher education may participate in the TEG Program if it is:

(A) accredited by an accreditor recognized by the Board in accordance with Texas Administrative Code, §7.6 of this title (relating to Recognition of Accrediting Agencies);

(B) a work college, as that term is defined by 20 U.S.C. §1087-58; and

(C) participating in the federal financial aid program under 20 U.S.C. §1070(a).

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, prior to being approved to participate in the program, the terms of which shall be prescribed by the Commissioner or his/her designee.

(2) Intent to Participate. An eligible institution interested in participating in the Program must indicate this intent by June 1 of each odd-numbered year in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal biennium. [Approval Deadline. An institution must enter into an agreement with the Board and indicate an intent to participate in the program by February 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.]

(c) Responsibilities. Participating institutions are required to abide by the General Provisions outlined in Chapter 22, Subchapter A of this title (relating to General Provisions).

[(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately notify Board staff and advise grant recipients of this condition and maintain evidence to demonstrate that the student was so informed.]

[(2) Disbursements to Students.]

[(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.]

[(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, Board staff will notify the institution and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if Board staff determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of grants or scholarships shall be permitted to students at that institution until the funds have been repaid.]

[(3) Reporting Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion]

[(A) Such reporting requirements shall include but are not limited to reports specific to allocation and reallocation of grant funds (including the TEG Need Survey, the TEG year-end student-by-student report, the Coordinating Board's Education Data Center CBM001 and CBM009 reports, and the Financial Aid Database Report) as well as progress reports of program activities.]

[(B) Each participating institution shall have its TEG Program operations audited on an annual basis by an independent auditor or by an internal audit office that is independent of the financial aid and disbursing offices. Reports on findings and corrective action plans (if necessary) are due to the Board by April 15 eachyear.]

[(4) Program Reviews. If selected for such by Board staff, participating institutions must submit to program reviews of activities related to the TEG Program.]

§22.24.Eligible Students [Provisions that Apply Only to 2006 Revised TEG Program Students].

[(a)] Eligible Students. To receive an award through the TEG Program, a [2006 Revised TEG Program] student must:

(1) be enrolled on at least a three-fourths of full-time enrollment;

(2) show financial need;

(3) maintain satisfactory academic progress in his or her program of study as determined by the institution at which the person is enrolled and as required by §22.25 of this title (relating to Satisfactory Academic Progress) [subsection (b) of this section];

(4) be a resident of Texas as determined based on data collected using the Residency Core Questions and in keeping with Chapter 21, Subchapter B of this title (relating to Determination of Resident Status);

(5) be enrolled in an approved institution in an individual degree plan leading to a first associate [associate's] degree, first baccalaureate degree, first master's degree, first professional degree, or first doctoral degree, but not in a degree plan that is intended to lead to religious ministry;

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

[(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]

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

[(9) be awarded his or her initial TEG grant on or after September 1, 2005.].

[(b) Continued Eligibility.]

[(1) Eligibility at End of First Year Award. 2006 Revised TEG Program students who complete their first year receiving a Tuition Equalization Grant in compliance with their institutions' financial aid academic progress requirements are eligible to receive subsequent awards in the following year if they meet the other requirements listed in subsection (a) of this section.]

[(2) Satisfactory Academic Progress. 2006 Revised TEG Program students shall, unless granted a hardship postponement in accordance with subsection (e) of this section, as of the end of an academic year in which the student receives a subsequent award:]

[(A) have completed at least:]

[(i) for undergraduates, 24 semester credit hours in the most recent academic year, or if at the end of the academic year in which the student receives a first award and the student entered college at the beginning of the spring term in the year in which he or she received his or her first award, have completed at least 12 semester credit hours in the most recent academic year; or]

[(ii) for graduate students, 18 semester credit hours in the most recent academic year;]

[(B) have an overall cumulative grade-point average of at least 2.5 on a four-point scale or its equivalent for all coursework attempted at a public, private, or independent institution;]

[(C) have completed at least 75 percent of the semester credit hours attempted in the most recent academic year; and]

[(D) meet the requirements listed in subsection (a) of this section.]

[(c) Grade Point Average Calculations. 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, or has transferred from another institution, the receiving institution cannot make a subsequent award to the transfer student until the student provides official transcripts of previous coursework to the new institution's financial aid office and the institution 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.]

[(d) End of Eligibility.]

[(1) Unless granted a hardship extension in keeping with subsection (e) of this section, an undergraduate 2006 Revised TEG Program student shall no longer be eligible for a TEG as of:]

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

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

[(2) A graduate student may continue to receive grants as long as he or she meets the relevant eligibility requirements of subsections (a) and (b) of this section.]

[(e) Hardship.]

[(1) In the event of a hardship or for other good cause, the Program Officer at an eligible institution may allow an otherwise eligible student to receive a TEG while:]

[(A) enrolled less than three-quarter of full-time enrollment;]

[(B) if the student's grade point average, number of hours completed, or percent of attempted hours completed falls below the satisfactory academic progress requirements as referred to in subsection (b) of this section; or]

[(C) if the student has taken more time to complete his/her certificate or degree than specified in subsection (d) of this section.]

[(2) Hardship conditions or other good cause may include, but are not limited to:]

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

[(B) 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]

[(C) a student's need to complete fewer than the required minimum number of 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 in keeping with §22.26(g) of this title (relating to Award Amounts and Uses).]

(3) Each institution shall adopt a hardship policy under this section and have the policy available in writing in the financial aid office for public review upon request.

§22.25.Satisfactory Academic Progress [ Provisions that Apply Only to Original TEG Program Students].

(a) Eligibility at End of First Award Year. Students who complete their first year receiving a Tuition Equalization Grant in compliance with their institutions' financial aid satisfactory academic progress requirements, are eligible to receive subsequent awards in the following year if they meet the other requirements listed in §22.24 of this title (relating to Eligible Students).

(b) Eligibility at End of a Subsequent Award Year. Students shall, unless granted a hardship provision postponement in accordance with §22.27 of this title (relating to Hardship Provisions), as of the end of an academic year in which the student receives a subsequent award:

(1) have completed at least:

(A) for undergraduate students, 24 semester credit hours in the most recent academic year, or if at the end of the academic year in which the student receives a first award and the student entered college at the beginning of the spring term in the year in which he or she received his or her first award, have completed at least 12 semester credit hours in the most recent academic year; or

(B) for graduate students, 18 semester credit hours in the most recent academic year;

(2) have an overall cumulative grade-point average of at least 2.5 on a four-point scale or its equivalent;

(3) have completed at least 75 percent of the semester credit hours attempted in the most recent academic year.

(c) The calculation of a student's GPA is to be completed in accordance with Chapter 22, Subchapter A of this title (relating to General Provisions).

(d) The completion rate calculations may be made in keeping with institutional policies.

(a) [(1) be enrolled on at least a half-time of full-time enrollment;]

[(2) show financial need;]

[(3) maintain satisfactory academic progress in his or her program of study as determined by the institution at which the person is enrolled;]

[(4) be a resident of Texas as determined based on data collected using the Residency Core Questions and in keeping with Chapter 21, Subchapter B of this title (relating to Determination of Resident Status);]

[(5) be enrolled in an approved institution in an individual degree plan leading to a first associate's degree, first baccalaureate degree, first master's degree, first professional degree, or first doctoral degree, but not in a degree plan that leads to ordination, licensure to preach or a career in church work;]

[(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 similarly situated students enrolled at the institution;]

[(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) not be a recipient of any form of athletic scholarship during the semester or semesters he or she receives a TEG; and]

[(9) have been awarded his or her first TEG grant prior to September 1, 2005.]

[(b) End of Eligibility. An undergraduate or graduate student who was awarded first TEG prior to the 2005-2006 academic year or before September 1, 2005, for the 2005-2006 academic year may continue to receive grants as long as he or she meets the relevant eligibility requirements of subsection (a) of this section.]

[(c) Expiration of Rules. This section expires as of January 1, 2016.]

§22.26.Discontinuation of Eligibility or Non-Eligibility [Award Amounts and Uses].

(a) Discontinuation of Eligibility.

(1) Unless granted a hardship provision in accordance with §22.27 of this title (relating to Hardship Provisions), an undergraduate student shall no longer be eligible for a TEG as of:

(A) the fifth anniversary of the first award of a TEG to the student, if the student is enrolled in a degree or certificate program of four years or less; or

(B) the sixth anniversary of the first award of a TEG to student, if the student is enrolled in a degree or certificate program of more than four years.

(2) A graduate student may continue to receive grants as long as he or she meets the relevant eligibility requirements of §22.24 and §22.25 of this title (relating to Eligible Students and Satisfactory Academic Progress respectively).

(b) Other than as described in §22.27 of this title, if a person fails to meet any of the requirements for receiving an award as outlined in §22.24 or §22.25 of this title after completion of any year, the person may not receive a TEG until he or she completes a semester of at least three-quarter-time enrollment while not receiving a TEG and meets all the requirements of §22.24 or §22.25 of this title as of the end of that semester.

[(a) Funding. Funds awarded through this program may not exceed the amount appropriated by the Legislature for that purpose.]

[(b) Award Amount.]

(1) Each academic year, no TEG award shall exceed the least of:]

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

[(B) the student's tuition differential; or]

[(C) the program maximum.]

[(2) A grant to a part-time student whose first TEG was awarded prior to September 1, 2005 or to any student enrolled for a limited number of hours due to imminent graduation or to a student with limited need shall be made on a pro rata basis of a full-time award in keeping with subsection (g) of this section.]

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

[(d) Uses. No grant disbursed to a student may be used for any purpose other than for meeting the cost of attending an approved institution.]

[(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 or tuition differential for that term or semester or the program maximum for the academic year, whichever is the least.]

[(f) Over Awards. If, at a time after the award has been disbursed by the institution to the student, the student receives assistance that was not taken into account in the institution's estimate of the student's financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.]

[(g) Prorated Awards.]

[(1) Awards to undergraduate students enrolling in fewer than the required number of hours in a given semester due to fewer hours needed for graduation shall be prorated based on the following schedule:]

[(A) If enrolled for the equivalent of 9 or more hours in a regular semester or 75% or more of the normal full-time enrollment of the undergraduate student's program of study--100% of the maximum award;]

[(B) If enrolled for the equivalent of 6-8 hours in a regular semester--50% of the maximum award; and]

[(C) If enrolled for the equivalent of fewer than 6 hours in a regular semester--25% of the maximum award.]

[(2) Awards to graduate students enrolling in fewer than the required number of hours in a given semester due to fewer hours needed for graduation shall be prorated based on the following schedule:]

[(A) If enrolled for the equivalent of 7 or more hours in a regular semester or 75% or more of the normal full-time enrollment of the graduate student's program of study--100% of the maximum award;]

[(B) If enrolled for the equivalent of 5-6 hours in a regular semester or 50 percent of the normal full-time enrollment of the student's program of study--50% of the maximum award; and]

[(C) If enrolled for fewer than 5 hours in a regular semester or less than 50 percent of the normal full-time enrollment of the student's program of study--25% of the maximum award.]

[(3) At institutions with regular semesters, awards to a 2006 Revised TEG Program student who is enrolled for a limited number of hours due to a hardship as referred to in §22.24(e) of this title (relating to Provisions that Apply Only to 2006 Revised TEG Program Students) shall be made on a pro rata basis of a full-time award in keeping with subsection (g) of this section.]

§22.27.Hardship Provisions [Adjustments to Awards].

(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 to receive a TEG while:

(1) enrolled less than three-quarter of full-time enrollment;

(2) if the student's grade point average, number of hours completed, or percent of attempted hours completed falls below the satisfactory academic progress requirements as referred to in §22.25 of this title (relating to Satisfactory Academic Progress); or

(3) if the student has taken more time to complete his/her certificate or degree than specified in §22.26 of this title (relating to Discontinuation of Eligibility or Non-Eligibility).

(b) Hardship conditions or other good cause 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;

(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) a student's need to complete fewer than the required minimum number of 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.

(c) Each institution shall adopt a hardship policy under this section and have the policy available in writing in the financial aid office for public review upon request.

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.]

[(1) Such funds should be re-awarded to other eligible students attending the institution. If funds cannot be re-awarded, they should be returned to the Board by no later than the end of the state fiscal year for which they were allocated to the institution.]

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

§22.28.Award Amounts and Adjustments [Late Disbursements].

(a) Award Amount. Each academic year, no TEG award shall exceed the least of:

(1) the student's financial need;

(2) the student's tuition differential; or

(3) the maximum award allowed based on the student's EFC, which is:

(A) 150 percent of the program maximum for undergraduate students demonstrating exceptional TEG need; or

(B) the program maximum for all other eligible students

(b) Term or Semester Disbursement Limit. The amount of any disbursement in a single term or semester may not exceed the student's financial need or tuition differential for that term or semester or the program maximum for the academic year, whichever is the least.

(c) Prorated Awards. If an eligible student is enrolled less than three-quarter-time in a semester, as measured on the census date, the student's award for that semester may not exceed 50% of the maximum award.

(d) Award calculations and disbursements are to be completed in accordance with Chapter 22, Subchapter A of this title (relating to General Provisions).

[(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.]

[(b) Funds that are disbursed after the end of the student's period of enrollment must be used 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.]

[(c) Documentation must be retained by the institution, proving the late-disbursed funds were used to make a payment against an outstanding balance at the institution from the relevant period of enrollment and/or to make a payment against an outstanding loan taken out for the period of enrollment.]

[(d) Unless granted an extension by the staff of the Coordinating Board, late disbursements must be processed prior to the end of the state fiscal year for which the funds were allocated to the institution.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902211

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


19 TAC §§22.30 - 22.32

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of §§22.30 - 22.32, concerning the Provisions for the Tuition Equalization Grant (TEG) Program. Specifically, §22.30 and §22.31 are repealed in this subchapter and are proposed to be moved to Chapter 22, Subchapter A, General Provisions for better categorizing. Section 22.32 is repealed. The financial aid report for the TEG Program is statutorily mandated in Texas Education Code §61.230; therefore, a rule to produce the report is not necessary.

Charles W. Puls, Ed.D., Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule will be in effect, the public benefit will be improved understanding of TEG program rules. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rule will repeal existing rules, §§22.30 - 22.32;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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, §61.229, which provides the Coordinating Board with the authority to adopt rules for the administration of the Tuition Equalization Grant Program.

The repeal affects Texas Administrative Code §§22.30 - 22.32.

§22.30.Authority to Transfer Funds.

§22.31.Dissemination of Information and Rules.

§22.32.Reporting.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902213

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER C. HINSON-HAZELWOOD COLLEGE STUDENT LOAN PROGRAM

19 TAC §§22.42, 22.44 - 22.46, 22.51 - 22.53, 22.55

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Chapter 22, Subchapter C, §§22.42 - 22.46, 22.51 - 22.53, and 22.55 concerning the Hinson-Hazlewood College Student Loan Program. Specifically, the amendment to §22.42 changes the section title to "Authority and Purpose." In addition, amendments to Section 22.42, as well as the subsequent repeal of §22.43, align the rule structure with the agency's other student financial aid programs to improve stakeholder understanding of the rules. The amendments to §22.44 removes definitions that either are not used in the subchapter or are already defined in Subchapter A, §22.1 of the chapter. This section has been renumbered accordingly. The amendments to §22.45 and §22.46 align the rules with statutory changes enacted through House Bill 4465, 86th Texas Legislature, Regular Session, which removed outdated and unnecessary statutory language. These sections have been renumbered accordingly. Amendments have occurred throughout the rules to provide consistency in the use of terminology, to correct references, and to remove outdated language. These amendments are found in §§22.51(b), 22.52(a), and 22.53(a)(5). The amendment to §22.55(c) eliminates institutional holds on student records and registration for individuals who are delinquent on a Hinson-Hazlewood loan. These institutional holds create a barrier to student completion of a certificate or degree. Eliminating this barrier supports the agency's 60x30TX educated population and completion goals.

Dr. Charles W. Puls, Ed.D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, the public benefit anticipated as a result of this proposal will be clearer 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 section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will reduce the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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, §52.54, which authorizes the Coordinating Board to adopt rules for the administration of the Hinson-Hazlewood College Student Loan Program.

The amendments affect Texas Education Code, §§52.31 - 52.41 and Texas Administrative Code, §§22.42 - 22.46, 22.51 - 22.53, and 22.55.

§22.42.Authority and Purpose.

(a) Unless otherwise noted in a section, the authority for these provisions is provided by the Texas Education Code, §§52.31 - 52.40.

(b) This subchapter establishes rules relating to the administration of several student loan programs that have been authorized by the Texas Legislature to improve and increase access to higher education in the State of Texas.

§22.44.Definitions.

In addition to the words and terms defined in Texas Administrative Code, §22.1 of this title (relating to Definitions) the [The] following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Alternative Educator Certification Program--an approved educator preparation program, delivered by entities approved by the State Board for Educator Certification under the provisions of Texas Administrative Code, §228.10 of this title (relating to Approval Process), specifically designed as an alternative to a traditional undergraduate certification program, for individuals already holding at least a baccalaureate degree.

[(2) Auxiliary Fund--the Student Loan Auxiliary Fund authorized in the Texas Education Code, Chapter 52, §§52.81 - 52.90.]

[(3) Board--the Texas Higher Education Coordinating Board.]

(2) [(4)] CAL [or CALP]--College Access Loan Program.

[(5) Commissioner--the Commissioner of Higher Education.]

(3) [(6)] Cosigner/Accommodation Party--one who signs a student loan promissory note and thereby assumes liability for the debt and all fees and expenses associated with the note, who is not a direct beneficiary of the proceeds of the loan.

[(7) Cost of Attendance--expenses, including direct educational costs (tuition, fees, books, and supplies) as well as indirect educational costs (room and board, transportation, and personal expenses) incurred by a typical student receiving financial aid in attending a particular college.]

(4) [(8)] Default--the failure of a borrower and cosigner, if any, to make loan installment payments when due for a total of 180 days for CAL and HELP loans and 270 days for FFELP and HEAL loans.

(5) [(9)] Deferment--any period during which a borrower, upon adequate showing of entitlement under the terms of the particular lending program, shall be eligible to suspend payments.

(6) [(10)] FFELP--the Federal Family Education Loan Program, formerly the Guaranteed Student Loan Program, authorized by the Higher Education Act of 1965, as amended, 20 U.S.C. §§1071 - 1087-4. Included in the FFELP are Federal Stafford Loans and Federal Supplemental Loans for Students.

(7) [(11)] Forbearance--discretionary permission from the Commissioner or his designees that allows a borrower to cease payments temporarily, or allows an extension of time for making payments, or temporarily reduces the payment amount from the amount that was previously scheduled.

(8) [(12)] FSL--the Robert T. Stafford Federal Student Loan Program to be known as "Federal Stafford Loans," formerly known as Stafford Loans and Guaranteed Student Loans, which included Federal Insured Student Loans. FSLs are made under provisions of the Federal Family Education Loan Program; but, for purposes of this subchapter, the acronym FSL will designate those rules specific to FSL.

(9) [(13)] FSLS--Federal Supplemental Loans for Students, formerly known as Supplemental Loans for Students and Auxiliary Loans for Students. The FSLS are made under provisions of the Federal Family Education Loan Program; but, for purposes of this subchapter, the acronym FSLS will designate those rules specific to FSLS.

(10) [(14)] Fund--the Texas Opportunity Plan Fund as created by the Constitution of the State of Texas, Article III, 50b; the Student Loan Revenue Bond Fund authorized in the Texas Education Code, Chapter 56, Subchapter H; and/or the Student Loan Auxiliary Fund, authorized in the Texas Education Code, Chapter 52, Subchapter F.

(11) [(15)] HEAL [or HEALP]--Health Education Assistance Loan Program authorized by the Public Health Service Act, as amended, 42 U.S.C. §§292 - 292y.

(12) [(16)] HELP--Health Education Loan Program.

(13) [(17)] Hinson-Hazlewood College Student Loan Program, or Program--the commonly used name for the Board program which provides and administers FFELP, CAL, HEAL, and HELP student loans under the authority of Texas Education Code, §§52.31 - 52.40.

[(18) Hinson-Hazlewood College Student Loan Program Officer--a full-time administrative official of an institution who will act as the Board's on-campus agent.]

(14) [(19)] Regional Education Service Center--a center established and operated by the Commissioner of Education under Texas Education Code, Chapter 8.

[(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 Determination of Resident Status). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.]

[(21) Revenue Bond Fund--the Student Loan Revenue Bond Fund, authorized in the Texas Education Code, Chapter 56, Subchapter H.]

§22.45.Eligibility of Institutions.

(a) Eligible higher educational institution means a public or private nonprofit institution of higher education, including a junior college, accredited by a recognized accrediting agency as defined by Texas Education Code §61.003, or a regional education service center or other entity that offers an alternative educator certification program approved by the State Board for Educator Certification, Texas Education Code, Chapter 21, §21.049:

(1) is located in this state; and

(2) complies with the rules of the board promulgated in accordance with this subchapter.

[(b) Entities, including Regional Education Services Centers, approved by the State Board of Educator Certification under the provisions of §228.10 of the Texas Administrative Code (relating to Approval Process) to offer an alternative certification program shall be eligible to participate in the program without being approved by the U.S. Department of Education for the purpose of guaranteeing the Board against loss due to death, disability, or default of borrower.]

(b) [(c)] Each eligible institution shall designate a full-time administrative official of the institution who will act as the Board's on-campus agent. This officer shall certify all institutional transactions and activities with respect to the fund, and shall be responsible for all records and reports reflecting the transactions with respect to the Fund. The [Hinson-Hazlewood College Student Loan] Program Officer may authorize other student financial aid officials at the institution to certify Hinson-Hazlewood College Student Loan Program applications.

(c) [(d)] Each eligible institution shall promptly report student borrower changes in enrollment status to the Board directly or to the National Student Clearinghouse.

§22.46.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) - (7) (No change.)

(8) for CAL [CALP loans], has received a favorable evaluation of his/her credit report or has obtained the signature of a qualified cosigner/accommodation party who has received a favorable evaluation of his/her credit report;

(9) for FSLP, has been issued or will be issued a student loan under any loan program administered by the Board.

(b) When certifying a non-guaranteed loan, the institution shall certify that the amount of the loan does not exceed the difference between the cost of attendance and the financial resources available to the applicant, including the applicant's scholarships, gifts, grants, and other financial aid. [other forms of student assistance for which the student is eligible,] The student's maximum eligibility for Federal Direct Loans, with the exception of Federal Plus loans, must be considered as other financial aid, whether or not the student actually receives such assistance.

[(c) If the institution to which the student has been accepted for enrollment was not an eligible institution, as defined in §21.54 of this title (relating to Eligibility of Institutions) on May 1, 1985, the student shall provide evidence that the student is unable to obtain a guaranteed student loan from a commercial lender.]

§22.51.Loan Interest.

(a) FSL. The interest rate charged for loans shall be determined from time to time by the Commissioner, shall be simple interest, and shall accrue on the outstanding principal from the date of disbursement. FSLs made pursuant to this subchapter are eligible for interest subsidy and interest is charged to the borrower in accordance with the Higher Education Act of 1965, as amended, 20 U.S.C. §§1071 - 1087-4, and 34 Code of Federal Regulations Part 682.

(b) CAL [CALP]. The interest rate charged for loans shall be set from time to time by the Commissioner, shall be simple interest, and shall begin to accrue on the outstanding principal from the date of disbursement. These loans are not eligible for interest subsidy.

(c) HEAL. The interest rate charged for loans shall be determined from time to time by the Commissioner, and interest shall accrue on the outstanding principal from the date of disbursement.

(d) HELP. The interest rate charged for loans shall be determined from time to time by the Commissioner, and interest shall accrue on the outstanding principal.

§22.52.Disbursements to Students.

(a) No disbursement shall be made to any student until he or she has executed a promissory note payable to the program for the full amount of any loan plus interest and other authorized fees. In addition, for CAL loans, a cosigner's signature may be also required in accordance with the provisions of §22.46(a)(8) [§21.55(a)(8) ] of this title (relating to Eligibility of Students).

(b) The original of such executed promissory note shall be forwarded to the Board immediately.

(c) For the purposes of any promissory note executed by a borrower, the defense that he or she was a minor at the time he or she executed a note shall not be available to him or her in any action arising on the note.

§22.53.Repayment of Loans.

(a) Period of loan repayment.

(1) - (4) No change.

(5) HELP. All loans extended under this program by the Board shall be repaid in the manner and under the statutes, rules and guidelines governing HEAL [HEALP].

(b) - (d) No change.

(e) Forbearance. The Commissioner may grant periods of forbearance for unusual financial hardship on any account that is held by the Board if the borrower presents the Commissioner or his designee with [a writing setting forth] the reasons therefore, and the Commissioner or his designee determines that the borrower's account history justifies such action. Borrowers of federally insured loans may have rights to certain additional types of forbearances under the applicable program's statutes and rules.

(f) - (h) No change.

§22.55.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 official certified copy of such records may be released, and/or the student may re-register in the institution. 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.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902214

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


19 TAC §22.43

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Chapter 22, Subchapter C, §22.43, concerning the Hinson-Hazlewood College Student Loan Program. The language from former §22.43 has been combined with §22.42 to provide consistency with the rule structure of other program rules throughout Chapter 22.

Dr. Charles W. Puls, Ed.D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, the public benefit anticipated as a result of this proposal will be a clearer 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 section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the proposed repeal will not create or eliminate a government program;

(2) implementation of the repeal will not require the creation or elimination of employee positions;

(3) implementation of the repeal will not require an increase or decrease in future legislative appropriations to the agency;

(4) the repeal will not require an increase or decrease in fees paid to the agency;

(5) the repeal will not create a new rule;

(6) the repeal will repeal an existing rule, §22.43;

(7) the repeal will not change the number of individuals subject to the rule; and

(8) the repeal will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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, §52.54, which authorizes the Coordinating Board to adopt rules for the administration of the Hinson-Hazlewood College Student Loan Program.

The repeal affects Texas Education Code, §§52.31-52.41, and Texas Administrative Code, §§22.42-22.46, 22.51-22.53, and 22.43.

§22.43.Authority.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902215

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER E. HINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM: ALL LOANS MADE BEFORE FALL SEMESTER, 1971, NOT SUBJECT TO THE FEDERALLY INSURED STUDENT LOAN PROGRAM

19 TAC §22.84

The Texas Higher Education Coordinating Board (Coordinating Board) proposes an amendment to §22.84, concerning the Hinson-Hazlewood College Student Loan Program: All Loans Made Before Fall Semester, 1971, not Subject to the Federally Insured Student Loan Program. Specifically, the amendment to §22.84, concerning Administration, corrects the official name of the agency.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, there will be no impact on the public. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, or rural communities.

Government Growth Impact Statement

(1) the rule as amended will not eliminate a government program;

(2) implementation of the amendment will not require the creation or elimination of employee positions;

(3) implementation of the amendment will not require an increase or decrease in future legislative appropriations to the agency;

(4) the amendment will not require an increase or decrease in fees paid to the agency;

(5) the amendment will not create a new rule;

(6) the amendment will not repeal or expand an existing rule;

(7) the amendment will not change the number of individuals subject to the rule; and

(8) the amendment will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, 512-427-6365, charles.puls@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under Texas Education Code, §52.54, which provides the Coordinating Board with the authority to adopt rules to implement the Hinson-Hazlewood College Student Loan Program: All Loans Made Before Fall Semester, 1971, Not Subject to the Federally Insured Student Loan Program.

The amendment affects Texas Administrative Code §22.84.

§22.84.Administration.

The Texas Higher Education Coordinating Board[, Texas College and University System,] or its successor or successors, hereafter referred to as the board, shall administer the student loan program authorized by the Hinson-Hazlewood College Student Loan Act pursuant to Texas Constitution, Article III, §50b. Such personnel and other expenses as may be required to properly administer this program are to be provided in the biennial appropriation acts.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902216

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


19 TAC §§22.86 - 22.91, 22.94, 22.97 - 22.102

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of §§22.86 - 22.91, 22.94, and 22.97 - 22.102, concerning the Hinson-Hazlewood College Student Loan Program: All Loans Made Before Fall Semester, 1971, not Subject to the Federally Insured Student Loan Program. Specifically, §§22.86 - 22.91, 22.94, and 22.97 - 22.102 are repealed because loans are no longer being originated under this subchapter. Although most of the loans in this portfolio are in an "uncollectible" status, some loans are still in a repayment status; loans in a judgment status are also considered receivables.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, the benefit anticipated as a result of repealing these rules is elimination of the potential for confusion about rules that are no longer applicable. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rule will repeal existing §§22.86 - 22.91, 22.94, 22.97 - 22.102;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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 Texas Education Code, §52.54, which authorizes the Coordinating Board to adopt rules to implement the Hinson-Hazlewood College Student Loan Program: All Loans Made Before Fall Semester, 1971, Not Subject to the Federally Insured Student Loan Program.

The repeal affects Texas Administrative Code §§22.86 - 22.91, 22.94, 22.97 - 22.102.

§22.86.Definitions.

§22.87.Investment of Funds.

§22.88.Participating Institutions.

§22.89.Qualifications for Loans.

§22.90.Amount of Loan.

§22.91.Payments to Student.

§22.94.Insurance.

§22.97.Institutional Refunds to Student Borrowers.

§22.98.Cancellation of Loans.

§22.99.Advisory Committees.

§22.100.Contracts.

§22.101.Gifts and Grants.

§22.102.Audit.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902217

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER K. PROVISIONS FOR SCHOLARSHIPS FOR STUDENTS GRADUATING IN THE TOP 10 PERCENT OF THEIR HIGH SCHOOL CLASS

19 TAC §§22.196 - 22.203

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of §§22.196 - 22.203, concerning Provision for Scholarships for Students Graduating in the Top 10 Percent of Their High School Class. Specifically, the 86th Texas Legislature has eliminated appropriations for this program beginning in Fiscal Year 2020, and there were no eligible recipients in Fiscal Year 2019. Therefore, it is appropriate to delete these rules.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, there will be no impact on the public. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rule will repeal existing §§22.196 - 22.203;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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 Texas Education Code, §56.493, which provides the Coordinating Board with the authority to adopt rules to administer the Top Ten Percent Scholarship Program.

The repeal affects Texas Education Code, §§56.481-56.493 and Texas Administrative Code §§22.196-22.203.

§22.196.Authority and Purpose.

§22.197.Definitions.

§22.198.Institutions.

§22.199.Eligible Students.

§22.200.Awards.

§22.201.Satisfactory Academic Progress.

§22.202.Processing and Awarding Cycle.

§22.203.Priorities in Funding.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902218

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


CHAPTER 23. EDUCATION LOAN REPAYMENT PROGRAMS

SUBCHAPTER C. THE PHYSICIAN EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §§23.65, 23.70, 23.71

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §§23.65, 23.70, and 23.71, concerning the Physician Education Loan Repayment Program. The amendment to §23.65 concerning "Definitions" strikes the term "Commissioner" from the rule. The term is not used throughout the rule. Amendments to §23.70 (a) - (d) are proposed in accordance with House Bill 2261, 86th Texas Legislature, Regular Session and add language that provides the criteria for determining the level of repayment assistance an eligible physician may receive based on the amount of physician's indebtedness and when eligibility was first established. Outdated language or language that is no longer applicable has been deleted from this section. Amendments to §23.71(a) - (b) concerning "Limitations" add language that limits the periods of service for which a physician may receive repayment assistance to four. Language is also added that provides the amount of repayment assistance to a physician based on when eligibility was first established. Outdated language or language that is no longer applicable has been deleted from this section.

Charles W. Puls, Ed.D., Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, the public benefit anticipated as a result of administering the section will be the implementation of higher repayment levels as authorized by statute. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rule will expand existing rule §23.70 and §23.71;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in theTexas Register.

The amended sections are proposed under the Texas Education Code, §61.537, which authorizes the Coordinating Board to adopt rules consistent with Texas Education Code, Chapter 61, Subchapter J.

The amendments affect Texas Administrative Code §§23.65, 23.70, 23.71 and TEC §61.538.

§23.65.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) CHIP--The Children's Health Insurance Program, authorized by the Texas Health and Safety Code, Chapter 62.

[(3) Commissioner--The commissioner of higher education, the chief executive officer of the Board.]

[(4)] Federally Qualified Health Center--Any entity in Texas defined under 42 USC §1396d (l)(2)(B).

(3) [(5)] DSHS--The Texas Department of State Health Services.

(4) Federally Qualified Health Center--Any entity in Texas defined under 42 USC §1396d (l)(2)(B).

(5) [(6)] Full-time Service--An average of at least 32.5 hours of direct patient care per week during the service period at the practice site.

(6) [(7)] HPSAs--Health Professional Shortage Areas (HPSAs) are designated by the U.S. Department of Health and Human Services (HHS) as having shortages of primary medical care, dental or mental health providers and may be geographic (a county or service area), demographic (low income population) or institutional (comprehensive health center, federally qualified health center or other public facility). Designations meet the requirements of Sec. 332 of the Public Health Service Act, 90 Stat. 2270-2272 (42 U.S.C. 254e). Texas HPSAs are recommended for designation by HHS based on analysis of data by DSHS.

(7) [(8)] Medicaid--The medical assistance program authorized by Chapter 32, Human Resources Code.

(8) [(9)] NPI--National Provider Identifier; the Health Insurance Portability and Accountability Act (HIPAA) Administrative Simplification Standard unique identification number for covered health care providers. Covered health care providers and all health plans and health care clearinghouses must use the NPIs in the administrative and financial transactions adopted under HIPAA.

(9) [(10)] Primary Care Specialty--Family medicine, family practice, general practice, obstetrics/gynecology, general internal medicine, general pediatrics, combined internal medicine and pediatrics (medicine-pediatrics), psychiatry, geriatrics, or hospitalists who practice in HPSAs.

(10) [(11)] Program--The Physician Education Loan Repayment Program.

(11) [(12)] Rural HPSA--A HPSA-designated whole county whose population is less than 50,000 or a HPSA-designated facility or population group located in a county whose population is less than 50,000.

(12) [(13)] Service Period--A period of 12 consecutive months qualifying a physician for loan repayment.

(13) Texas Women's Health Program--The program authorized by Health and Safety Code, §31.002(a)(4)(C) and (H), §31.003, and §31.004, which provides primary health care services, including family planning services and health screenings, at no cost to eligible low-income women; administered by the Texas Health and Human Services Commission.

(14) TMHP--Texas Medicaid and Healthcare Partnership; the entity that administers Texas Medicaid and other state health-care programs on behalf of the Texas Health and Human Services Commission.

(15) TPI--Texas Provider Identifier; the number Managed Care Medicaid Providers must use when filing claims with the Texas Medicaid and Healthcare Partnership (TMHP), for payment of services rendered.

(16) Texas Women's Health Program--The program authorized by Health and Safety Code, §31.002(a)(4)(C) and (H), §31.003, and §31.004, which provides primary health care services, including family planning services and health screenings, at no cost to eligible low-income women; administered by the Texas Health and Human Services Commission.

§23.70.Amount of Repayment Assistance.

(a) A physician who first established eligibility for the program based on an application submitted before September 1, 2019, and whose total student loan indebtedness is at least $160,000 may receive repayment assistance based on full-time service for the following amounts:

(1) for the first service period, $25,000;

(2) for the second service period, $35,000;

(3) for the third service period, $45,000;

(4) for the fourth service period, $55,000.

(b) If a physician first established eligibility for the program based on an application submitted before September 1, 2019, with [physician's] total student loan indebtedness [is] less than $160,000, the annual loan repayment amounts based on full-time service will be the amounts required to repay the indebtedness over a period of four years, with annual increases that are proportional to the annual increases for physicians whose student loan indebtedness is at least $160,000.

(c) A physician who first established eligibility for the program based on an application submitted on or after September 1, 2019, and whose total student-loan indebtedness is at least $180,000, may receive repayment assistance based on full-time service for the following amounts:[may receive prorated loan repayment assistance based on the percentage of full-time service provided for each service period, if providing direct patient care for a minimum of 20 hours per week for each service period.]

(1) for the first service period, $30,000;

(2) for the second service period, $40,000;

(3) for the third service period, $50,000;

(4) for the fourth service period, $60,000.

(d) If a physician first established eligibility for the program based on an application submitted on or after September 1, 2019, with total student-loan indebtedness less than $180,000, the annual loan repayment amounts based on full-time service will be the amounts required to repay the indebtedness over a period of four years, with annual increases that are proportional to the annual increases for physicians whose student loan indebtedness is at least $180,000.

(e) A physician may receive prorated loan repayment assistance based on the percentage of full-time service provided for each service period, if providing direct patient care for a minimum of 20 hours per week for each service period.

§23.71.Limitations.

(a) Repayment [The total amount of repayment] assistance to a physician [may not exceed $160,000 over a period of no more than] is limited to four periods of service.

(b) The total amounts of repayment assistance to a physician who first established eligibility for the program based on an application submitted before September 1, 2019, is limited to $160,000. [Except under circumstances determined by the Board and DSHS to constitute good cause, failure to meet the program requirements will result in non-payment for that service period and removal from the program. Additionally, providers who do not meet the requirements will be ineligible to apply for other loan repayment programs in Texas. Physicians practicing in HPSAs will be released from the agreement to provide four years of eligible service for any year for which loan repayment funds are not available.]

(c) The total amount of repayment assistance to a physician who first established eligibility for the program based on an application submitted on or after September 1, 2019, is limited to $180,000. [A physician may not receive loan repayment assistance under both Texas Education Code, §61.531 and any other loan repayment program, including Texas Government Code, §510.156 relating to funds appropriated for purposes of correctional managed health care, or repayment assistance provided by the physician's employer while the physician is participating in the program.]

(d) Applications from physicians who establish eligibility under §21.255(b)(1)(C) of this title (relating to Eligibility) will be considered only if funds are available after financial commitments for the fiscal year have been made to physicians practicing in HPSAs and secure correctional facilities.

(e) Except under circumstances determined by the Board and DSHS to constitute good cause, failure to meet the program requirements will result in non-payment for that service period and removal from the program. Additionally, providers who do not meet the requirements will be ineligible to apply for other loan repayment programs in Texas. Physicians practicing in HPSAs will be released from the agreement to provide four years of eligible service for any year for which loan repayment funds are not available.

(f) A physician may not receive loan repayment assistance under both Texas Education Code, §61.531 and any other loan repayment program, including Texas Government Code, §510.156 relating to funds appropriated for purposes of correctional managed health care, or repayment assistance provided by the physician's employer while the physician is participating in the program.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902220

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER E. DENTAL EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §§23.124 - 23.130

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of §§23.124 - 23.130, concerning the Dental Education Loan Repayment Program. Specifically, funds have not been appropriated for this program since the 2016 - 2017 biennium. Since this is no longer an active program, it is appropriate to delete the rules.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, there will be no impact on the public. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rule will repeal existing §§23.124 - 23.130;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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 Texas Education Code (TEC), Subchapter V, §61.908, which provides the Coordinating Board the authority to adopt rules necessary for the administration of this subchapter.

The repeal affects Texas Administrative Code §§23.124 - 23.130 and TEC §61.908.

§23.124.Authority and Purpose.

§23.125.Definitions.

§23.126.Priorities of Application Acceptance.

§23.127.Eligible Lender and Eligible Education Loan.

§23.128.Eligible Dentist.

§23.129.Amount of Repayment Assistance.

§23.130.Dissemination of Information.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902221

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER F. BORDER COUNTY DOCTORAL FACULTY EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §§23.155 - 23.161

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of §§23.155 - 23.161, concerning the Border County Doctoral Faculty Education Loan Repayment Program. Specifically, funds have not been appropriated for this program since the 2016-2017 biennium. Since this is no longer an active program, it is appropriate to delete these rules.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rule is in effect, there will be no impact on the public. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rule will repeal existing §§23.155 - 23.161;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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 Texas Education Code (TEC), Subchapter M, §61.708, which provides the Coordinating Board the authority to adopt rules necessary for the administration of this subchapter.

The repeal affects Texas Administrative Code §§23.155 - 23.161 and TEC §61.708.

§23.155.Authority and Purpose.

§23.156.Definitions.

§23.157.Application Process.

§23.158.Priority Applications and Ranking Criteria.

§23.159.Eligible Lender and Eligible Education Loan.

§23.160.Eligible Faculty.

§23.161.Repayment of Education Loans.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902224

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER H. PEACE OFFICER LOAN REPAYMENT ASSISTANCE PROGRAM

19 TAC §§23.209 - 23.216

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules under Chapter 23, Subchapter H, §§23.209 - 23.216, concerning the Peace Officer Loan Repayment Assistance Program, which was created by Senate Bill 16 and signed by the Governor following the 86th Texas Legislature Session. Funding for the program is authorized for the 2020-2021 biennium by Contingency Rider 18.60 of the General Appropriations Act.

Dr. Charles Puls, Deputy Assistant Commissioner, has determined that for each year of the first five years the new rules are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering these rules.

Dr. Puls has also determined that for each year of the first five years that the new rules will be in effect, the public benefit anticipated as a result of administering the sections will be improved recruitment and retention of qualifying peace officers in Texas. There is no effect on small businesses, micro-businesses, or rural communities. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is a positive impact on local employment in the areas where participating peace officers serve.

Government Growth Impact Statement

(1) the rules will create a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will create Texas Administrative Code, Title 19, Part 1, Chapter 23, Subchapter H;

(6) the rules will not limit or expand an existing rule;

(7) the rules will increase the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@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, §61.9959, which authorizes the Coordinating Board to adopt rules.

No other code or statute is affected by this proposal.

§23.209.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter NN, Peace Officer Loan Repayment Assistance Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.9951 - 61.9959.

(b) Purpose. The primary purpose of the Peace Officer Loan Repayment Assistance Program is to provide assistance with the repayment of eligible student loans for qualifying peace officers who agree to continued full-time employment in Texas as peace officers for a specified period.

§23.210.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) Eligible Institution--A Texas public or private or independent institution of higher education, as defined in the Texas Education Code, §61.003.

(3) Full-time--Employed full-time (at least 40 hours per week for a minimum of 45 weeks per year) as an eligible peace officer.

(4) Peace Officer--The meaning assigned by Article 2.12, Texas Code of Criminal Procedure.

(5) Program--Peace Officer Loan Repayment Assistance Program.

(6) Service Period--A period of 12 consecutive months qualifying a peace officer for loan repayment assistance.

§23.211.Initial Eligibility.

To be eligible for the Board to conditionally approve an application and encumber loan repayment funds, a peace officer must:

(1) be initially employed as a peace officer on or after September 1, 2019;

(2) submit to the Board by the published deadline an initial application for enrollment in the program that requires:

(A) employer verification of the person's employment as a full-time peace officer in Texas for at least one year and the person's current full-time employment in Texas as of the date of the application;

(B) documentation of the peace officer's unrestricted license as a peace officer;

(C) a transcript of the person's postsecondary course work demonstrating at least 60 semester credit hours, or the equivalent, earned at an eligible institution before the person's initial employment as a peace officer;

(D) a statement of the total amount of principal, accrued interest, fees, and other charges due on unpaid eligible loans obtained for attendance at an eligible institution for a semester or other term that ended in the five years immediately preceding the person's initial employment as a peace officer;

(E) a statement that the peace officer will submit to the Board an application for payment immediately upon completion of each year of service for which the peace officer is applying for repayment assistance; and

(F) a statement that the individual agrees to continuous full-time employment as a peace officer in this state for five consecutive years after the date of the initial application.

§23.212.Selection of Eligible Applicants.

(a) Each fiscal year an application deadline will be posted on the program web page.

(b) In the initial year of the program, applications will be selected on a first-come-first-served basis until funds are no longer available.

(c) After the initial program year, priority will be given to prior year recipients and initial applications will be selected on a first-come-first-served basis until funds are no longer available.

§23.213.Eligibility for Disbursement of Loan Repayment Assistance.

(a) A person may not receive loan repayment assistance through the program for more than five consecutive years.

(b) To be eligible to receive loan repayment assistance, a peace officer must annually ensure that the Board has received, by the required deadline, a completed end-of-service period application for payment providing the employer's certification of continuous full-time employment as a peace officer during the service period.

§23.214.Eligible Lender and Eligible Education Loan.

(a) The Board shall retain the right to determine the eligibility of lenders and holders of education loans to which payments may be made. An eligible lender or holder shall, in general, make or hold education loans made to qualifying students to pay for their higher education costs and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, or private foundation.

(b) To be eligible for repayment, an education loan must:

(1) be evidenced by a promissory note for loans to pay for the cost of the individual's attendance at an eligible institution for a semester or other term that ended in the five years immediately preceding the person's initial employment as a peace officer;

(2) not be in default at the time of the peace officer's application;

(3) not have an existing obligation to provide service for loan forgiveness through another program;

(4) not be subject to repayment through another student loan repayment or loan forgiveness program or as a condition of employment; and

(5) if the eligible loan was consolidated with ineligible loans or included in a repayment schedule with ineligible loans, the applicant must provide documentation of the eligible loans, disaggregated from the ineligible loans.

(c) Credit card debt is not considered an educational loan eligible for repayment.

§23.215.Amount of Repayment Assistance.

(a) Loan repayment awards will be disbursed directly to lenders on behalf of eligible peace officers.

(b) The maximum amount of loan repayment assistance that a peace officer may receive over a period of five consecutive years is $20,000.

(c) The annual amount of loan repayment assistance that a peace officer may receive for each service period is the lesser of $4,000 or 20 percent of the total unpaid eligible loan balance verified at the time of the initial application, unless the payoff period for the person's total unpaid eligible loan balance is fewer than five years.

(d) If the payoff period for the person's total unpaid eligible loan balance is fewer than five years, the award amount will be the total amount of the scheduled payments due to the holder(s) of the eligible loans for the applicable year.

(e) Loan repayment awards are contingent on available funding. If in any year the amount of money available for loan repayment assistance is insufficient to award the maximum annual award amount to all eligible applicants, the Board may reduce award amounts to assist a greater number of peace officers.

§23.216.Rules.

The Board shall post on its website a link to the rules adopted for the program and other program materials.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902225

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


SUBCHAPTER J. MATH AND SCIENCE SCHOLARS LOAN REPAYMENT PROGRAM

19 TAC §§23.288, 23.290, 23.294

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §§23.288, 23.290, and 23.294, concerning the Math and Science Scholars Loan Repayment Program.

Senate Bill 1757, passed by the 86th Texas Legislature, Regular Session, amends §23.288, concerning "Eligibility for Enrollment in the Program" by changing the GPA requirement in subsection (a)(4) from 3.5 to 3.0. Subsection (b)(2) amends language specific to the number of additional consecutive years a person may teach to receive loan repayment assistance under this subchapter, limiting the requirement to no more than four.

The amendments to §23.290, concerning "Exceptions to Consecutive Years of Employment Requirement," replaces the incorrect reference to §21.2024 with the correct reference §23.289.

Amendments to §23.294, concerning "Limitations," delete subsections (b) - (d), as these provisions are no longer applicable. This section is renumbered accordingly.

Dr. Charles W. Puls, Ed. D, Deputy Assistant Commissioner for Student Financial Aid Programs, has determined that for the first five years the rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Puls has also determined that for each year of the first five years that the rules is in effect, the public benefit of the amendments will be the program's improved ability to retain qualified math and science teachers in Texas public schools of high need. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on small businesses, micro businesses, or rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit or expand an existing rule;

(7) the rules will increase the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365, charles.puls@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The rule amendments are proposed under the Texas Education Code, §61.9840, which authorizes the Coordinating Board to adopt rules necessary for the administration of the Math and Science Scholars Loan Repayment Program.

The amendments affect Texas Administrative Code §§23.288, 23.290, and 23.294.

§23.288.Eligibility for Enrollment in the Program.

(a) To be eligible for the Board to conditionally approve an application and encumber loan repayment funds, a teacher must:

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

(4) have earned a cumulative GPA of at least 3.0 [3.5] on a four-point scale, or the equivalent, at the institution from which the teacher graduated;

(5) - (9) (No change.)

(b) The agreement with the Board must include the following provisions:

(1) the applicant will accept an offer of continued employment to teach mathematics or science, as applicable based on the teacher's certification, for an average of at least four hours each school day in a Title I school, for four consecutive years, beginning with the school year that has recently begun or the upcoming school year at the time of the application for enrollment in the Program;

(2) the applicant may [will] complete up to four additional consecutive school years teaching mathematics or science, as applicable based on the teacher's certification, for an average of at least four hours each school day in any Texas public school, beginning with the school year immediately following the last of the four consecutive school years described by paragraph (1) of this subsection; and

(3) the applicant understands that loan repayment awards are contingent on available funding received, the Board may make a financial commitment only based on funds that have been appropriated for each two-year state budget period, and the teacher will be released from the teaching obligation for any year of employment for which funds are not available.

§23.290.Exceptions to Consecutive Years of Employment Requirement.

Although funding limitations may require the Board to exercise the ranking priorities established in §23.289 [§21.2024 ] of this title (relating to Application Ranking Priorities) a teacher who has enrolled in the Program shall not lose Program eligibility due to failure to meet the consecutive years of qualifying employment requirement if the break in employment service is a result of the person's:

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

§23.294.Limitations.

(a) No more than 4,000 eligible teachers shall receive loan repayment assistance in any school year.

[(b) In the 2016-2017 school year, no more than 1,000 teachers shall receive loan repayment assistance.]

[(c) In the 2017-2018 school year, no more than 2,000 teachers shall receive loan repayment assistance.]

[(d) In the 2018-2019 school year, no more than 3,000 teachers shall receive loan repayment assistance.]

(b) [(e)] Failure to meet Program requirements will result in non-payment for the applicable year of employment and removal from the Program.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902227

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


CHAPTER 27. FIELDS OF STUDY

SUBCHAPTER SS. MECHANICAL ENGINEERING FIELD OF STUDY ADVISORY COMMITTEE

19 TAC §§27.981 - 27.987

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new Chapter 27, Subchapter SS, §§27.981 - 27.987 concerning the Mechanical Engineering Field of Study Advisory Committee. The proposed new rules authorize the Board to create an advisory committee to develop a Mechanical Engineering field of study. The newly added rules will affect students when the Mechanical Engineering field of study is adopted by the Board.

Dr. Rex C. Peebles, Assistant Commissioner for Academic Quality and Workforce, has determined that for the first five years there will be no fiscal implications for state or local governments as a result of adding the new sections. There would be minimal costs to public institutions of higher education to support the expenses of committee members who may travel to the Coordinating Board in Austin for meetings.

Dr. Peebles as also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the clarification of which lower division courses are required in a Mechanical Engineering degree and the improved transferability and applicability of courses. There would be minimal costs to public institutions of higher education to support travel and other expenses of committee members who may travel to the Coordinating Board in Austin for meetings. There is no impact on local employment. There is no impact on small businesses, micro businesses, and rural communities.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will positively affect the state's economy.

Comments on the proposal may be submitted to Rex C. Peebles, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas, 78711 or via email at AQWComments@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, §61.823(a), which provides the Coordinating Board with the authority to develop fields of study curricula with the assistance of advisory committees, and Texas Government Code, §2110.005, which requires a state agency that establishes an advisory committee to adopt rules that state the purpose and tasks of the committee and describe the manner in which the committee will report to the agency.

The new sections affect the implementation of Texas Education Code, Chapter 61.

§27.981.Authority and Specific Purposes of the Mechanical Engineering Field of Study Advisory Committee.

(a) Authority. Statutory authority for this subchapter is provided in the Texas Education Code, §61.823(a).

(b) Purpose. The Mechanical Engineering Field of Study Advisory Committee is created to provide the Commissioner and the Board with guidance regarding the Mechanical Engineering field of study curricula.

§27.982.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) Field of Study Curricula--The block of courses which may be transferred to a general academic teaching institution and must be substituted for that institution's lower division requirements for the degree program into which the student transfers, and the student shall receive full academic credit toward the degree program for the block of courses transferred.

(4) Institutions of Higher Education--As defined in Texas Education Code, Chapter 61.003(8).

§27.983.Committee Membership and Officers.

(a) The advisory committee shall be equitably composed of representatives of institutions of higher education.

(b) Each university system or institution of higher education which offers a degree program for which a field of study curriculum is proposed shall be offered participation on the advisory committee.

(c) At least a majority of the members of the advisory committee named under this section shall be faculty members of an institution of higher education. An institution shall consult with the faculty of the institution before nominating or recommending a person to the board as the institution's representative on an advisory committee.

(d) Board staff will recommend for Board appointment individuals who are nominated by institutions of higher education.

(e) Members of the committee shall select co-chairs, who will be responsible for conducting meetings and conveying committee recommendations to the Board.

(f) The number of committee members shall not exceed twenty-four (24).

(g) Members shall serve staggered terms of up to four years. The terms of chairs and co-chairs (if applicable) will be two years dating from their election.

§27.984.Duration.

The Committee shall be abolished no later than October 31, 2023, in accordance with Texas Government Code, Chapter 2110. It may be reestablished by the Board.

§27.985.Meetings.

The Committee shall meet as necessary. Special meetings may be called as deemed appropriate by the presiding officer. Meetings shall be open to the public and broadcast via the web, unless prevented by technical difficulties, and minutes shall be available to the public after they have been prepared by the Board staff and reviewed by members of the Committee.

§27.986.Tasks Assigned to the Committee.

Tasks assigned to the Committee include:

(1) Advise the Board regarding the Mechanical Engineering Field of Study Curricula;

(2) Provide Board staff with feedback about processes and procedures related to the Mechanical Engineering Field of Study Curricula; and

(3) Any other issues related to the Mechanical Engineering Field of Study Curricula as determined by the Board.

§27.987.Report to the Board; Evaluation of Committee Costs and Effectiveness.

The Committee shall report recommendations to the Board. The Committee shall also report Committee activities to the Board to allow the Board to properly evaluate the Committee work, usefulness, and the costs related to the Committee existence. The Board shall report its evaluation to the Legislative Budget Board in its biennial Legislative Appropriations Request.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902228

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 427-6104


PART 2. TEXAS EDUCATION AGENCY

CHAPTER 101. ASSESSMENT

SUBCHAPTER CC. COMMISSIONER'S RULES CONCERNING IMPLEMENTATION OF THE ACADEMIC CONTENT AREAS TESTING PROGRAM

DIVISION 2. PARTICIPATION AND ASSESSMENT REQUIREMENT FOR GRADUATION

19 TAC §101.3022

The Texas Education Agency (TEA) proposes an amendment to §101.3022, concerning assessment requirements for graduation. The proposed amendment would modify the rule to reflect changes in statute made by Senate Bill (SB) 213, 86th Texas Legislature, 2019, and update expiration dates.

BACKGROUND INFORMATION AND JUSTIFICATION: Section 101.3022 requires students to achieve satisfactory performance on the end-of-course (EOC) assessments listed in the Texas Education Code (TEC), §39.023(c), to be eligible to receive a high school diploma. The rule also specifies an exception, as authorized by the TEC, §28.0258, that allows a student who has failed to achieve the EOC assessment graduation requirements for no more than two courses to receive a Texas high school diploma if the student has qualified to graduate by means of an individual graduation committee. The rule currently states that the individual graduation committee provision expires on September 1, 2019.

SB 213, 86th Texas Legislature, 2019, amended the TEC, §28.0258, to extend the expiration date of the provision that allows eligible students to qualify to graduate by means of an individual graduation committee to September 1, 2023. To implement SB 213, the proposed amendment would modify the rule by extending the expiration date to September 1, 2023.

FISCAL IMPACT: Lily Laux, deputy commissioner for school programs, has determined that for the first five-year period the proposal is in effect there are no additional costs to state or local government, including school districts and open-enrollment charter schools, required to comply with the proposal.

LOCAL EMPLOYMENT IMPACT: The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022.

SMALL BUSINESS, MICROBUSINESS, AND RURAL COMMUNITY IMPACT: The proposal has no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

COST INCREASE TO REGULATED PERSONS: The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.

TAKINGS IMPACT ASSESSMENT: The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under Texas Government Code, §2007.043.

GOVERNMENT GROWTH IMPACT: TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would expand an existing regulation due to the extension of the expiration date and increase the number of individuals subject to the rule's applicability by allowing more students to obtain high school diplomas.

The proposed rulemaking would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not limit or repeal an existing regulation; and would not positively or adversely affect the state's economy.

PUBLIC BENEFIT AND COST TO PERSONS: Ms. Laux has determined that for each year of the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the proposal would be ensuring that rule language is based on current law and provides additional options for students to obtain a high school diploma. There is no anticipated economic cost to persons who are required to comply with the proposal.

DATA AND REPORTING IMPACT: The proposal would have no data and reporting impact.

PRINCIPAL AND CLASSROOM TEACHER PAPERWORK REQUIREMENTS: The TEA has determined that the proposal would not require a written report or other paperwork to be completed by a principal or classroom teacher.

PUBLIC COMMENTS: The public comment period on the proposal begins July 26, 2019, and ends August 26, 2019. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on July 26, 2019. A form for submitting public comments is available on the TEA website at https://tea.texas.gov/About_TEA/Laws_and_Rules/Commissioner_Rules_(TAC)/Proposed_Commissioner_of_Education_Rules/. Comments on the proposal may also be submitted to Cristina De La Fuente-Valadez, Rulemaking, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701.

STATUTORY AUTHORITY. The amendment is proposed under Texas Education Code (TEC), §28.02541, as amended by SB 213, 86th Texas Legislature, 2019, which extends the expiration date for districts to determine whether certain former students, who have met curriculum requirements for graduation but have not performed satisfactorily on an assessment instrument, may qualify to graduate and receive a high school diploma. The expiration date changed from September 1, 2019, to September 1, 2023. Subsection (f) requires the commissioner to adopt rules to implement the section; and TEC, §39.025, establishes the secondary-level performance required to receive a Texas high school diploma, establishes alternate assessment options for students who entered Grade 9 prior to the 2011-2012 school year or Grade 10 or above in the 2011-2012 school year, and requires the commissioner to establish satisfactory performance levels on the alternate assessments.

CROSS REFERENCE TO STATUTE. Texas Education Code, §28.02541, as amended by SB 213, 86th Texas Legislature, 2019, and §39.025.

§101.3022.Assessment Requirements for Graduation.

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

(e) Effective beginning with the 2014-2015 school year, a student who has taken but failed to achieve the EOC assessment graduation requirements for no more than two courses may receive a Texas high school diploma if the student has qualified to graduate by means of an individual graduation committee under the TEC, §28.0258.

(1) A student may not graduate under an individual graduation committee if the student did not take each EOC assessment required by this subchapter or an approved substitute assessment in Subchapter DD of this chapter (relating to Commissioner's Rules Concerning Substitute Assessments for Graduation) for each course in which the student was enrolled in a Texas public school for which there is an EOC assessment. A school district or charter school shall determine whether the student took each required EOC assessment or an approved substitute assessment required by Subchapter DD of this chapter. For purposes of this section only, a student who does not make an attempt to take all required EOC assessments may not qualify to graduate by means of an individual graduation committee.

(2) A student who is an English language learner (ELL) and qualifies for the English I special provision in §101.1007 of this title may graduate without an individual graduation committee if the student achieves satisfactory performance on the remaining EOC assessments that the student is required to take.

(A) The qualifying ELL becomes eligible for individual graduation committee review by failing to achieve satisfactory performance on the English I EOC assessment and one other EOC assessment or by failing to achieve satisfactory performance on no more than two of the remaining EOC assessments if the student achieved satisfactory performance on the English I EOC assessment.

(B) If a qualifying ELL does graduate by means of an individual graduation committee, the student is required to complete individual graduation committee requirements for each course in which the student did not achieve satisfactory performance on the EOC assessment for that course.

(3) Notwithstanding any action taken by a student's individual graduation committee, a school district or charter school must provide a student an opportunity to retake an EOC assessment under the TEC, §39.023(c), if the student has not previously achieved satisfactory performance on an assessment for that course. A student is not required to retake a course in order to be administered a retest of an EOC assessment.

(4) Provisions of this subsection expire September 1, 2023 [2019]. A student may graduate by means of an individual graduation committee if the student has qualified for an individual graduation committee under the TEC, §28.0258, and that individual graduation committee convened prior to September 1, 2023 [2019].

(f) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902188

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 475-1497


19 TAC §101.3024

The Texas Education Agency (TEA) proposes an amendment to §101.3024, concerning assessment requirements for students first enrolled in Grade 9 prior to 2011-2012 school year or first enrolled in Grade 10 or above in 2011-2012 school year. The proposed amendment would modify the rule to reflect changes in statute made by Senate Bill (SB) 213, 86th Texas Legislature, 2019, and update an expiration date.

BACKGROUND INFORMATION AND JUSTIFICATION: Section 101.3024 allows former students, who were required to pass all or certain parts of the exit-level tests for graduation, to earn a high school diploma through alternative options. Specifically, subsection (g) allows a former student to receive a high school diploma if the former student has qualified to graduate in accordance with Texas Education Code (TEC), §28.02541. The rule currently states that this provision expires on September 1, 2019.

SB 213, 86th Texas Legislature, 2019, amended the TEC, §28.02541, to extend the expiration date of the provision that allows certain former students who have completed the curriculum requirements for graduation but have not performed satisfactorily on assessment instruments to qualify for a high school diploma to September 1, 2023. To implement SB 213, the proposed amendment would modify the rule by extending the expiration date to September 1, 2023.

FISCAL IMPACT: Lily Laux, deputy commissioner for school programs, has determined that for the first five-year period the proposal is in effect there are no additional costs to state or local government, including school districts and open-enrollment charter schools, required to comply with the proposal.

LOCAL EMPLOYMENT IMPACT: The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022.

SMALL BUSINESS, MICROBUSINESS, AND RURAL COMMUNITY IMPACT: The proposal has no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

COST INCREASE TO REGULATED PERSONS: The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.

TAKINGS IMPACT ASSESSMENT: The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under Texas Government Code, §2007.043.

GOVERNMENT GROWTH IMPACT: TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would expand an existing regulation due to the extension of the expiration date and increase the number of individuals subject to the rule's applicability by allowing more students to obtain high school diplomas.

The proposed rulemaking would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not limit or repeal an existing regulation; and would not positively or adversely affect the state's economy.

PUBLIC BENEFIT AND COST TO PERSONS: Ms. Laux has determined that for each year of the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the proposal would be ensuring that rule language is based on current law and provides additional options for former students to obtain a high school diploma. There is no anticipated economic cost to persons who are required to comply with the proposal.

DATA AND REPORTING IMPACT: The proposal would have no data and reporting impact.

PRINCIPAL AND CLASSROOM TEACHER PAPERWORK REQUIREMENTS: The TEA has determined that the proposal would not require a written report or other paperwork to be completed by a principal or classroom teacher.

PUBLIC COMMENTS: The public comment period on the proposal begins July 26, 2019, and ends August 26, 2019. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on July 26, 2019. A form for submitting public comments is available on the TEA website at https://tea.texas.gov/About_TEA/Laws_and_Rules/Commissioner_Rules_(TAC)/Proposed_Commissioner_of_Education_Rules/. Comments on the proposal may also be submitted to Cristina De La Fuente-Valadez, Rulemaking, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701.

STATUTORY AUTHORITY. The amendment is proposed under Texas Education Code (TEC), §28.02541, as amended by SB 213, 86th Texas Legislature, 2019, which extends the expiration date for districts to determine whether certain former students, who have met curriculum requirements for graduation but have not performed satisfactorily on an assessment instrument, may qualify to graduate and receive a high school diploma. The expiration date changed from September 1, 2019, to September 1, 2023. Subsection (f) requires the commissioner to adopt rules to implement the section; and TEC, §39.025, establishes the secondary-level performance required to receive a Texas high school diploma, establishes alternate assessment options for students who entered Grade 9 prior to the 2011-2012 school year or Grade 10 or above in the 2011-2012 school year, and requires the commissioner to establish satisfactory performance levels on the alternate assessments.

CROSS REFERENCE TO STATUTE. Texas Education Code, §28.02541, as amended by SB 213, 86th Texas Legislature, 2019, and §39.025.

§101.3024.Assessment Requirements for Students First Enrolled in Grade 9 Prior to 2011-2012 School Year or First Enrolled in Grade 10 or Above in 2011-2012 School Year.

(a) - (f) (No change.)

(g) Effective beginning with the 2017-2018 school year, a student who has taken but failed to meet assessment graduation requirements under this section may receive a Texas high school diploma if the student has qualified to graduate in accordance with the TEC, §28.02541.

(1) A student may not graduate under TEC, §28.02541 if the student did not take each assessment instrument or the part of the assessment instrument for which the student has not performed satisfactorily at least three times.

(2) This subsection expires September 1, 2023 [2019].

(h) - (i) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 12, 2019.

TRD-201902189

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: August 25, 2019

For further information, please call: (512) 475-1497