TG

The Guarantor of Choice SM

TG's Legislative Report

April 8, 2005

There are about 50 days left in both the first Session of the 109th Congress and 79th Regular Session of the Texas Legislature.

Congressional Update; FY 2006 Budget Resolutions Passed; Student Aid Provisions Differ Dramatically

The House and Senate have adopted their FY 2006 Budget Resolutions. The Resolutions will be combined into a single document which will be the "blueprint" that the House and Senate Appropriations Committees will use in setting specific spending levels for federal programs within the 13 individual appropriations bills.

The House Resolution, passed by a 218-214 vote, calls for total FY 2006 spending of $2.6 trillion, $843 billion in discretionary spending ($419.5 billion for Defense and $423.5 for non-Defense), and $106 billion in selected tax reductions through 2010.

The Senate Resolution, passed by a 51-49 vote, and calls for spending $2.6 trillion next year, $843 billion in discretionary spending ($439 for Defense and $404.5 for non-Defense), and $134 billion in selected tax cuts through 2010.

Both Resolutions include $50 billion for FY 2006 spending on the "war on terror".

The House Resolution proposes to repeal the TRIO, GEAR UP, LEAP, and Perkins Loan programs and level fund the other Title IV student aid programs, except for a $100 increase in the annual maximum Pell Grant and retirement of the $4.3 billion shortfall in the program.

The Senate Resolution proposes to continue the Title IV programs that the House and Administration propose to repeal, and increase funding to retire the Pell Grant shortfall and to increase the maximum annual Pell Grant to $4,500 in 2006 through $5.4 billion in savings to be taken from reforms in the student loan program. The Resolution also proposes to set aside $5 billion for HEA reauthorization costs and to fund a new program to partially forgive student loans of Pell Grant recipients who graduate in four years.

This year the House and Senate Budget Resolutions include Reconciliation Instructions (See below for an explanation of the reconciliation process).

Reconciliation involves the two Budget Committees setting a gross targeted savings in mandatory spending to be apportioned among the various authorizing committees. The savings are to be gained through legislation developed by the authorizing committees to amend the laws under their jurisdiction in ways that will achieve each committee's assigned mandatory savings goal. This year, the Reconciliation Instructions in the House Budget Committee's Resolution sets a total savings target of $68.6 billion over five years The Education and Workforce's portion of this savings target is $21.4 billion over five years and $2.1 billion for FY 2006. About 30 percent of the five year total is assumed to come from the student loan program.

The Senate Budget Committee's Reconciliation Instructions include a savings of $17 billion over a five year period. The Health, Education, Labor,and Pensions (HELP) Committee portion of this target is $8.6 billion over a five year period, and $2.2 billion About 80 percent of the total is assumed to come from the student loan program.

To achieve its targeted savings, the House Education and Workforce Committee and the Senate HELP Committee have ample room to maneuver when considering estimated savings already put forward by the Office of Management and Budget and the Congressional Budget Office.

For example, the Administration, while proposing the Pell Grant program be sufficiently funded over the next five years to achieve a $100 annual increase in the annual maximum grant in order to have a maximum grant of $4,550 by 2010 and to retire the $4.3 billion shortfall in the program, is proposing estimated savings of $19 billion over a ten year period from reforms in the Federal Family Education Loan Program (FFELP).

The Administration's budget submission proposes to abolish the Perkins Loan, GEAR UP, TRIO, Upward Bound, and Talent Search programs to achieve an additional savings, and to hold the other Title IV student aid programs to a maximum 2 percent increase over current year appropriations.

The Administration's FY 2006 appropriations submission can be accessed at www.omb.gov.

The Congressional Budget Office's annual Budget Options report to the congress released this month identifies $31.5 billion in potential savings over ten years from the student loan programs to be gained from changes targeted at borrowers and FFELP lenders. Estimates include $2. billion from repealing the 9.5 percent guaranteed yield on FFELP loans, $7.7 billion from excluding access to subsidized loans for graduate students, $2.9 billion from raising the borrower interest rate, and $18.9 billion from repealing the guaranteed interest rate floor for FFELP lenders.

CBO Budget Options can be accessed at www.cbo.gov.

The education options begin on page 12.

Summaries of the House and senate Budget Resolutions and support documents are available at www.house.gov/budget/ and www.senate.gov/~budget/republican/.

Higher education related legislation of interest filed during the First Session of the 109th Congress. Congressional legislation can be accessed at thomas.loc.gov.

HR 507 — College Access and Opportunity Act of 2005 (Replaced by HR 609)
This bill is the initial House Republicans' Higher Education Reauthorization bill to be introduced during the 109th Congress. It is, essentially, a refilled HR 4283 from the 108th Congress, which had the same title (with the exception of the year).

Among the bill's provisions, HR 507 proposes to:

  • revise the definition of higher education institution that brings proprietary schools under the definition;
  • repeal provisions that apply to proprietary schools;
  • move all student loans to a variable interest rate;
  • reduce student loan origination fees;
  • increase student loan annual limits;
  • reauthorize and amend the loan guaranty VFA provision by repealing inducement waiver provision;
  • revise the campus-based allocation formula;
  • reinstate student loan provisions for low default schools to allow quicker disbursement of loan funds to students;
  • increase Pell Grant funding;
  • strengthen funding for Title III and Title V institutions;
  • increase accountability, transparency, and access to cost and consumer information; and
  • expand teacher loan forgiveness programs.

HR 508 — The FED UP Higher Education Technical Amendments Act
This bill was filed as HR 12 during the 108th Congress and HR 4866 during the 107th Congress. Among the bill's provisions, it proposes to extend the provisions concerning exemptions from the 30 day delayed disbursements of student loan funds to first time borrowers and multiple disbursements of loan funds for low default schools, clarifies return of Title IV fund regulations, allow student loan forbearances to be requested in writing. HR 508 has one cosponsor.

HR 509 — International Studies in Higher Education Act
This bill is HR 3077 filed during the 108th Congress. It proposes to reauthorize Title VI of the HEA and establishes a program to support and promote international studies for students who pursue careers in international relations. HR 3077 was passed by the House last year.

HR 510 — Graduate Opportunities in Higher Education Act
This bill was filed during the 108th Congress as HR 3076 and was passed by the House. The bill proposes to reauthorize Title VII of the HEA and adds a new provision that promotes graduate teacher education programs in K-12 shortage areas.

HR 511 — Pell Grant Plus Act
This bill was introduced last year as HR 3894. The bill proposes to award an additional Pell Grant of $1,000 for two years to Pell recipients who graduate from high school with a postsecondary education preparatory diploma.

HR 555 — School As Lender Reform Act
This bill proposes to amend and clarify the school as lender program authorized under Section 435(d)(2) of the HEA, to require revenues generated to a participating institution are to be used to supplement need based grants already in existence, that contracts between schools and lenders by awarded through competitive bidding, and that participating schools offer lower amounts of loan aid to their student aid recipients.

HR 609 — College Access and Opportunity Act of 2005
Substitute for HR 507. HR 609 differs from HR 507 with respect to the Pell Grant provision. This bill has two cosponsors.

HR 625
This bill proposes to amend the IRS Code to prohibit the use of Pell Grant and SEOG as offsets to the Hope Scholarship Tax credit.

HR 670 — Teacher Recruitment and Retention Act of 2005
This bill proposes to make the student loan forgiveness increase $17,500 included in the last two appropriations bills permanent.

HR 1009
This bill proposes to allow student loan borrowers who have consolidated their loans to reconsolidate with their choice of lender or consolidator.

HR 1030
This bill requires institutions to enter into agreements with for profit organizations for participation in the federal Work-Study program.

HR 1032
This bill proposes to extend the single disbursement for student loans for low default rate schools.

HR 1033
This bill proposes to eliminate the limitation of the deduction of student loan interest on income tax returns.

HR 1293 — Access and Equity in Higher Education Act
This is the re-filed HR 4102 from the 108th Congress which did not pass. It is the Coalition for Better Student Loans HEA reauthorization bill which proposes to increase annual and aggregate student loan limits, reduce loan fees, make all student loans subject to a variable interest rate, and, extends the FDLP income sensitive repayment plan to the FFELP. HR 1293 has 24 cosponsors.

HR 1338 — College Loan Assistance Act
This bill proposes to allow borrowers with consolidated student loans to reconsolidate their debt. The bill also proposes to increase the annual maximum Pell Grant to $7,000.

HR 1425 — Student Aid Reward Act (STAR) of 2005
This bill, originally introduced during the last congress as the Direct Loan Reward Act (HR 4370) proposes to provide financial incentives to institutions if they switch participation from the higher cost of the two major student loan programs to the lower cost program (FFELP and FDLP). Any savings to the federal government resulting from the switch would be split 50/50 between the school and the federal government for use in other student financial aid. The Congressional Budget Office has estimated the bill could generate a federal savings of up to $12 billion over 10 years. The intent of the bill is that this savings would be used to double the appropriation for the Pell Grant program by almost 100 percent over this period. HR 1425 has 31 cosponsors, the most of any HEA reauthorization-related bill.

S. 9 — Lifetime of Education Opportunities Act of 2005
This is a "sense of the senate" Republican omnibus education bill that includes HEA reauthorization provisions. It is, for the most part, legislation that expresses "the sense of the Senate" concerning a host of K-16 education issues. Included among these are, that during the reauthorization process the Senate should:

  • address "the rising costs of higher education";
  • "promote student academic preparation";
  • "encourage efforts to increase the availability of financial aid information";
  • "simplify the student aid application process";
  • "improve the level of accountability in the federal student aid programs";
  • "address the Pell Grant shortfall";
  • "reduce the time to graduation"; and
  • support stronger partnerships between businesses and higher education".

The bill includes "sense of the Senate" clauses concerning minority serving institutions. S. 9 has two cosponsors.

S. 15 — Quality Education for All Act
This is the Senate Democrat "sense of the senate" education bill that includes HEA reauthorization provisions. Among its higher education-related provisions, this bill proposes to:

  • reauthorize and increase the authorized appropriations for the TRIO and GEAR UP programs;
  • hold certain Pell grant recipients harmless when the annual tax table updates are made;
  • provide a "sense of the Senate " provision that states the maximum annual Pell Grant for 2006-2007 should be $5,100;
  • exempt payment of tuition and fees and increase student loan forgiveness (to be paid for through diversion of FFELP special allowance payments authorized under Sec. 438(b )) for students planning to teach mathematics, science, and special education; and
  • expand the income tax deduction for higher education expenses.

S. 371 — The College Quality, Affordability, and Diversity Improvement Act of 2005
This is the refilled S. 1793, the Senate Democrat's HEA reauthorization bill from the last Congress. Among the bill's provisions, the bill proposes to:

  • raise the annual authorized levels for the Pell Grant, TRIO, GEAR UP, LEAP, Title III and Title V programs;
  • increase the student loan forgiveness amounts for certain teachers;
  • increase the amount of earnings exempted from the need analysis process;
  • eliminates the student loan origination fee;
  • indexes each state's share of Pell Grant funding to the state's effort in providing student aid;
  • allows reconsolidation of student loans into the FDLP;
  • establishes a comprehensive program to increase recruitment, retention, and graduation of low income students; and
  • establishes a competitive grant program to fund initiatives to reduce college costs.

S. 371 has six cosponsors.

S. 371 includes provisions from HR 1425 — the Student Aid Reward (STAR) Act that proposes to provide financial incentives to institutions if they switch participation from the FFELP to the FDLP.

S.Res. 8 — Expressing the sense of the Senate regarding the maximum Federal Pell Grant
This senate resolution states the sense of the senate is that the maximum Pell Grant for 2005-2006 should be $4,500 and for 2010-2011, $9,000.

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State Legislative Update; House and Senate Appropriations Bills Differ In Approach and Funding

The House and Senate FY 2006-2007 appropriations bills are taking shape.

Both bills, HB1 and SB1 Have been passed by the House and Senate.

The Senate has passed its bill (SB1).

The bills will now be reconciled in a conference committee.

The Senate bill proposes $139 billion is spending for the two year 2006-2007 biennium. The House bill provides $137.5 billion.

For student financial aid, the bills propose:

Senate — appropriations for the TEG program totaling $141 million,
House — $133.8 million, slightly less than the $141.4 million for the current biennium;

Senate — appropriations for the TEXAS Grant program to be not less than $294.5 million,
House — $322.8 million, a decrease from $324 million for the current biennium;

Senate — appropriations for the TEXAS Grant II program to be not less than $10 million, an increase from $9.8 million for the current biennium,
House — $8.8 million;

Senate — new appropriations for the Texas B On Time Loan Program of $88 million,
House — new appropriations of $10.8 million;

Senate — appropriations for the College Work-Study program to be not less than $15 million,
House — $9.4 million, an increase from $8.8 million for the current biennium;

Senate — appropriations for the Teach for Texas program totaling $10.4 million, an increase from $10 million for the current biennium,
House — $9 million;

Senate and House — appropriations for the Early High School Graduation program totaling $8.6 million, up from $4.6 million for the current biennium.

Senate — Proposed total appropriations for student financial aid for the 2006-2007 biennium equals $590.4 million — which includes new spending for the B-On Time Loan program — compared to the House's $514 million. The current biennium's total is $512 million.

Both bills can be accessed at www.lbb.state.tx.us/The_LBB/Access/AppBills_LBEs.htm.

The following higher education/student financial aid related bills have been prefiled for consideration during the Session.

Full background and details of each bill can be accessed at Texas Legislature Online (www.capitol.state.tx.us).

HB 19 — Relating to tuition and fee rebates for timely completion of degree programs offered by general academic teaching institutions.

HB 20 — Relating to a pilot program to provide reduced undergraduate tuition during a summer term or session at Texas A&M University.

HB 37 — Relating to automatic admission of undergraduate students to a general academic teaching institution that is a component institution of a university system. This bill proposes to allow students admitted under the state's "Top 10 percent" law to an institution that is a part of the University of Texas System, Texas A&M University System, Texas State University System, Texas Tech University System, University of Houston System, and University of North Texas System to be enrolled by the system at any component institution within that system.

HB 40 — Relating to tuition assistance granted to certain members of state military forces attending public or private institutions of higher education. This bill proposes to amend section 431.090 of the state government code to require that priority be given to members called to active duty during a national emergency.

HB 64 — Relating to the automatic admission to public institutions of higher education of certain undergraduate transfer students. This bill proposes to require public general academic institutions to automatically admit graduates of the state's public community colleges who receive a degree with a 3.0 GPA.

HB 133 — Relating to the award of academic credit to a student at an institution of higher education for the completion of certain military training. This bill proposes to allow certain public institutions of higher education to award credit toward completion of a degree program for certain military training that satisfies the institution's requirements for a course.

HB 328 — Relating to promoting the importance of higher education in public schools. This bill proposes to require each school district and charter school to designate one week during the year "Education. Go Get It Week", during which each student would receive information concerning higher education opportunities and benefits, student financial aid, academic requirements, automatic admission criteria, etc. Also, each venue would be required to have at least one speaker make a presentation on the importance of obtaining a postsecondary education.

HB 397 — Relating to providing for a student who qualifies for automatic admission to an institution of higher education to maintain that status for transferring between institutions in certain circumstances. This bill proposes to allow a student who was granted automatic admission to an institution under the state's "top 10 percent law" to maintain that status if he/she transfers to another institution and has maintained at least a 3.25 GPA while satisfactorily progressing through a "core curriculum".

HB 503 — Relating to tuition and fee exemptions for certain military personnel and children of those personnel. This bill proposes to grant tuition and fee exemptions to all Texas residents who are honorably discharged veterans extending from the Spanish Civil war to any future "national emergency".

HB 609 — Relating to tuition rebate incentives for persons who complete certain degree and certificate programs without excessive credit hours. This bill proposes to allow tuition rebates to graduates of public community colleges who graduate with no more than three semester hours in excess of the sixty hours needed for a degree.

HB 656 — Relating to the eligibility of a high school graduate for automatic admission to an institution of higher education. This bill proposes to replace the current "top 10 percent automatic admission law" with a requirement that beginning in 2008, automatic admission to a university will be contingent on a student completing the recommended or distinguished curriculum and have graduated in the top 10 percent of his/her high school class if graduating before 2009, and in the top 5 percent of his/her class in graduating in 2009 and beyond. The bill allows for exemptions for students who graduate from high schools that do not offer all of the recommended curriculum courses.

HB 1010 — Relating to the eligibility of children of certain military personnel to receive Texas B-On-Time loans. This bill proposes to make children of members of the armed forces who graduated from a high school operated by the defense department eligible for B On Time loans.

HB 1019/HB 2687 — Relating to the rates of tuition charged to students of institutions of higher education. This bill proposes to limit the maximum rate of designated tuition charged under section 54.0513 to that charged under section 54.051 of the state education code.

HB 1046 — Relating to the automatic admission on undergraduate students to general academic teaching institutions. This bill proposes to limit automatic admissions to public universities under the state's "top 10 percent" law to 50 percent of each entering freshman class.

HB 1060 — Relating to exempting certain persons in transitional living programs from payment of tuition and fees at public institutions of higher education. This bill proposes to grant tuition exemptions to persons living in transitional living youth projects operating under the Runaway and Homeless Youth Act.

HB 1170 — Relating to readmission to a public institution of higher education of students who withdraw to perform active military service. This bill proposes to allow eligible persons under section 51.9242 of the education code to be readmitted, within one year after release from the military, to a public higher education institution without reapplication.

HB 1172 — Relating to the tuition charged to resident undergraduate students of institutions of higher education for excess credit hours and to related formula funding. This bill proposes to amend section 54.068(a) and (c) of the state education code to allow a higher tuition to be charged to a student who exceeds the number of credit hours needed for a degree by 115 percent (rather than the current 45 hours).

HB 1214/SB 532 — Relating to tuition for a student registered in a public community college. This bill proposes to allow public community colleges to set differential tuition rates by course.

HB 1407 — Relating to an exemption from tuition and fees at public institutions of higher education for children of certain employees of the Texas Forest Service with fire-fighting, rescue, or other special duties who are killed or disabled in the line of duty. This bill proposes to exempt from payment of tuition and fees children of disabled or deceased Forest Service firefighters killed in the line of duty.

HB 1450/HB 1521/SB 722 — Relating to the creation of the TexasNextStep grant program to pay tuition and required fees and textbook costs of certain students enrolled in two-year public institutions of higher education in this state. This bill proposes to offer to pay the tuition, required fees, and textbook costs for Texas residents attending a public community college and making satisfactory progress toward an associate degree.

HB 1482 — Relating to reports regarding the use of race, color, ethnicity, or national origin by public institutions of higher education in admissions. This bill proposes to require institutions that use any of the listed criteria in selecting applicants for enrollment, the institutions must submit an annual report detailing the process and use of the criteria to the legislature and Coordinating Board and make the report available to the general public.

HB 1527 — Relating to a breach of the security of a data system that includes another person's identifying information. This bills proposes to adding a chapter to the state's business and commerce code to require notification to a person whose identifying information has been accessed through a breach of a data system maintained by a person who owns or licenses data.

HB 2034 — Relating to an exemption from or refund of tuition and fees for certain lower-division students enrolled in a general academic teaching institution. This bill proposes to allow a high performing student to receive a refund of tuition and fees and be exempt from payment of tuition and fees during the freshman and sophomore years.

HB 2330 — Relating to the automatic admission of undergraduate students to general academic teaching institutions. This bill proposes to limit the state's "top 10 percent" beginning in 2009.

HB 2688 — Relating to a limitation on increases in the total amount of tuition and compulsory fees charged by public institutions of higher education. This bill proposes to set an annual maximum increase of 3 percent on the amount a public university may increase its tuition and fees.

HB 3074 — Relating to the number of semester credit hours required for completion of a baccalaureate degree program at a general academic teaching institution. This bill proposes to place a limit on the number of credit hours an institution can require for completion of a degree program, using the Southern Association of Colleges and Universities guidelines.

HB 3075 — Relating to the components of the core curriculum for public institutions of higher education. This bill proposes to require public institutions of higher education to develop a common core curriculum of between 36 and 42 credit hours.

HB 3119 — Relating to the grade point average of and imposition of a fee on a student who repeats a course at a public institution of higher education. This bill proposes require a standard treatment of grades received by undergraduates repeating a course and allows institutions to charge a fee to students repeating a course.

HB 3133 — Relating to the enrollment of certain first generation higher education students in the prepaid higher education tuition program. This bill proposes to allow parents of potential first generation college students to enroll in the state's prepaid tuition program notwithstanding if enrollment has been suspended.

HB 3370/SB 1671 — Relating to higher education tuition exemptions for members of certain groups that are underrepresented among the faculty or administration of public junior colleges. This legislation proposes to exempt from payment of tuition and fees a Texas resident graduate student who is employed by a junior college, is in a population group that is underrepresented among the college's faculty and administration, and graduated from a low performing high school.

SB 30 — Relating to tuition and fee exemptions for students contracting to graduate in a timely manner from public institutions of higher education. This bill proposes to allow a student to enter into a contract with the institution to receive an exemption for payment of tuition and fees in return for the student graduating within the prescribed time for the degree and maintaining a 15 credit hour per semester course load.

SB 31 — Relating to requiring students receiving certain financial aid at institutions of higher education to meet timely graduation and academic progress requirements. This bills proposes to substitute "30 hours" for the" 75 percent completion" satisfactory academic progress requirement in the TEXAS Grant and Tuition Equalization Grant programs after the freshman year, and apply the same requirements as those for the Texas B-On Time loan program.

SB 32 — Relating to certain special tuition rates at institutions of higher education. This bill proposes to allow institutions to charge lower tuition rates for summer sessions.

SB 33 — Relating to graduate stipends awarded as part of the Texas B-On Time loan program. This bill proposes to allow graduate students who received B-On Time loans as undergraduates to qualify for $2,500 graduate stipends.

SB 34/HB 2332 — Relating to the tuition rebate program for certain undergraduates at certain public institutions of higher education. This bill proposes to allow a tuition rebate for undergraduates who graduate within the prescribed time for their degree as required for a Texas B-On Time loan.

SB 71 — Relating to the prohibition of certain disclosures of a consumer's financial information. This bill is the same as SB 76, except it does not include the consumer "opt-in" provisions.

SB 76 — Relating to a consumer's option to prevent the disclosure of the consumer's financial information by a financial institution and providing a civil penalty. This bill proposes to prohibit financial institutions from sharing consumers non public financial information for marketing purposes with another party unless the consumer is first provided a written privacy notice stating that the financial institution may not disclose the information unless the consumer opts-in (agrees). Under the bill, financial institutions may share the information with affiliates, but the affiliates may not, in turn, share the information without going through the "opt-in" process.

SB 79 — Relating to tuition exemptions granted by public institutions of higher education to children of certain classroom teachers. This bill proposes to provide tuition exemptions to children of school teachers who are certified by the National Board of Professional Teaching Standards and have taught in a critical teaching shortage field shortage area for 10 years.

SB 80 — Relating to the percentage of certain tuition set aside to fund financial assistance for resident undergraduate and graduate students at public institutions of higher education. This bill proposes to increase the percentage of the set aside from public university tuition charged above $46 per credit hour from 20 percent to 40 percent for resident undergraduate student aid, and from 15 percent to 20 percent for resident graduate student aid.

SB 122 — Relating to the prevention and punishment of identity theft and to assistance for certain victims of identity theft and the establishment of penalties for identity theft. This bill proposes to authorize the state attorney general to prosecute individuals accused of identity theft under section 32.51 of the state penal code and businesses that are shown to have mishandled consumers' personal information resulting in the information being used by those engaged in identity theft.

SB 302 — Relating to reports of strategies for increasing minority participation in higher education. This bill proposes to require each institution of higher education to report annually to the Coordinating Board its strategies for increasing the number of undergraduate and graduate students from racial and ethnic groups that are underrepresented in the institution's student body. The bill states that "underrepresented" is defined as members of a racial or ethnic group within a student body that is less than that of Texas' population.

SB 320/HB 750 — Relating to admission to certain public institutions of higher education. This bill proposes to amend the state's statutory policy of granting automatic admission to public universities to graduates in the top 10 percent of high school graduating classes by including the top 10 percent factor with the other 18 criteria to be considered for admission.

SB 333 — Relating to the eligibility of a high school graduate for automatic admission to an institution of higher education. This bill requires a student seeking admission to an institution under the state's "top 10 percent automatic admission law" to have graduated with the recommended high school curriculum. The bill allows exemption from this new requirement for graduates from high schools that do not offer all of the recommended courses as long as the graduate took all of those offered.

SB 392 — Relating to the residency requirements for tuition and fee exemptions for certain military personnel and their dependents. This bill limits the exemptions authorized under section 54.203 of the education code to Texas residents.

SB 420/HB 2274 — Relating to the continuation and functions of the Texas Guaranteed Student Loan Corporation. This is TG's Sunset bill which proposes to "reauthorize" TG for 12 years to September 30, 2017.

SB 470 — Relating to the portion of designated tuition set aside to fund financial assistance for resident undergraduate and graduate students at public institutions of higher education. This bill proposes to require institutions that charge more than $46/SCR, but less than $66/SCR in tuition to set aside 20 percent for financial aid, more than $66/SCR, but less than $86/SCR, 30 percent, and more than $86/SCR, 40 percent.

SB 530 — Relating to a fixed tuition rate provided by general academic teaching institutions to certain students for satisfactory academic progress performance. This bill proposes to freeze the tuition rate for students who satisfy the state's definition of satisfactory academic progress to the rate charged to the student as a freshman.

SB 531 — Relating to tuition charges for certain courses repeated by students attending public junior colleges. This bill proposes to allow a community college to charge a student a higher tuition rate for a repeated course.

SB 582 — Relating to tuition exemption and fee exemptions for certain military personnel and their dependents. This bill proposes to exempt from payment of tuition and fees certain children and spouses of members and former members of the military who are Texas residents or disabled (and disabled for spouses), completed 20 years of military service, and was not an officer.

SB 775/HB 1837 — Relating to tuition assistance for members of state military forces. This bill proposes to increase from 12 hours to 15 hours the amount of tuition which may be exempt from payment for Texas residents in the state guard and repeals the cap on the annual number of awards.

SB 817 — Relating to financial transaction awareness plans to be adopted by public institutions of higher education. This bill proposes to require each higher education governing board to develop and implement campus financial transaction awareness plans to educate students on the use of credit cards to be funded from fees paid by credit card issuers. The bill also includes application procedures and requirements that credit card issuers must meet in order to solicit business on campus.

SB 851 — Relating to a financial literacy pilot program in public schools. This bill proposes to establish a pilot program developed by TEA, Office of the Consumer Credit Commissioner, and the State securities Board in five schools districts that includes components concerning credit card debt, renting and home ownership, investments, savings, bank accounts, bankruptcy, and starting a small business.

SB 1181 — Relating to exempting a peace officer from tuition and fees charged by a public institution of higher education. This bill proposes to allow colleges and universities to exempt from payment of tuition and fees Texas residents who are peace officers.

SB 1227 — Relating to payment of the costs of attending public and private postsecondary educational institutions and to financial aid and other measures to assist students to pay those costs. This bill proposes an array of amendments to the Education Code that were generated through recommendations made by the Texas financial Aid Steering Committee in its report, Preparing for an Emerging Texas. Section 18 of the bill mandates the CB, with the SFA offices, conduct a biennial study on higher education costs and the amounts of student aid awarded.

SB 1228 — Relating to a statewide assessment and accountability system for public institutions of higher education. This bill proposes to establish a statewide assessment and accountability system to measure the effectiveness of Texas' public colleges and universities in serving the needs of Texas students in specific areas.

SB 1289 — Relating to authorizing a state university to conduct a one-time lottery. This bill proposes to allow public universities to conduct a one time lottery to generate funds for the institution to use to support the school. The legislation expires on September 1, 2006.

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TG Sunset Advisory Commission Review Update

TG's two Sunset bills (HB 2274 and the Senate companion bill, SB 420) are at the committee stage. The House Higher Education Committee took up the House bill on March 29th and, on April 4th, reported the bill favorably to the full House with the recommendation that it be passed. The Senate Government Organization Committee took up SB 420 on April 4th, received testimony, and, at the sponsor's request, left the bill pending in Committee to await House passage of the HB.

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For more information, contact:

TG Congressional and Legislative Relations
(512) 219-4503
P.O. Box 83100
Round Rock, TX 78683-3100

 

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