83R3466 KSD-F
	By: Fletcher	H.B. No. 830

	A BILL TO BE ENTITLED
	AN ACT
	relating to the portion of designated tuition set aside to provide
	student financial assistance at institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 56.011 and 56.012, Education Code, are
	amended to read as follows:
	Sec. 56.011.  RESIDENT UNDERGRADUATE STUDENT ASSISTANCE.
	(a) The governing board of each institution of higher education may
	[shall] cause to be set aside not more [less] than 15 [20] percent
	of any amount of tuition charged to a resident undergraduate
	student under Section 54.0513 in excess of $46 per semester credit
	hour. The funds set aside under this section by an institution
	shall be used to provide financial assistance for resident
	undergraduate students enrolled in the institution.
	(b)  From the funds set aside by an institution under this
	section, the institution shall first fund any tuition and fee
	exemptions required under Section 54.341 for veterans and other
	military personnel and their dependents and surviving family
	members enrolled as undergraduate students at the institution.
	(c)  To be eligible for assistance from any remaining funds
	available under this section after the use of those funds required
	by Subsection (b), a student must establish financial need in
	accordance with rules and procedures established by the Texas
	Higher Education Coordinating Board. Priority shall be given to
	students who meet the coordinating board definition of financial
	need and whose cost for tuition and required fees is not met through
	other non-loan financial assistance programs.
	(d) [(c)]  The financial assistance provided under
	Subsection (c) [this section] may include grants, scholarships,
	work-study programs, student loans, and student loan repayment
	assistance.
	Sec. 56.012.  RESIDENT GRADUATE STUDENT ASSISTANCE. (a)
	The governing board of each institution of higher education may
	[shall] cause to be set aside not more [less] than 15 percent of any
	amount of tuition charged to a resident student enrolled in a
	graduate or professional degree program under Section 54.0513 in
	excess of $46 per semester credit hour. The funds set aside under
	this section by an institution shall be used to provide financial
	assistance for resident students enrolled in graduate and
	professional degree programs at the institution.
	(b)  From the funds set aside by an institution under this
	section, the institution shall first fund any tuition and fee
	exemptions required under Section 54.341 for veterans and other
	military personnel and their dependents and surviving family
	members enrolled in graduate and professional degree programs at
	the institution.
	(c)  To be eligible for assistance from any remaining funds
	available under this section after the use of those funds required
	by Subsection (b), a student must establish financial need in
	accordance with rules and procedures established by the Texas
	Higher Education Coordinating Board. Priority shall be given to
	students who meet the coordinating board definition of financial
	need and whose cost for tuition and required fees is not met through
	other non-loan financial assistance programs.
	(d) [(c)]  The financial assistance provided under
	Subsection (c) [this section] may include grants, scholarships,
	work-study programs, student loans, and student loan repayment
	assistance.
	SECTION 2.  Section 56.014(a), Education Code, is amended to
	read as follows:
	(a)  An institution of higher education that sets [is
	required by this subchapter to set] aside a portion of a student's
	tuition payments to provide financial assistance for students
	enrolled in the institution under this subchapter shall provide to
	each student of the institution who pays tuition from which a
	portion is [required to be] set aside for that purpose a notice
	regarding the specific amount that is [required to be] set aside by
	the institution.
	SECTION 3.  Section 56.465(a), Education Code, is amended to
	read as follows:
	(a)  The governing board of each institution of higher
	education shall cause to be set aside five percent of the amount of
	the tuition charged to a resident undergraduate student at the
	institution under Section 54.0513 in excess of $46 per semester
	credit hour. The amount of a student's tuition set aside under this
	subsection is not considered a part of the amount, if any, [required
	to be] set aside from that tuition under Section 56.011.
	SECTION 4.  The changes in law made by this Act apply
	beginning with designated tuition set aside by an institution of
	higher education for the 2014 fall semester. Designated tuition
	set aside for a semester or term before the 2014 fall semester is
	governed by the law in effect immediately before the effective date
	of this Act, and the former law is continued in effect for that
	purpose.
	SECTION 5.  This Act takes effect January 1, 2014.