81(R) SB 175 - 2nd reading F5 (S)



	
Amend SB 175 (Senate committee printing) by adding the 
following appropriately numbered SECTIONS to the bill and by 
renumbering subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Chapter 56, Education Code, is amended by 
adding Subchapter R to read as follows:

SUBCHAPTER R. SCHOLARSHIPS FOR STUDENTS GRADUATING 

IN TOP 10 PERCENT OF HIGH SCHOOL CLASS
	Sec. 56.481.  PURPOSE.  The purpose of this program is to 
encourage attendance at public institutions of higher education in 
this state by outstanding high school students in the top 10 percent 
of their graduating class.
	Sec. 56.482.  DEFINITIONS. In this subchapter:                          
		(1)  "Coordinating board" means the Texas Higher 
Education Coordinating Board.
		(2)  "Institution of higher education" has the meaning 
assigned by Section 61. 003.
		(3)  "Program" means the scholarship program 
authorized by this subchapter.
	Sec. 56.483.  AWARD OF SCHOLARSHIP.  (a) The coordinating 
board shall award scholarships to eligible students under this 
subchapter.
	(b)  An institution of higher education shall provide to a 
student who receives a scholarship under the program for a semester 
or other academic term:
		(1)  a credit in the amount of the scholarship, to be 
applied toward the payment of any amount of educational costs 
charged by the institution for that semester or term; and
		(2)  a check, electronic transfer, or other 
disbursement of any remaining scholarship amount.
	(c)  An amount paid under Subsection (b)(2) may be applied 
only to any usual and customary cost incurred by the student to 
attend the institution.
	Sec. 56.484.  INITIAL ELIGIBILITY FOR SCHOLARSHIP.  To be 
eligible for a scholarship under this subchapter, a student must:
		(1)  have graduated from a public or accredited private 
high school in this state while ranked in the top 10 percent of the 
student's graduating class, subject to Section 56.486(b);
		(2)  have completed the recommended or advanced high 
school curriculum established under Section 28.025 or its 
equivalent;
		(3)  have unmet financial need, as defined by 
coordinating board rule;
		(4)  enroll as a first-time freshman student in an 
institution of higher education not earlier than the 2010-2011 
academic year and not later than the 16th month after the date of 
the student's high school graduation;
		(5)  be a Texas resident under Section 54.052; and                     
		(6)  comply with any other eligibility requirements 
established by coordinating board rule.
	Sec. 56.485.  AMOUNT OF SCHOLARSHIP; 
LIMITATION.  (a)  Except as provided by Subsections (b) and (c), 
for each semester or other academic term in which an eligible 
student is enrolled at an institution of higher education, the 
amount of a scholarship is the amount established by coordinating 
board rule, not to exceed $1,000.
	(b)  The coordinating board may award a bonus amount, not to 
exceed an additional $1,000 for each semester or other academic 
term, to each eligible student who:
		(1)  is classified as a junior or senior at an 
institution of higher education;
		(2)  has declared a major in a field with a workforce 
shortage, as determined by coordinating board rule; and
		(3)  makes satisfactory academic progress as required 
by Section 56.488.
	(c)  In any academic year, the statewide aggregate of 
scholarships awarded under the program may not exceed amounts 
appropriated for the program for that year.
	(d)  The coordinating board shall issue to each eligible 
student a certificate indicating the amount of the scholarship 
awarded to the student.
	Sec. 56.486.  APPLICATION PROCEDURE.  (a) The coordinating 
board shall establish application procedures for the program. The 
procedures may require an officer of the applicable high school or 
school district to verify the eligibility of a student to receive a 
scholarship under the program.
	(b)  The coordinating board may permit a student to establish 
initial eligibility based on the student's class rank at the end of 
the student's seventh semester in high school. The board may revoke 
an initial scholarship awarded to a student who subsequently loses 
eligibility based on the student's class rank on graduation from 
high school.

	(c)  The coordinating board may consider applications 
received after the application deadline only if sufficient funding 
for scholarships remains after the board awards scholarships to all 
eligible students who applied on or before the deadline.
	(d)  The coordinating board shall establish procedures to 
notify each eligible student of the receipt of a scholarship under 
the program and to enable an institution of higher education to 
verify the award of a scholarship to a student who is enrolled at 
that institution.
	Sec. 56.487.  CONTINUING ELIGIBILITY FOR 
SCHOLARSHIP.  (a)  After establishing eligibility to receive an 
initial scholarship under the program, a student may continue to 
receive additional scholarships during each subsequent semester or 
other academic term in which the student is enrolled at an 
institution of higher education if the student:
		(1)  has unmet financial need, as defined by 
coordinating board rule;
		(2)  makes satisfactory academic progress as required 
by Section 56.488;
		(3)  submits to the institution transcripts for any 
coursework completed at other public or private institutions of 
higher education; and
		(4)  complies with any other eligibility requirements 
established by coordinating board rule.
	(b)  If a student fails to meet any of the requirements of 
Subsection (a) after completing a semester or other academic term, 
the student may not receive a scholarship during the next semester 
or other academic term in which the student enrolls. A student may 
become eligible to receive a scholarship in a subsequent semester 
or term if the student:
		(1)  completes a semester or term during which the 
student is not eligible for a scholarship; and
		(2)  meets all the requirements of Subsection (a).                     
	(c)  Except as provided by Section 56.489(b), a student's 
eligibility for a scholarship under the program ends on the fourth 
anniversary of the first day of the semester or other academic term 
for which the student was awarded an initial scholarship under the 
program.
	Sec. 56.488.  SATISFACTORY ACADEMIC PROGRESS.  (a)  For each 
academic year in which a student receives one or more scholarships 
under the program, the student must:
		(1)  complete for that year:                                           
			(A)  at least 75 percent of all credit hours 
attempted, as determined by the institution of higher education in 
which the student is enrolled; and
			(B)  at least 30 credit hours or the number of 
credit hours needed to complete the student's degree or certificate 
program, whichever is less; and
		(2)  except as permitted by Subsection (b), maintain an 
overall grade point average of at least 3.25 on a four-point scale 
or its equivalent for all coursework attempted at any public or 
private institution of higher education.

	(b)  A student who receives a bonus amount under Section 
56.485(b) must maintain during the student's junior or senior year 
an overall grade point average of at least 3.00 on a four-point 
scale or its equivalent for all coursework attempted at any public 
or private institution of higher education.
	Sec. 56.489.  EXCEPTION FOR HARDSHIP OR OTHER GOOD CAUSE.  
(a)  Each institution of higher education shall adopt a policy to 
allow a student who fails to make satisfactory academic progress as 
required by Section 56.488 to receive a scholarship in a subsequent 
semester or other academic term on a showing of hardship or other 
good cause, including:
		(1)  a showing of a severe illness or other 
debilitating condition that could affect the student's academic 
performance; or
		(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 could affect the student's academic performance.
	(b)  An institution of higher education may extend the 
eligibility period described by Section 56.487(c) in the event of 
hardship or other good cause as provided by the institution's 
policy adopted under Subsection (a).
	(c)  An institution of higher education shall maintain 
documentation of each exception granted to a student under this 
section and shall provide timely notice of those exceptions to the 
coordinating board.
	Sec. 56.490.  PUBLICATION OF PROGRAM INFORMATION.  (a)  The 
coordinating board shall publish and disseminate general 
information and rules for the program as provided by Subsection (b) 
and as otherwise considered appropriate by the board.
	(b)  The coordinating board shall provide application 
instructions to:
		(1)  each school district and each institution of 
higher education; and
		(2)  an individual student on request.                                 
	Sec. 56.491.  REIMBURSEMENT.  (a)  Each institution of 
higher education that provides scholarships under the program to 
eligible students enrolled at the institution is entitled to 
reimbursement by the coordinating board of the amounts provided.  
The institution must request reimbursement in the manner specified 
by coordinating board rule.
	(b)  On approval of an institution's request for 
reimbursement, the coordinating board shall direct the comptroller 
to transfer the appropriate amount to the institution.  The 
institution may use the transferred funds as reimbursement for any 
credits provided to students under this subchapter, to reimburse 
students for charges previously paid to the institution, or to make 
scholarship payments to students, as applicable.
	Sec. 56.492.  RULES.  The coordinating board shall adopt 
rules as necessary to administer the program under this subchapter.
	SECTION ____.  (a)  The Texas Higher Education Coordinating 
Board shall adopt rules to administer Subchapter R, Chapter 56, 
Education Code, as added by this Act, as soon as practicable after 
the effective date of this Act.  For that purpose, the coordinating 
board may adopt the initial rules in the manner provided by law for 
emergency rules.
	(b)  The Texas Higher Education Coordinating Board shall 
begin awarding scholarships under Subchapter R, Chapter 56, 
Education Code, as added by this Act, for the first academic year 
for which money is appropriated for that purpose, except that the 
coordinating board may not award scholarships under that subchapter 
for an academic year before the 2010-2011 academic year.



OGDEN                                                                       

URESTI                                                                        

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