TITLE 19. EDUCATION

PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

CHAPTER 21. STUDENT SERVICES

SUBCHAPTER M. TEXAS COLLEGE WORK-STUDY PROGRAM

19 TAC §21.403

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §21.403, concerning the Texas College Work-Study Program. Specifically, §21.403(c)(3)(B) and (C) are amended to remove language pertaining to penalties for late reports or refunds because this provision does not benefit students if such penalties are imposed. This section has been renumbered accordingly.

Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Student Financial Aid Programs, has determined that for each year of the first five years the section is 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 the section is in effect, the public benefit anticipated as a result of administering this section will be the institutions' improved ability to meet the needs of their student populations. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Charles W. Puls, Ed.D., Deputy Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711, (512) 427-6365 or via email at 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 Texas Education Code §56.077 which authorizes the Coordinating Board to adopt rules to implement the Texas College Work-Study Program.

The amendments affect Chapter 21, Subchapter M of the TAC, §21.403.

§21.403.Institutions.

(a) - (b) (No change.)

(c) Responsibilities.

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

(3) Reporting[.]

[(A)] Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion. Such reporting requirements shall include reports specific to allocation and reallocation of grant funds (including the Financial Aid Database Report) as well as progress and year-end reports of program activities.

[(B) Penalties for Late Reports and/or Refunds.]

[(i) An institution that postmarks or electronically submits a report a week or more after its due date will be ineligible to receive additional funding through the reallocation occurring at that time.]

[(ii) The Commissioner may penalize an institution by reducing its allocation of funds in the following year by up to 10 percent for each report that is postmarked or submitted electronically more than a week late. The penalty may also be invoked if the report is timely, but refunds owed to the Program by the institution are not made to the Board or the State Comptroller's Office within one week after due.]

[(iii) The Commissioner may assess more severe penalties against an institution if any report or refund is received by the Board more than one month after its due date.]

[(iv) The maximum penalty for a single year is 30 percent of the school's allocation. If penalties are invoked in two consecutive years, the institution may be penalized an additional 20 percent.]

[(C) Appeal of Penalty. If the Commissioner determines that a penalty is appropriate, the institution will be notified by certified mail, addressed to the Program Officer and copied to the financial aid director. Within 21 days from the time that the Program Officer receives the written notice, the institution must submit a written response appealing the Board's decision, or the penalty shall become final and no longer subject to an appeal. An appeal under this section will be conducted in accordance with the rules provided in Chapter 1 of this title (relating to Agency Administration).]

(4) - (5) (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 February 9, 2017.

TRD-201700576

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: March 26, 2017

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