By: Lozano H.B. No. 3766       A BILL TO BE ENTITLED   AN ACT   relating to tuition and fee exemptions at public institutions of   higher education for legacy students who are eligible for tuition   and fee exemptions under the Hazlewood Legacy Program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  This Act shall be known as the Hazlewood Legacy   Preservation Act.          SECTION 1.01.  Section 54.341, Education Code, is amended by   amending Subsections (a), (c), (d), (h), (i), (k), (l), and (n) and   adding Subsection (a-5) to read as follows:          (a)  The governing board of each institution of higher   education shall exempt the following persons from the payment of   tuition, dues, fees, and other required charges, including fees for   correspondence courses but excluding general deposit fees, student   services fees, and any fees or charges for lodging, board, or   clothing, provided the person seeking the exemption currently   resides in this state and entered the service at a location in this   state, declared this state as the person's home of record in the   manner provided by the applicable military or other service, or   would have been determined to be a resident of this state for   purposes of Subchapter B at the time the person entered the service:                (1)  all nurses and honorably discharged members of the   armed forces of the United States who served during the   Spanish-American War or during World War I;                (2)  all nurses, members of the Women's Army Auxiliary   Corps, members of the Women's Auxiliary Volunteer Emergency   Service, and all honorably discharged members of the armed forces   of the United States who served during World War II except those who   were discharged from service because they were over the age of 38 or   because of a personal request on the part of the person that the   person be discharged from service;                (3)  all honorably discharged men and women of the   armed forces of the United States who served during the national   emergency which began on June 27, 1950, and which is referred to as   the Korean War; and                (4)  all persons who were honorably discharged from the   armed forces of the United States after serving on active military   duty, excluding training, for more than four years [180 days] and   who served a portion of their active duty during:                      (A)  the Cold War which began on the date of the   termination of the national emergency cited in Subdivision (3);                      (B)  the Vietnam era which began on December 21,   1961, and ended on May 7, 1975;                      (C)  the Grenada and Lebanon era which began on   August 24, 1982, and ended on July 31, 1984;                      (D)  the Panama era which began on December 20,   1989, and ended on January 21, 1990;                      (E)  the Persian Gulf War which began on August 2,   1990, and ends on the date thereafter prescribed by Presidential   proclamation or September 1, 1997, whichever occurs first;                      (F)  the national emergency by reason of certain   terrorist attacks that began on September 11, 2001; or                      (G)  any future national emergency declared in   accordance with federal law.          (a-5)  A person who received an exemption under this section   for an academic year before the 2017-2018 academic year continues   to be eligible for the exemption provided by this section as this   section existed on January 1, 2017.          (c)  A person may not receive exemptions provided for by this   section for more than a cumulative total of 150 credit hours. A   person may not receive an exemption provided for by this section   after the end of the 15th year after the date the member of the armed   forces of the United States who qualifies for an exemption under   Subsection (a) is honorably discharged.          (d)  The governing board of each institution of higher   education granting an exemption under this section shall require   each applicant claiming the exemption to submit to the institution,   in the form and manner prescribed by the Texas Higher Education   Coordinating Board [Veterans Commission] for purposes of this   section under Section 61.101(b) [434.0079(b), Government Code], an   application for the exemption and necessary evidence that the   applicant qualifies for the exemption not later than the last class   date of the semester or term to which the exemption applies, except   that the governing board may encourage the submission of an   application and evidence by the official day of record for the   semester or term to which the exemption applies on which the   institution must determine the enrollment that is reported to the   coordinating board [Texas Higher Education Coordinating Board].          (h)  The governing board of each institution of higher   education shall electronically report to the Texas Higher Education   Coordinating Board [Veterans Commission] the information required   by Section 61.102 [434.00791, Government Code,] relating to each   individual receiving an exemption from fees and charges under   Subsection (a), (a-2), (b), or (k). The institution shall report   the information not later than January 31 of each year for the fall   semester, June 30 of each year for the spring semester, and   September 30 of each year for the summer session.          (i)  The Texas Higher Education Coordinating Board [Veterans   Commission] may adopt rules to provide for the efficient and   uniform application of this section. In developing rules under   this subsection, the coordinating board [commission] shall consult   with [the Texas Higher Education Coordinating Board and]   institutions of higher education.          (k)  The Texas Higher Education Coordinating Board [Veterans   Commission] by rule shall prescribe procedures to allow:                (1)  a person who becomes eligible for an exemption   provided by Subsection (a) to waive the person's right to any unused   portion of the number of cumulative credit hours for which the   person could receive the exemption and assign the exemption for the   unused portion of those credit hours to a child of the person; and                (2)  following the death of a person who becomes   eligible for an exemption provided by Subsection (a), the   assignment of the exemption for the unused portion of the credit   hours to a child of the person, to be made by the person's spouse or   by the conservator, guardian, custodian, or other legally   designated caretaker of the child, if the child does not otherwise   qualify for an exemption under Subsection (b).          (l)  To be eligible to receive an exemption under Subsection   (k), the child must:                (1)  be a student who is classified as a resident under   Subchapter B when the child enrolls in an institution of higher   education;                (2)  as a graduate or undergraduate student, maintain a   grade point average that satisfies the grade point average   requirement for making satisfactory academic progress in a degree,   certificate, or continuing education program as determined by the   institution at which the child is enrolled in accordance with the   institution's policy regarding eligibility for financial aid;   [and]                (3)  be 25 years of age or younger on the first day of   the semester or other academic term for which the exemption is   claimed; and                (4)  complete a Free Application for Federal Student   Aid (FAFSA).          (n)  The Texas Higher Education Coordinating Board [Veterans   Commission] by rule shall prescribe procedures by which a child   assigned an exemption under Subsection (k) who suffered from a   severe illness or other debilitating condition that affected the   child's ability to use the exemption before reaching the age   described by Subsection (l)(3) may be granted additional time to   use the exemption corresponding to the time the child was unable to   use the exemption because of the illness or condition.          SECTION 2.  Chapter 61, Education Code, is amended by adding   Subchapter D-1, and a heading is added to that subchapter to read as   follows:   SUBCHAPTER D-1. DUTIES REGARDING CERTAIN TUITION AND FEE EXEMPTIONS   FOR VETERANS AND FAMILY MEMBERS          SECTION 3.  Sections 434.0079 and 434.00791, Government   Code, are transferred to Subchapter D-1, Chapter 61, Education   Code, as added by this Act, redesignated as Sections 61.101 and   61.102, Education Code, and amended to read as follows:          Sec. 61.101 [434.0079].  DUTIES REGARDING CERTAIN TUITION   AND FEE EXEMPTIONS FOR VETERANS AND FAMILY MEMBERS. (a) The board   [commission, through its veteran education program,] shall assist   veterans and their family members in claiming and qualifying for   exemptions from the payment of tuition and fees at institutions of   higher education under Section 54.341[, Education Code].          (b)  The board [commission] shall establish the application   and necessary evidence requirements for a person to claim an   exemption under Section 54.341[, Education Code,] at an institution   of higher education. The requirements established under this   subsection must include a requirement that a person claiming an   exemption under Section 54.341 submit an official certificate of   honorable discharge.          (c)  The board [commission] shall adopt rules governing the   coordination of federal and state benefits of a person eligible to   receive an exemption under Section 54.341(k)[, Education Code],   including rules governing:                (1)  the total number of credit hours assigned under   that section that a person may apply to an individual degree or   certificate program, consistent with the standards of the   appropriate recognized regional accrediting agency; and                (2)  the application of the assigned exemption to   credit hours for which the institution of higher education does not   receive state funding.          Sec. 61.102 [434.00791].  ELECTRONIC SYSTEM TO MONITOR   TUITION EXEMPTIONS FOR VETERANS AND FAMILY MEMBERS. [(a) In this   section, "institution of higher education" has the meaning assigned   by Section 61.003, Education Code.          [(b)]  The board   [commission] shall ensure a system to   electronically monitor the use of tuition and fee exemptions at   institutions of higher education under Section 54.341[, Education   Code,] is developed. The system must allow the board [commission]   to electronically receive, for each semester, the following   information from institutions of higher education:                (1)  the name of the institution;                (2)  the name, identification number, and date of birth   of each individual attending the institution and receiving benefits   for the semester under Section 54.341[, Education Code];                (3)  for each individual receiving benefits, the number   of credit hours for which the individual received an exemption for   the semester;                (4)  for each individual receiving benefits at the   institution during the semester, the total cumulative number of   credit hours for which the individual has received an exemption at   the institution; and                (5)  any other information required by the board   [commission].          SECTION 4.  Section 54.341(o), Education Code, is repealed.          SECTION 5.  The change in law made by this Act applies only   to the imposition of an administrative penalty for a violation that   occurs on or after the effective date of this Act. The imposition   of an administrative penalty for a violation that occurs before the   effective date of this Act is governed by the law in effect on the   date the violation occurred, and that law is continued in effect for   that purpose.          SECTION 6.  (a) In this section, "former governing body"   means the Texas Veterans Commission, relating to the oversight of   Section 54.341, Education Code, and former Sections 434.0079 and   434.00791, Government Code.          (b)  On September 1, 2017:                (1)  all functions and activities relating to Section   54.341, Education Code, performed by the former governing body   immediately before that date are transferred to the Texas Higher   Education Coordinating Board;                (2)  all rules, policies, procedures, decisions, and   forms adopted by the former governing body relating to Section   54.341, Education Code, or former Sections 434.0079 and 434.00791,   Government Code, are continued in effect as rules, policies,   procedures, decisions, and forms of the Texas Higher Education   Coordinating Board and remain in effect until amended or replaced   by that board;                (3)  a complaint, investigation, or other proceeding   before the former governing body that is related to Section 54.341,   Education Code, or former Sections 434.0079 and 434.00791,   Government Code, is transferred without change in status to the   Texas Higher Education Coordinating Board, and the Texas Higher   Education Coordinating Board assumes, as appropriate and without a   change in status, the position of the former governing body in an   action or proceeding to which the former governing body is a party;                (4)  all money, contracts, leases, property, and   obligations of the former governing body relating to Section   54.341, Education Code, or former Sections 434.0079 and 434.00791,   Government Code, are transferred to the Texas Higher Education   Coordinating Board;                (5)  all property in the custody of the former   governing body related to Section 54.341, Education Code, or former   Sections 434.0079 and 434.00791, Government Code, is transferred to   the Texas Higher Education Coordinating Board; and                (6)  the unexpended and unobligated balance of any   money appropriated by the legislature for the former governing body   related to Section 54.341, Education Code, or former Sections   434.0079 and 434.00791, Government Code, is transferred to the   Texas Higher Education Coordinating Board.          (c)  As soon as practicable after the effective date of this   Act, the Texas Veterans Commission may agree with the Texas Higher   Education Coordinating Board to transfer any property of the Texas   Veterans Commission to the Texas Higher Education Coordinating   Board to implement the transfer required by this Act.          (d)  Unless the context indicates otherwise, a reference to   the former governing body in a law or administrative rule that   relates to Section 54.341, Education Code, or former Sections   434.0079 and 434.00791, Government Code, means the Texas Higher   Education Coordinating Board.          (e)  A license, permit, certification, or registration   issued by the former governing body is continued in effect as a   license, permit, certification, or registration of the Texas Higher   Education Coordinating Board.          (f)  On September 1, 2017, all full-time equivalent employee   positions at the former governing body that primarily concern the   administration, enforcement, or other direct or indirect support of   Section 54.341, Education Code, or former Sections 434.0079 and   434.00791, Government Code, become positions at the Texas Higher   Education Coordinating Board. When filling the positions, the   Texas Higher Education Coordinating Board shall give first   consideration to an applicant who, as of August 31, 2017, was an   employee at the former governing body primarily involved in   administering or enforcing Section 54.341, Education Code, or   former Sections 434.0079 and 434.00791, Government Code.          SECTION 7.  In adopting rules under this Act, including   rules implementing authority transferred by this Act from the Texas   Veterans Commission, the Texas Higher Education Coordinating Board   shall engage institutions of higher education in a negotiated   rulemaking process as described by Chapter 2008, Government Code.          SECTION 8.  The changes in law made by this Act apply   beginning with tuition and fees charged for the 2017 fall semester.   Tuition and fees charged for a term or semester before the 2017 fall   semester are 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 9.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.