HBA-MPM H.B. 2867 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2867
By: Dunnam
Higher Education
3/19/1999
Introduced



BACKGROUND AND PURPOSE 

Some of Texas' brightest high school students are choosing to attend
out-of-state colleges and universities. A significant reason for this
exodus is Texas' inability to extend the kinds of substantive scholarships,
grants, and fellowships offered by institutions of higher education in
other states.  H.B. 2867 authorizes public institutions of higher education
in this state to offer matching nonathletic scholarships to Texas students
who have received offers from out-of-state institutions. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Higher Coordinating Board in
SECTION 1 (Section 61.086, Education Code). 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 61, Education Code, by adding
Section 61.086, as follows: 

Sec. 61.086.  MATCHING SCHOLARSHIPS TO RETAIN STUDENTS IN TEXAS.  (a)
Requires the Texas Higher Education Coordinating Board (board) to adopt
rules allowing an institution of higher education to use any funds
appropriated to the institution or that it may use for the award of
scholarships or grants to match, in whole or part, any nonathletic
scholarship or grant offer, including an offer of the payment of tuition,
fees, room and board, or a stipend, received by a graduate of a Texas
public or private high school from an out-ofstate institution of higher
education. 

(b)  Requires the board to:

_encourage private or independent institutions of higher education to
direct available scholarship funds to match scholarship or grant offers by
out-ofstate institutions as described by Subsection (a); and 
_give preferences in awarding tuition equalization grants under Subchapter
F (Tuition Equalization Grants), Chapter 61 (Texas Higher Education
Coordinating Board), Education Code, to students receiving a scholarship or
grant offer from an out-of-state institution. 

(c)  Prohibits the board from requiring an institution to match a
scholarship or grant offer. 

SECTION 2.  (a) Requires the board to adopt rules relating to matching
scholarships as provided by Section 61.086, Education Code, as added by
this Act, no later than September 1, 1999.  Requires the board to report,
including certain information, on the initial implementation of this Act no
later than December 31, 2000.  Requires the board to deliver the report to
the presiding officer of the standing committee on higher education in each
house of the legislature. 

SECTION 3.Emergency clause.
  Effective date: upon passage.