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


Office of House Bill AnalysisC.S.H.B. 2867
By: Dunnam
Higher Education
4/5/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Some of Texas' brightest high school students are choosing to attend
out-of-state colleges and universities. A reason for this exodus may be
Texas' inability to compete with the kinds of substantive scholarships,
grants, and fellowships offered by institutions of higher education in
other states. C.S.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 a public or private or independent 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-of-state institution of
higher education. 

(b)  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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2867 modifies SECTION 1 of the original bill in proposed Section
61.086(a) to authorize the Texas Higher Education Coordinating Board
(board) to adopt rules allowing a "public or private or independent"
institution of higher education (rather than an "institution of higher
education") to use funds appropriated to it for the award of scholarships
and grants described in this section. Deletes proposed text from proposed
Section 61.086(b) in the original bill authorizing the board to encourage
private or independent institutions of higher education to direct available
scholarship funds to match scholarship or grant offers by out-of-state
institutions described under this section and to give preference in
awarding tuition equalization grants under Subchapter F (Tuition
Equalization Grants) to students receiving a scholarship or grant offer
from an out-of-state institution. Proposed  Subsection (a) in the original
bill is redesignated to Subsection (b) in the substitute.