HBA-KMH H.B. 3583 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3583 By: Jones, Jesse Higher Education 4/23/1999 Introduced BACKGROUND AND PURPOSE Many Texans begin their college career by attending a two-year institution. The average cost of tuition, however, has increased significantly over the past few years. The rising cost of tuition, fees, and other expenses, such as room, board, books, and transportation, has prohibited many students from furthering their education. H.B. 3583 creates the Texas Rising Star Scholarship Program which awards grants to qualified students attending either public or private two year junior colleges or public technical institutions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 56, Education Code, by adding Subchapter M, as follows: SUBCHAPTER M. TEXAS RISING STAR SCHOLARSHIP PROGRAM Sec. 56.301. DEFINITION. Defines "eligible institution" as a public junior college as defined by Section 61.003 (Definitions). Sec. 56.302. PROGRAM NAME; PURPOSE. Names the financial assistance program authorized by this subchapter the Texas Rising Star Scholarship Program (program) and an individual scholarship the rising star scholarship (scholarship). Provides the purpose for this subchapter. Sec. 56.303. ADMINISTRATION OF PROGRAM. Provides that the governing board of each eligible institution administers the program for its students and determines to which of its students a rising star scholarship is awarded. Sec. 56.304. ELIGIBLE PERSON. Provides the conditions of eligibility for this program. Prohibits a person from receiving a scholarship under this subchapter for more than 75 semester credit hours or the equivalent, or if the person has been granted a baccalaureate degree. Sec. 56.305. ACADEMIC PERFORMANCE REQUIREMENTS. Provides that a person continues to be eligible after initially qualifying during each semester or term in which the person is enrolled at an eligible institution only if the person makes satisfactory academic progress toward a degree or certificate as determined by the governing board of the eligible institution. Prohibits a person from receiving the scholarship during the next semester or term in which the person enrolls if the person fails to meet the requirements of continuing eligiblity. Authorizes a person to become eligible to receive a scholarship in a subsequent semester or term if the person completes a semester or term during which the student is not eligible for a scholarship and meets the requirements for continuing eligibility. Sec. 56.306. SCHOLARSHIP USE. Authorizes a recipient of a scholarship under this subchapter to use the money for any usual and customary education-related expense incurred by the student. Prohibits an eligible institution from requiring a person to use the money to pay tuition and fees. Sec. 56.307. SCHOLARSHIP AMOUNT. Provides that the scholarship amount is determined by the governing board of the eligible institution. Authorizes the scholarship amount to be reduced by any gift aid the person receives from another source. Sec. 56.308. FUNDING. (a) Provides that the program in funded by a combination of local funds and state appropriations as provided by this section. (b) Authorizes an eligible institution to solicit and accept gifts, grants, and donations from any public or private source to provide scholarships under this subchapter for its students. Authorizes an eligible institution to use any other available funds of the institution for that purpose. (c) Authorizes the governing board of an eligible institution in the manner prescribed by the Comptroller of Public Accounts (comptroller) to apply for matching state funds, if state funds are appropriated to the program for a state fiscal year. Requires the governing board to state the total amount of funds the institution will use to provide scholarships to its students in that fiscal year from gifts, grants, and donations. Requires the comptroller to transfer from appropriated state funds to each eligible institution an amount equal to one-half of the amount that the institution will use to provide scholarships in that fiscal year from gifts, grants, and donations. Requires the comptroller to transfer to each eligible institution the institution's pro rata share of available funds if appropriated funds for a fiscal year are insufficient to fund the program. (d) Authorizes an eligible institution to use state funds received under this section for a fiscal year only to the extent the institution awards at least twice that amount in scholarships in the same fiscal year from gifts, grants, and donations. Requires the comptroller to establish procedures for the administration of this section, including procedures to ensure that state funds appropriated for the program are used exclusively to provide scholarships in accordance with this subchapter and to recover funds not used in accordance with this subchapter. SECTION 2. (a) Makes this Act applicable with the 2000-2001 state fiscal year. (b) Requires the comptroller to establish procedures for the administration of Section 56.308, Education Code, as added by this Act, not later than January 1, 2000. SECTION 3. Emergency clause. Effective date: upon passage.