HBA-KMH H.B. 713 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 713
By: Cuellar
Higher Education
1/25/1999
Introduced



BACKGROUND AND PURPOSE 

A national study reviewed by the Texas Higher Education Coordinating Board
showed that college participation and graduation rates decrease as family
income decreases.  In Texas, at least 46 percent of all households, and 62
percent of African American and Hispanic households, have annual incomes of
less than $25,000.  The rising cost of tuition, fees, and other expenses
such as room, board, books, and transportation, has made attending a Texas
institution of higher education prohibitively expensive for many Texas
students and their families. 

H.B. 713 creates the Texas Gateway to the Future Scholarship Program, which
establishes a grant program intended to streamline and simplify the award
process and to focus scholarship money directly toward those Texas students
attending or intending to attend the state's institutions of higher
education that show the greatest amount of financial need. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill
expressly delegates rulemaking authority to the Texas Higher Education
Coordinating Board in SECTION 1 (Section 56.303) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 56, Education Code, by adding Subchapter M, as
follows: 

SUBCHAPTER M.  TEXAS GATEWAY TO THE FUTURE SCHOLARSHIP PROGRAM

Sec.  56.301.  DEFINITIONS.  (1) Defines "coordinating board" as the Texas
Higher Education Coordinating Board. 

(2) Defines "eligible institution" as an institution of higher education,
or a private or independent institution of higher education. 

(3) Defines "private or independent institution of higher education",
"public junior college", and "public technical institute" as assigned under
Section 61.003.  Currently, Section 61.003 defines these terms, as follows:
"Institution of higher education means" any public technical institute,
public junior college, public senior college or university, medical or
dental unit, or other agency of higher education as defined in this
section.  "Public junior college" means any junior college certified by the
board in accordance with Section 61.063 of this chapter. "Public technical
institute" means the Texas State Technical College System. 

Sec.  56.302.  PROGRAM NAME; PURPOSE.  Provides that the student financial
assistance program authorized by this subchapter is known as the Texas
Gateway to the Future Scholarship Program (program), and provides for a
scholarship awarded under the program to be known as a Texas Gateway
scholarship (TG scholarship).  Sets forth that the purpose of this
subchapter is to provide a grant of money to enable eligible students to
attend public and private institutions of higher education in this state. 

Sec.  56.303.  ADMINISTRATION OF PROGRAM.  Requires the coordinating board
to  administer the program, to adopt rules necessary to implement the
program or the subchapter, and to consult with the student financial aid
officers of eligible institutions in developing the rules.  Requires the
coordinating board to adopt rules to provide a TG scholarship to an
eligible student enrolled in an eligible institution of higher education in
the most efficient manner possible.  Prohibits the total amount of TG
scholarships awarded from exceeding the amount available for the program
from appropriations, gifts, grants, or other funds.  Requires the
coordinating board and eligible institutions to give highest priority to
awarding scholarships to students who demonstrate the greatest financial
need. 

Sec.  56.304.  ELIGIBLE PERSON.  Sets forth that for a person to be
eligible for the program, the person must be a resident of this state as
determined by coordinating board rules, a graduate of a public high school
in this state or a private high school in this state accredited by an
organization recognized by the State Board of Education, meet financial
need requirements as defined by the coordinating board, enrolled in an
undergraduate degree or certificate program at an eligible institution,
enroll for at least one-half of a full course load as an entering freshman
in an undergraduate degree or certificate program, and comply with any
other requirement adopted by the coordinating board under this subchapter.
Sets forth  as a further requirement that in order to receive a TG
scholarship for the 2003 fall semester or a subsequent semester or term, a
person must have graduated from a public high school in this state not
earlier than the 1998-1999 school year and have completed the recommended
or advanced high school curriculum established under Section 28.002
(Required Curriculum) or an equivalent curriculum recognized by the State
Board of Education.  Currently, Section 28.002 does not designate a set
required curriculum but rather gives the State Board of Education the
authority to designate a required curriculum. Prohibits eligibility in the
program by a person who has received a baccalaureate degree, or receipt of
a TG scholarship for more than 150 semester credits hours or the
equivalent. 

Sec.  56.305.  ACADEMIC PERFORMANCE REQUIREMENTS.  Authorizes a person to
continue to receive a TG scholarship during each semester or term in which
the person continues to be eligible, but only if the person makes
satisfactory academic progress toward an undergraduate degree or
certificate as determined by the coordinating board.  Authorizes continued
eligibility if a person who received a TG scholarship and received an
undergraduate certificate or associate degree subsequently enrolls within
12 months in a program leading to a higher-level undergraduate degree. 

Sec.  56.306.  SCHOLARSHIP USE.  Authorizes the use of TG scholarship funds
by a person designated to receive them (recipient) for payment of any usual
and customary cost of attendance at an institution of higher education
incurred by recipient.  Requires recipient to designate initially on
recipient's application whether the money will be used for tuition and fees
or should be disbursed directly to recipient and authorizes recipient to
change disbursement instructions in a subsequent semester or term.
Authorizes disbursement of TG scholarship proceeds only upon proof by
recipient of payment or arrangement for payment of all recipient's tuition
and fees.  Authorizes the institution disbursing the TG scholarship
proceeds to retain an amount equal to recipient's tuition and fees until
proof of payment or arrangement for payment is presented if tuition and
fees have not been paid by the due date. Prohibits an eligible institution
from requiring a person to use TG scholarship proceeds to pay tuition and
fees. 

Sec.  56.307.  SCHOLARSHIP AMOUNT.  Sets forth that the TG scholarship for
students attending general academic institutions equals the amount of
tuition and required fees charged to the student.  Sets forth that the TG
scholarship for students enrolled in private or independent institutions of
higher learning equals the average statewide amount of tuition and required
fees that a resident student enrolled full-time in a baccalaureate degree
program would be charged for that semester or term at general academic
institutions, as determined by the coordinating board.  Prohibits the TG
scholarship from being reduced by any gift aid for which a person is
eligible, unless the total sum of gift aid and TG scholarship exceeds the
total cost of attendance at an eligible institution. 

Sec.  56.308.  NOTIFICATION OF PROGRAM TO STUDENTS AND HIGH SCHOOLS.
Requires the coordinating board to distribute to each eligible institution
of higher education and to each school district a copy of the rules adopted
under this subchapter.  Requires each school district to notify its
students of the program and the eligibility requirements of the program and
ensure that each student's official transcript or diploma indicates whether
the student has completed the recommended high school curriculum
established under Section 28.002 (Required Curriculum). 

Sec.  56.309.  FUNDING.  Authorizes the coordinating board to solicit and
accept gifts and grants from any public or private source for the purposes
of this subchapter. 

SECTION 2.  Amends Section 54.5021(c), Education Code, to delineate
Subchapter M, Chapter 56, Education Code, as the guidelines for making
scholarship awards funded by this subsection rather than "to needy and
deserving students." 

SECTION 3.  Amends Section 56.039, Education Code, to make a conforming
change. 

SECTION 4.  Amends Section 151.423, Tax Code, to authorize reimbursement
for scholarships under Subchapter M, Chapter 56, Education Code, rather
than for student financial assistance grants offered under Chapter 56,
Education Code.  Makes conforming changes. 

SECTION 5.  Repealer: Sections 54.215 and 54.216, Education Code.
Currently, Section 54.215 (Texas National Guard/ROTC Students) makes
certain exemptions from tuition and fees for students selected to
participate in the program.  Currently, Section 54.216 (Texas New Horizons
Scholarships), provides for the issuing of scholarships to qualified
students from money available in the Texas New Horizons Scholarship Trust
Fund. 

SECTION 6.  Repealer: Subchapter F, Chapter 56, Education Code. This
section is effective June 1, 1999.  Currently, Subchapter F (Texas
Educational Opportunity Grant Program) provides for grants of money to
eligible students to attend eligible institutions of higher education in
Texas. 

SECTION 7.  Repealer: Subchapter L, Chapter 61, Education Code.  This
section is effective June 1, 1999.  Currently, Subchapter L (Financial Aid
for Professional Nursing Students and Vocational Nursing Students and Loan
Repayment Program for Certain Nurses) provides for the establishment of a
scholarship program, matching fund program, or loan repayment program to
promote the health care and educational needs of the state. 

SECTION 8.  Transfers any money, wherever situated, which was appropriated
or collected for any program abolished under Sections 5, 6, or 7 of this
Act to the Texas Higher Education Coordinating Board for use in the Texas
Gateway to the Future Scholarship Program. 

SECTION 9.  Requires the coordinating board to review and study the laws
relating to student financial aid, grant, and scholarship programs or
tuition and fee waivers or exemptions, to describe possible improvements to
existing programs to maximize the benefits to the state and its students,
and to make recommendations for legislative or administrative action that
may be taken to consolidate, expand, or otherwise modify existing programs
or create new programs.  Requires the coordinating board to report its
activities and findings to the governor, the lieutenant governor, and the
speaker of the house of representatives not later than December 1, 2000. 

SECTION 10.  Authorizes a person receiving an exemption under Section
54.215 (Texas National Guard/ROTC Students) to continue to receive the
exemption until the person is no longer eligible for it, as Section 54.215
existed on January 1, 1999.  Requires the Texas Gateway to the Future
Scholarship Program to cover the costs of the continued exemptions under
Section 54.215. 

SECTION 11.  Requires the coordinating board to award scholarships under
the program beginning with the 1999 fall semester. Requires the
coordinating board to adopt rules for awarding TG scholarships no later
than July 25, 1999. 

SECTION 12.Emergency clause.
  Effective date: upon passage.