HBA-GUM S.B. 1841 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1841
By: Ratliff
Higher Education
5/11/1999
Engrossed



BACKGROUND AND PURPOSE 

The Texas Legislature established the Texas Eminent Scholars Program in1983
to encourage private endowment donations to higher education institutions
by matching the investment income on the donations with state
appropriations.  The endowment income plus the match is to be used to
supplement the salary of, or to support the research or academic work of,
an eminent scholar holding an endowed academic position at an institution.
Public universities and health science centers are eligible for the
program.  The program received an appropriation of $50,000 in the 1984-1985
biennium and none subsequently.  A recent survey by the Legislative Budget
Board reported donations of $201 million to date with earnings of
$75.7million. The state has not appropriated matching funds for this
program since the 1984-1985 biennium.  S.B. 1841 abolishes the Texas
Eminent Scholars Program.   

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.  Repealer: Subchapter I (Texas Eminent Scholars Program),
Chapter 51, Education Code.  

SECTION 2.  (a)  Provides that the eminent scholars fund in the state
treasury is abolished.  

(b)  Provides that any restrictions under state law on the use of eligible
gifts or the disbursement of income from an eligible gift, including any
requirement of the provision of state matching funds from the eminent
scholars fund, are waived and abolished, and any requirement of any state
action before the eligible gifts may be used or income from the gifts maybe
disbursed are considered fulfilled.  

(c)  Makes application of this Act prospective.

(d)  Requires an institution of higher learning to examine the
institution's records and make a good faith effort to notify each person
who made an eligible gift.  Requires the institution to describe the
abolition of the Eminent Scholars Program and provide the name of a person
at the institution to contact for more information in the notice.
Authorizes the person making an eligible gift to request the gift to be
returned to the person.  

(e)  Provides that if an eligible gift is not requested to be returned, or
if a donor is not able to be notified, the eligible gift vests in the
institution.  

(f)  Authorizes eligible gifts not returned under Subsection (e) of this
section to be used for any purpose that is consistent with the original
intent of the person making an eligible gift to the Texas Eminent Scholars
Program, and that carries out the purpose of the gift as nearly as is
practicable.  Authorizes income from eligible gifts to be used for any
purpose for which the income may have been used under the Texas Eminent
Scholars Program.  

 (g)  Defines "eligible gift." 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.