BILL ANALYSIS H.B. 2783 By: Place 04-12-95 Committee Report (Unamended) BACKGROUND Current law, (Texas Education Code, Chapter 56, Subchapter I) requires the Texas Department of Transportation to establish a conditional grant program to provide financial assistance to certain high school students who wish to pursue a civil engineering degree. The law further provides that the Department shall transfer money to the conditional grant account in the state's general revenue fund to pay for the program. Although the Department's affirmative action goals include women as well as minorities and encompass many occupations other than engineering, current law allows the Department to provide financial assistance only to minorities who intend to study civil engineering. Furthermore, because the conditional grant account is located in the general revenue fund, any unspent funds will lapse into the general fund at the end of the fiscal year. In the past, conditional grant funds have lapsed because the legislature failed to make a specific appropriation that would allow them to be spent. The fact that the state's fiscal year does not coincide with the academic year increases the likelihood that the funds may not be used for their intended purpose. The Department would like to open up the Conditional Grant Program to all women and to fields other than civil engineering. Opening up the Department's Conditional Grant Program to women as well as minorities and to fields other than civil engineering will allow the Department to meet its affirmative action goals. As an example, the Department is under-represented in its accounting and environmental functions. PURPOSE If enacted, HB 2783 will allow the Texas Department of Transportation's Conditional Grant Program to expand to include white females as well as all other minorities, and to expand the program to include occupations other than civil engineering. It also will require the Department to spend no less than $400,000 annually on the program. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. However, Section 56.144(a) requires TxDOT to prescribe criteria by rule for the selection of applicants for grants. Section 56.144(b) requires TxDOT to issue grants to students chosen according to criteria in Subsection (a). In Section 56.145(a), TxDOT may also establish conditions by rule under which a student receiving a conditional grant may be required to repay all or part of the grant. SECTION BY SECTION ANALYSIS SECTION 1: Section 56.141, Education Code, is amended by amending subsection (1) to update the official title of the agency to Texas Department of Transportation. Subsection 3 is added defining the eligible degree to which to program applies, a baccalaureate degree. Subsection 4 defines eligible profession, opening up the program to other fields other than civil engineering. Subsection 5 defines profession as a state classified position that requires a baccalaureate degree. SECTION 2: Amends Section 56.142, Education Code, to add language to include women and minority students who agree to work in an eligible profession following their receipt of an eligible degree. SECTION 3: Amends Section 56.143, Education Code, indicating that to be eligible for a conditional grant, one must (1)declare intent to become a member of an eligible profession, (2)enroll in an institution and (3)be a Texas resident, (4)be a minority or a woman, and (5)comply with any other requirements adopted under this subchapter. SECTION 4: Amends Sec. 56.144, Education Code, to (a)allow the Department to prescribe criteria for the selection of applicants. This section also specifies that each applicant selected under Subsection (a) can receive their grant when the institution they are enrolled submits an enrollment report and a certification of tuition and fees to TxDOT. Subsections b-d are renamed as a result of adding the new Subsection (a) SECTION 5: Amends Sec. 56.145, Education Code, to allow the Department to establish by rule the conditions under which a student who has received a conditional grant, but (a)fails to complete the prescribed study, must repay all or part of the grant money. Subsection (b)is amended to indicate that a student who fails to enter an eligible profession, and work for TxDOT for two years following receipt of a degree must repay all conditional grants received. SECTION 6: Amends Sec. 56.147, Education Code, to: (a) allow the use of gift and grant monies as well as state highway fund money to fund the grant program and (b) require the Department to issue not less than $400,000 in grants annually. SECTION 7: Repeals Sec. 56.146, the conditional grant account in the general revenue fund, requiring the deposit of $200,000 in monies from the sale of its publications. SECTION 8: Effective date: September 1, 1995. Those who receive a grant prior to the effective date, are eligible to receive the grant under the subchapter as it existed at that time. SECTION 9: Emergency clause. SUMMARY OF COMMITTEE ACTION Pursuant to a public notice posted on March 30, 1995 at 6:02 p.m., the House Committee on Transportation met in a public hearing on Wednesday, April 5, 1995 at 2:00 p.m. or upon adjournment, in room E1.014 of the Capitol Extension and was called to order at 6:30 p.m. by the Chair, Representative Clyde Alexander after the House recessed. The Chair laid out H.B. 2783 and recognized Representative Place to explain H.B. 2783. The Chair recognized the following person who testified as neutral on H.B. 2783. Cathy Williams, Texas Department of Transportation. The Chair left H.B. 2783 pending before the Committee. Pursuant to a public notice posted on April 7, 1995 at 5:04 p.m., the House Committee on Transportation met in a public hearing on Wednesday, April 12, 1995, at 2:00 p.m., or upon adjournment, in Room E1.014 of the Capitol Extension and was called to order at 3:58 p.m. by the Chair, Representative Clyde Alexander. The Chair laid out H.B. 2783 by Place, which was pending before the Committee. Representative Bosse moved that the Committee report H.B. 2783, without amendments, to the full House with the recommendation that it do pass. The motion prevailed by the following vote: Ayes (6), Nayes (0), Absent (3), Present not voting (0).