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).