H.B. No. 1479 1-1 AN ACT 1-2 relating to tuition and fee exemptions at public institutions of 1-3 higher education and tuition credits at public and private 1-4 institutions of higher education for certain students. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter D, Chapter 54, Education Code, is 1-7 amended by adding Sections 54.212 and 54.213 to read as follows: 1-8 Sec. 54.212. ONE-YEAR EXEMPTION FOR CERTAIN AFDC STUDENTS. 1-9 A student is exempt from the payment of tuition and fees authorized 1-10 by this chapter for the first academic year in which the student 1-11 enrolls at an institution of higher education if the student: 1-12 (1) graduated from a public high school in this state; 1-13 (2) successfully completed the attendance requirements 1-14 under Section 21.032; 1-15 (3) during the student's last year of public high 1-16 school in this state, was a dependent child receiving financial 1-17 assistance under Chapter 31, Human Resources Code, for not less 1-18 than six months; 1-19 (4) is younger than 22 years of age on the date of 1-20 enrollment; 1-21 (5) enrolls at the institution as an undergraduate 1-22 student not later than the first anniversary of the date of 1-23 graduation from a public high school in this state; 1-24 (6) has met the entrance examination requirements of 2-1 the institution before the date of enrollment; and 2-2 (7) is classified as a resident under Subchapter B. 2-3 Sec. 54.213. FUNDING OF EXEMPTIONS. (a) An institution of 2-4 higher education may fund tuition exemptions under Section 54.212 2-5 from local funds or from funds appropriated to the institution. An 2-6 institution of higher education is not required to provide tuition 2-7 exemptions beyond those funded through appropriations specifically 2-8 designated for this purpose. 2-9 (b) Savings to the foundation school fund that occur as a 2-10 result of the Early High School Graduation Scholarship program 2-11 created in Subchapter K, Chapter 56, and that are not required for 2-12 the funding of state tuition credits under that program shall be 2-13 used to provide tuition exemptions under Section 54.212. Payment 2-14 of funds under this subsection shall be made in the manner provided 2-15 by Section 56.207 for tuition credits under Subchapter K, Chapter 2-16 56. 2-17 SECTION 2. Chapter 56, Education Code, is amended by adding 2-18 Subchapter K to read as follows: 2-19 SUBCHAPTER K. EARLY HIGH SCHOOL 2-20 GRADUATION SCHOLARSHIP PROGRAM 2-21 Sec. 56.201. PROGRAM NAME. The student financial assistance 2-22 program authorized by this subchapter is known as the Early High 2-23 School Graduation Scholarship program. 2-24 Sec. 56.202. PURPOSE. (a) The Early High School Graduation 2-25 Scholarship program is created to increase efficiency in the 2-26 Foundation School Program and to provide tuition assistance to an 2-27 eligible person to enable that person to attend a Texas public or 3-1 private institution of higher education. 3-2 (b) A portion of the savings to the Foundation School 3-3 Program that occur as a result of the program is dedicated to state 3-4 tuition credits provided by the program. 3-5 Sec. 56.203. ELIGIBLE PERSON. To be eligible for the Early 3-6 High School Graduation Scholarship program, a person must: 3-7 (1) have the written approval of at least one of the 3-8 person's parents or a person standing in parental relation to the 3-9 person; 3-10 (2) have successfully completed the requirements for a 3-11 public high school diploma in not more than 36 consecutive months 3-12 and graduated or be eligible for graduation from a Texas public 3-13 high school; 3-14 (3) have attended high school in this state only; and 3-15 (4) be a Texas resident as defined by Texas Higher 3-16 Education Coordinating Board rule. 3-17 Sec. 56.204. ENTITLEMENT; MATCHING CREDIT. (a) An eligible 3-18 person under the Early High School Graduation Scholarship program 3-19 is entitled to $1,000 in state tuition credits at a Texas public or 3-20 private institution of higher education. 3-21 (b) The use of a credit at a Texas private institution is 3-22 contingent on a private institution's agreement to match the state 3-23 tuition credit. 3-24 (c) A person eligible for a tuition credit under the tuition 3-25 credit program authorized by Rider 23, page III-9, Chapter 19, Acts 3-26 of the 72nd Legislature, 1st Called Session, 1991 (General 3-27 Appropriations Act), who did not receive a credit under that 4-1 program is eligible for and entitled to $1,000 in state tuition 4-2 credits under this subchapter. This subsection expires September 4-3 1, 2005. 4-4 Sec. 56.205. ISSUANCE OF CERTIFICATE. The coordinating 4-5 board shall provide a certificate for state tuition credits to an 4-6 eligible person. 4-7 Sec. 56.206. USE OF TUITION CREDIT. (a) On enrollment of 4-8 an eligible person in an eligible institution of higher education, 4-9 the institution shall apply to the person's tuition charges for the 4-10 enrollment period an amount equal to the lesser of: 4-11 (1) the amount of the tuition credit available to the 4-12 person; or 4-13 (2) the person's actual tuition. 4-14 (b) A private institution of higher education shall apply 4-15 the state tuition credit and the matching credit required by 4-16 Section 56.204(b) in equal amounts. 4-17 (c) For each student using a state tuition credit under this 4-18 subchapter, the institution of higher education shall report to the 4-19 coordinating board: 4-20 (1) the student's name; 4-21 (2) the school district from which the student 4-22 graduated from high school; and 4-23 (3) the amount of the state tuition credit applied. 4-24 Sec. 56.207. PAYMENT OF TUITION CREDIT. (a) On receipt of 4-25 a report from an eligible institution of higher education under 4-26 Section 56.206(c), the coordinating board shall distribute to the 4-27 institution the amount of the state tuition credit applied by the 5-1 institution. 5-2 (b) At least once each year the coordinating board shall 5-3 submit a report to the commissioner of education that includes: 5-4 (1) the name of each student who used state tuition 5-5 credit under this subchapter during the period covered by the 5-6 report; 5-7 (2) the school district from which each student 5-8 graduated from high school; and 5-9 (3) the amount of the state tuition credit used by 5-10 each student during the period covered by the report. 5-11 (c) On receipt of a report from the coordinating board under 5-12 Subsection (b), the commissioner shall transfer to the coordinating 5-13 board, from funds appropriated for the Foundation School Program, 5-14 an amount sufficient to reimburse the coordinating board for 5-15 amounts disbursed in payment of state tuition credits during the 5-16 period covered by the report. 5-17 Sec. 56.208. FUNDING. (a) The Early High School Graduation 5-18 Scholarship program is financed under the Foundation School 5-19 Program. Funding for the state tuition credits is not subject to 5-20 the provisions of Sections 16.254(e)-(k). 5-21 (b) The commissioner of education shall reduce the total 5-22 annual amount of foundation school fund payments made to a school 5-23 district by an amount equal to F x A, where: 5-24 (1) "F" is the lesser of one or the quotient of the 5-25 district's local share for the preceding school year under Section 5-26 16.252 divided by the amount of money to which the district was 5-27 entitled under Subchapters C and D, Chapter 16, for the preceding 6-1 school year; and 6-2 (2) "A" is the amount of state tuition credits under 6-3 this subchapter applied by institutions of higher education on 6-4 behalf of eligible persons who graduated from the district that has 6-5 not been used to compute a previous reduction under this 6-6 subsection. 6-7 (c) A school district that does not receive foundation 6-8 school fund payments during a year in which the commissioner would 6-9 otherwise withhold money from the district under Subsection (b) 6-10 shall remit an amount equal to the amount that would be withheld 6-11 under Subsection (b) to the comptroller for deposit to the credit 6-12 of the foundation school fund. 6-13 (d) The commissioner and the foundation school fund budget 6-14 committee shall consider the costs of the program in estimating the 6-15 funds needed for Foundation School Program purposes. 6-16 Sec. 56.209. ADOPTION AND DISTRIBUTION OF RULES. (a) The 6-17 coordinating board shall adopt rules to administer this subchapter. 6-18 (b) The coordinating board shall distribute copies of all 6-19 rules adopted under this subchapter to each eligible institution of 6-20 higher education and to each school district. 6-21 SECTION 3. This Act applies beginning with tuition and fees 6-22 collected for the fall semester of 1995. 6-23 SECTION 4. The importance of this legislation and the 6-24 crowded condition of the calendars in both houses create an 6-25 emergency and an imperative public necessity that the 6-26 constitutional rule requiring bills to be read on three several 6-27 days in each house be suspended, and this rule is hereby suspended, 7-1 and that this Act take effect and be in force from and after its 7-2 passage, and it is so enacted.