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.