1-1 By: Hilderbran (Senate Sponsor - Barrientos) H.B. No. 1479 1-2 Coleman 1-3 (In the Senate - Received from the House May 4, 1995; 1-4 May 5, 1995, read first time and referred to Committee on Finance; 1-5 May 16, 1995, reported adversely, with favorable Committee 1-6 Substitute by the following vote: Yeas 13, Nays 0; May 16, 1995, 1-7 sent to printer.) 1-8 COMMITTEE SUBSTITUTE FOR H.B. No. 1479 By: Barrientos 1-9 A BILL TO BE ENTITLED 1-10 AN ACT 1-11 relating to tuition and fee exemptions at public institutions of 1-12 higher education and tuition credits at public and private 1-13 institutions of higher education for certain students. 1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-15 SECTION 1. Subchapter D, Chapter 54, Education Code, is 1-16 amended by adding Sections 54.212 and 54.213 to read as follows: 1-17 Sec. 54.212. ONE-YEAR EXEMPTION FOR CERTAIN AFDC STUDENTS. 1-18 A student is exempt from the payment of tuition and fees authorized 1-19 by this chapter for the first academic year in which the student 1-20 enrolls at an institution of higher education if the student: 1-21 (1) graduated from a public high school in this state; 1-22 (2) successfully completed the attendance requirements 1-23 under Section 21.032; 1-24 (3) during the student's last year of public high 1-25 school in this state, was a dependent child receiving financial 1-26 assistance under Chapter 31, Human Resources Code, for not less 1-27 than six months; 1-28 (4) is younger than 22 years of age on the date of 1-29 enrollment; 1-30 (5) enrolls at the institution as an undergraduate 1-31 student not later than the first anniversary of the date of 1-32 graduation from a public high school in this state; 1-33 (6) has met the entrance examination requirements of 1-34 the institution before the date of enrollment; and 1-35 (7) is classified as a resident under Subchapter B. 1-36 Sec. 54.213. FUNDING OF EXEMPTIONS. (a) An institution of 1-37 higher education may fund tuition exemptions under Section 54.212 1-38 from local funds or from funds appropriated to the institution. An 1-39 institution of higher education is not required to provide tuition 1-40 exemptions beyond those funded through appropriations specifically 1-41 designated for this purpose. 1-42 (b) Savings to the foundation school fund that occur as a 1-43 result of the Early High School Graduation Scholarship program 1-44 created in Subchapter K, Chapter 56, and that are not required for 1-45 the funding of state tuition credits under that program shall be 1-46 used to provide tuition exemptions under Section 54.212. Payment 1-47 of funds under this subsection shall be made in the manner provided 1-48 by Section 56.207 for tuition credits under Subchapter K, Chapter 1-49 56. 1-50 SECTION 2. Chapter 56, Education Code, is amended by adding 1-51 Subchapter K to read as follows: 1-52 SUBCHAPTER K. EARLY HIGH SCHOOL 1-53 GRADUATION SCHOLARSHIP PROGRAM 1-54 Sec. 56.201. PROGRAM NAME. The student financial assistance 1-55 program authorized by this subchapter is known as the Early High 1-56 School Graduation Scholarship program. 1-57 Sec. 56.202. PURPOSE. (a) The Early High School Graduation 1-58 Scholarship program is created to increase efficiency in the 1-59 Foundation School Program and to provide tuition assistance to an 1-60 eligible person to enable that person to attend a Texas public or 1-61 private institution of higher education. 1-62 (b) A portion of the savings to the Foundation School 1-63 Program that occur as a result of the program is dedicated to state 1-64 tuition credits provided by the program. 1-65 Sec. 56.203. ELIGIBLE PERSON. To be eligible for the Early 1-66 High School Graduation Scholarship program, a person must: 1-67 (1) have the written approval of at least one of the 1-68 person's parents or a person standing in parental relation to the 2-1 person; 2-2 (2) have successfully completed the requirements for a 2-3 public high school diploma in not more than 36 consecutive months 2-4 and graduated or be eligible for graduation from a Texas public 2-5 high school; 2-6 (3) have attended high school in this state only; and 2-7 (4) be a Texas resident as defined by Texas Higher 2-8 Education Coordinating Board rule. 2-9 Sec. 56.204. ENTITLEMENT; MATCHING CREDIT. (a) An eligible 2-10 person under the Early High School Graduation Scholarship program 2-11 is entitled to $1,000 in state tuition credits at a Texas public or 2-12 private institution of higher education. 2-13 (b) The use of a credit at a Texas private institution is 2-14 contingent on a private institution's agreement to match the state 2-15 tuition credit. 2-16 (c) A person eligible for a tuition credit under the tuition 2-17 credit program authorized by Rider 23, page III-9, Chapter 19, Acts 2-18 of the 72nd Legislature, 1st Called Session, 1991 (General 2-19 Appropriations Act), who did not receive a credit under that 2-20 program is eligible for and entitled to $1,000 in state tuition 2-21 credits under this subchapter. This subsection expires September 2-22 1, 2005. 2-23 Sec. 56.205. ISSUANCE OF CERTIFICATE. The coordinating 2-24 board shall provide a certificate for state tuition credits to an 2-25 eligible person. 2-26 Sec. 56.206. USE OF TUITION CREDIT. (a) On enrollment of 2-27 an eligible person in an eligible institution of higher education, 2-28 the institution shall apply to the person's tuition charges for the 2-29 enrollment period an amount equal to the lesser of: 2-30 (1) the amount of the tuition credit available to the 2-31 person; or 2-32 (2) the person's actual tuition. 2-33 (b) A private institution of higher education shall apply 2-34 the state tuition credit and the matching credit required by 2-35 Section 56.204(b) in equal amounts. 2-36 (c) For each student using a state tuition credit under this 2-37 subchapter, the institution of higher education shall report to the 2-38 coordinating board: 2-39 (1) the student's name; 2-40 (2) the school district from which the student 2-41 graduated from high school; and 2-42 (3) the amount of the state tuition credit applied. 2-43 Sec. 56.207. PAYMENT OF TUITION CREDIT. (a) On receipt of 2-44 a report from an eligible institution of higher education under 2-45 Section 56.206(c), the coordinating board shall distribute to the 2-46 institution the amount of the state tuition credit applied by the 2-47 institution. 2-48 (b) At least once each year the coordinating board shall 2-49 submit a report to the commissioner of education that includes: 2-50 (1) the name of each student who used state tuition 2-51 credit under this subchapter during the period covered by the 2-52 report; 2-53 (2) the school district from which each student 2-54 graduated from high school; and 2-55 (3) the amount of the state tuition credit used by 2-56 each student during the period covered by the report. 2-57 (c) On receipt of a report from the coordinating board under 2-58 Subsection (b), the commissioner shall transfer to the coordinating 2-59 board, from funds appropriated for the Foundation School Program, 2-60 an amount sufficient to reimburse the coordinating board for 2-61 amounts disbursed in payment of state tuition credits during the 2-62 period covered by the report. 2-63 Sec. 56.208. FUNDING. (a) The Early High School Graduation 2-64 Scholarship program is financed under the Foundation School 2-65 Program. Funding for the state tuition credits is not subject to 2-66 the provisions of Sections 16.254(e)-(k). 2-67 (b) The commissioner of education shall reduce the total 2-68 annual amount of foundation school fund payments made to a school 2-69 district by an amount equal to F x A, where: 2-70 (1) "F" is the lesser of one or the quotient of the 3-1 district's local share for the preceding school year under Section 3-2 16.252 divided by the amount of money to which the district was 3-3 entitled under Subchapters C and D, Chapter 16, for the preceding 3-4 school year; and 3-5 (2) "A" is the amount of state tuition credits under 3-6 this subchapter applied by institutions of higher education on 3-7 behalf of eligible persons who graduated from the district that has 3-8 not been used to compute a previous reduction under this 3-9 subsection. 3-10 (c) A school district that does not receive foundation 3-11 school fund payments during a year in which the commissioner would 3-12 otherwise withhold money from the district under Subsection (b) 3-13 shall remit an amount equal to the amount that would be withheld 3-14 under Subsection (b) to the comptroller for deposit to the credit 3-15 of the foundation school fund. 3-16 (d) The commissioner and the foundation school fund budget 3-17 committee shall consider the costs of the program in estimating the 3-18 funds needed for Foundation School Program purposes. 3-19 Sec. 56.209. ADOPTION AND DISTRIBUTION OF RULES. (a) The 3-20 coordinating board shall adopt rules to administer this subchapter. 3-21 (b) The coordinating board shall distribute copies of all 3-22 rules adopted under this subchapter to each eligible institution of 3-23 higher education and to each school district. 3-24 SECTION 3. This Act applies beginning with tuition and fees 3-25 collected for the fall semester of 1995. 3-26 SECTION 4. The importance of this legislation and the 3-27 crowded condition of the calendars in both houses create an 3-28 emergency and an imperative public necessity that the 3-29 constitutional rule requiring bills to be read on three several 3-30 days in each house be suspended, and this rule is hereby suspended, 3-31 and that this Act take effect and be in force from and after its 3-32 passage, and it is so enacted. 3-33 * * * * *