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.
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