LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 2, 1995



 TO:     Honorable Irma Rangel, Chair           IN RE:  House Bill No. 3119
         Committee on Higher Education                  By: Hunter, Bob
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
3119 (Relating to the exemption from dues, fees, and charges
provided to a veteran or dependent of a veteran enrolled at a
public institution of higher education) this office has
determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would amend V.T.C.A., Education Code Section 54.203
(Hazlewood Act) to allow a student to receive federal educational
benefits and still qualify for Hazlewood benefits (waived tuition
and fees) if the federal benefit is less than the amount of the
Hazlewood benefit.

It is estimated that the bill would increase the number of
participants in the Hazlewood program each year by five percent. 
For community colleges, it is estimated that 266 additional
students each year would qualify for the program and be exempt
from paying approximately $100,000 in tuition and fees per year. 
For universities, health-related institutions, and technical
colleges, it is estimated that an additional 207 students would
qualify for the program and be exempt from paying approximately
$152,000 in tuition and fees per year.

The estimates below assume continuation of the current policy of
replacing lost tuition revenue with general revenue.  Estimated
cost to general revenue reflects an anticipated decline in    




tuition revenue of $76,000 per year.  Estimates of revenue loss 
to local funds reflect an anticipated decline in fee revenue of
$76,000 per year for general academic, health-related, and
technical institutions and a decline of $100,000 per year in
tuition and fees for public community/junior colleges.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:














     



          Fiscal  Probable Cost Out   Probable Loss to 
          Year       of  General       Institutional   
                  Revenue Fund 001      Local Funds    
                                                       
          1996               $76,000           $176,000
          1997                76,000            176,000
                                                       
          1998                76,000            176,000
                                                       
          1999                76,000            176,000
          2000                76,000            176,000
                                                       
                                                       
                                                       
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.


Source:   Higher Education Coordinating Board
          LBB Staff: JK, MK, WRR