LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 2, 1995



 TO:     Honorable Bob Bullock                  Honorable Pete Laney
         Lieutenant Governor                    Speaker of the House
         Senate Chamber                         House of Representatives
         Austin, Texas                          Austin, Texas




 IN RE:                                Conference Committee Report
                                       for Senate Bill No. 114

FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
114 (Relating to exempting certain veterans of the armed forces,
the surviving children of certain members of the armed forces,
and other persons with military-related service from tuition,
fees, and charges at public institutions of higher education)
this office has determined the following:

The bill would restrict tuition and fee exemptions to veterans
who served at least a portion of their active duty during the
Cold War era, Vietnam era, the Grenada and Lebanon era, the
Panama era, the Persian Gulf War or any future national emergency
declared in accordance with federal law.  The bill would limit
the number of semester credit hours of tuition waived for a
qualified veteran to 150 hours.  In addition, the bill would
eliminate financial need as a tuition and fee exemption
eligibility criterion for veterans or their dependents.

Current law provides eligibility to veterans who served during
the Cold War era, which has been interpreted through an Attorney
General's opinion to have begun on February 1, 1955.  The
termination of the Cold War era has not been officially declared
by the Legislature, so all veterans who have met the active duty
requirement from February 1, 1955 to present have been
potentially eligible for the program.  Inclusion of specific
conflicts, e.g., Vietnam era, which occurred during the Cold War
era would not affect veteran eligibility.  The limit of 150
semester credit hours would cause some veterans to lose their
eligibility, however, the impact of the 150 semester credit hour
limit is estimated to be a decline of less than one percent in    




veterans eligible for exemptions.

 Finally, the bill would eliminate financial need as a criterion
for eligibility for waivers.  This criterion was added by the
Seventy-third Legislature, but enforcement of this provision has
been held in abeyance. 

Since the need criterion has not been implemented, this aspect of
the bill is anticipated to have no fiscal impact.  If the need
criterion were implemented, an estimated 4,000 to 5,000 veterans
would lose their eligibility for an estimated savings to the
State of $1.5 to $2.1 million per year.

Since the 150 semester credit hour limit is estimated to affect
fewer than one percent of eligible veterans, this aspect of the
bill is anticipated to have no significant fiscal impact.


No significant fiscal implication to the State or units of local
government is anticipated.


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