Amend proposed CSHB 4 in Article 5 as follows:
(1) In the heading to Article 5 (page 84, line 20), after
"REVENUE", add "AND EDUCATIONAL PROGRAMS FUNDED BY LOTTERY
REVENUE".
(2) Strike Section 5.02 (beginning on page 87, line 1) and
substitute the following:
SECTION 5.__. Subchapter B, Chapter 466, Government Code, is
amended by adding Section 466.026 to read as follows:
Sec. 466.026. GAME TO FUND TEXAS HOPE EDUCATION PROGRAM. (a)
The commission shall operate a lottery game to fund the Texas Hope
Education Program. The program consists of the Texas Hope tuition
assistance grant program established by Subchapter G, Chapter 56,
Education Code, the Hope adult literacy grant program established
by Section 7.025, Education Code, and other educational programs as
provided by law. The commission shall operate the game as an
instant-win game and shall provide for tickets to the game to be
available for sale continuously to the extent practicable. The
commission may vary the manner in which the game is played or
conducted as the commission determines appropriate.
(b) The commission shall market and advertise the lottery
game operated under this section in a manner intended to inform the
general public that tickets to the game are available for purchase
and that the net proceeds from the game are used to fund
educational programs in this state. The commission shall consider
any recommendations made by the Texas Higher Education Coordinating
Board and Texas Education Agency relating to the marketing and
advertising of the game.
(c) The commission shall encourage each ticket sales agent
that sells tickets to instant-win or similar types of lottery games
to sell tickets to the lottery game operated under this section.
(d) The commission may not operate, market, or advertise any
other lottery game to fund or support a specific program or
purpose.
SECTION 5.__. Section 466.355, Government Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) Money in the state lottery account may be used only for
the following purposes and shall be distributed as follows:
(1) the payment of prizes to the holders of winning
tickets;
(2) the payment of costs incurred in the operation and
administration of the lottery, including any fees received by a
lottery operator, provided that the costs incurred in a fiscal
biennium may not exceed an amount equal to 15 percent of the gross
revenue accruing from the sale of tickets in that biennium;
(3) the establishment of a pooled bond fund, lottery
prize reserve fund, unclaimed prize fund, and prize payment
account; and
(4) the balance, after creation of a reserve
sufficient to pay the amounts needed or estimated to be needed
under Subdivisions (1) through (3), to be transferred on or before
the 15th day of each month as follows:
(A) the portion of the balance attributable to
the lottery game operated under Section 466.026 determined as
provided by Subsection (c) as follows:
(i) 80 percent to an account in the
general revenue fund to be used only to fund the Texas Hope tuition
assistance grant program established by Subchapter G, Chapter 56,
Education Code; and
(ii) 20 percent to the Hope adult literacy
account established by Section 7.025, Education Code; and
(B) the remainder of the balance to the
unobligated portion of the foundation school <general revenue>
fund<, on or before the 15th day of each month>.
(c) The portion of the balance of the state lottery account
attributable to the lottery game operated under Section 466.026 for
each period for which a distribution is made under Subsection (b)
is an amount equal to the revenue from the sale of tickets to the
lottery game operated under Section 466.026 for the period less an
amount calculated by multiplying the total amount deposited to the
reserve account to pay the amounts needed or estimated to be needed
for the period under Subsections (b)(1)-(3) by a fraction, the
numerator of which is the revenue from the sale of tickets to the
lottery game operated under Section 466.026 for the period and the
denominator of which is the total revenue from the sale of tickets
to all lottery games for the period.
SECTION 5.__. Subchapter G, Chapter 56, Education Code, is
amended to read as follows:
SUBCHAPTER G. TEXAS HOPE TUITION ASSISTANCE GRANT PROGRAM
Sec. 56.101. PROGRAM NAME. The student financial assistance
program authorized by this subchapter is known as the Texas Hope
tuition assistance grant program, and an individual grant awarded
under this subchapter is known as a Texas Hope tuition assistance
grant.
Sec. 56.102. PURPOSE. The purpose of this subchapter is to
provide an eligible person a grant of money for tuition and
required fees to enable that person to attend an institution of
higher education.
Sec. 56.103. ELIGIBLE PERSON. (a) To be eligible for a
Texas Hope tuition assistance grant, a person must:
(1) be a Texas resident as defined by coordinating
board rules;
(2) enroll for a full course load in an institution of
higher education as defined by Section 61.003 or 61.222 <of this
code>;
(3) be from a low-income or middle-income family and
establish financial need as defined by coordinating board rules;
(4) within the two years preceding the person's grant
application, have graduated from a secondary school with a
cumulative grade average that is equal to or greater than the
equivalent of 80 on a scale of 100;
(5) have applied for any available financial
assistance; and
(6) have complied with any other requirements adopted
by the coordinating board under this subchapter.
(b) A person is not eligible to receive a Texas Hope tuition
assistance grant if the person:
(1) has been granted a baccalaureate degree; or
(2) has been convicted of a felony or a crime
involving moral turpitude, unless the person has met the
eligibility requirements under Subsection (a) <of this section>
and has:
(A) received a certificate of discharge by the
Texas Department of Criminal Justice or a correctional facility or
completed a period of probation ordered by a court, and at least
two years have elapsed from the date of the receipt or completion;
or
(B) been pardoned or otherwise released from the
resulting ineligibility to participate in the Texas Hope tuition
assistance grant program.
Sec. 56.104. ADMINISTRATIVE AUTHORITY. The coordinating
board shall provide a Texas Hope tuition assistance grant to an
eligible person enrolled in an institution of higher education
based on the financial need of that person. The total amount of
Texas Hope tuition assistance grants distributed by the
coordinating board may not exceed the amount appropriated for the
Texas Hope tuition assistance grant program.
Sec. 56.105. PAYMENT OF GRANT; AMOUNT. (a) On receipt of a
person's Texas Hope tuition assistance grant application, an
enrollment report from the institution of higher education
enrolling the person, and a certification of the amount of
financial need from the institution of higher education, the
coordinating board shall distribute the amount of the grant for the
person to the institution of higher education.
(b) The amount of a Texas Hope tuition assistance grant may
not exceed the amount of tuition and required fees the student
would be charged at a public senior institution of higher education
and, when added to other gift aid, may not exceed the financial
need of the student.
Sec. 56.106. LIMITATIONS ON GRANT. A person entitled to a
Texas Hope tuition assistance grant loses that person's right to
future payments of money from the grant program if the person:
(1) does not make steady academic progress toward a
baccalaureate degree as determined under coordinating board rules;
(2) does not maintain full-time enrollment standing
for at least two semesters in any academic year;
(3) has a grade average that is in the lower 50
percent of the total grade averages of all full-time students
enrolled in the same college or other department in the institution
of higher education; or
(4) is convicted of a felony or a crime involving
moral turpitude, unless the person has met eligibility requirements
as defined in Section 56.103(a) <of this code> and has:
(A) received a certificate of discharge by the
Texas Department of Criminal Justice or a correctional facility or
has completed a period of probation ordered by a court, and at
least two years have elapsed from the date of the receipt or
completion; or
(B) been pardoned or otherwise released from the
resulting ineligibility to participate in the Texas Hope tuition
assistance grant program.
Sec. 56.107. ADOPTION AND DISTRIBUTION OF RULES. (a) The
coordinating board shall adopt rules to administer this subchapter.
(b) The coordinating board shall distribute to each
institution of higher education and to each school district copies
of all rules adopted under this subchapter.
Sec. 56.108. FUNDING. (a) The coordinating board may accept
gifts and grants from any public or private source for the purposes
of this subchapter.
(b) Texas Hope tuition assistance grants are payable from
gifts, grants, and funds appropriated by the legislature.
SECTION 5.__. Subchapter B, Chapter 7, Education Code, is
amended by adding Section 7.025 to read as follows:
Sec. 7.025. HOPE ADULT LITERACY GRANTS. (a) The Hope adult
literacy account is established as an account in the general
revenue fund.
(b) The Hope adult literacy account consists of:
(1) money transferred to the account under Section
466.355, Government Code;
(2) gifts and grants made to the account;
(3) amounts appropriated to the account by the
legislature;
(4) other money the agency obtains for deposit to the
account; and
(5) interest earned on the money in the account.
(c) The agency may make grants from the interest earned on
the money in the account to adult literacy programs that the agency
determines will most effectively use the grant to further adult
literacy in this state. A grant may be made only to fund a program
operated by a nonprofit community-based organization approved by
the agency or by a consortium or association that includes a
nonprofit community-based organization approved by the agency as a
principal participant. The agency may not distribute the principal
of the account.
(d) The agency shall establish an advisory committee to
assist the agency in administering this section. The agency shall
establish the terms of the appointed members of the advisory
committee. The advisory committee consists of nine members
selected as follows:
(1) one representative of the agency designated by the
commissioner;
(2) one representative of the Texas Workforce
Commission designated by the executive director of the commission;
and
(3) the following members appointed by the
commissioner:
(A) one representative of a statewide coalition
or association of community-based adult literacy programs, to serve
as presiding officer of the committee;
(B) one member representing community-based
adult literacy organizations in rural areas;
(C) one member representing community-based
adult literacy organizations in urban areas;
(D) two members representing different statewide
adult literacy organizations;
(E) one member representing local workforce
development boards; and
(F) one member representing the business
community.
(e) The agency shall adopt rules for the awarding and
distribution of grants under this section.
SECTION 5.__. Section 481.026, Government Code, is repealed.
(3) Strike Section 5.05 (beginning on page 88, line 8) and
substitute the following:
SECTION 5.__. (a) The change in law made to Section
466.355(b), Government Code, by this article applies only to a
transfer from the state lottery account made on or after the
effective date of this article.
(b) The Texas Lottery Commission shall establish and begin
selling tickets to the lottery game required by Section 466.026,
Government Code, as added by this article, not later than January
1, 1998.
(c) The Texas Higher Education Coordinating Board shall make
grants under the Texas Hope tuition assistance grant program
beginning with the 1998 fall semester.
(d) On the effective date of this article, all funds and
accounts established under Section 481.026, Government Code,
including the Texas literacy trust fund, are transferred from the
management of the Texas Department of Commerce to the management of
the Texas Education Agency under Section 7.025, Education Code, as
added by this article.