MMA C.S.H.B. 3356 75(R)BILL ANALYSIS


HIGHER EDUCATION
C.S.H.B. 3356
By: Rangel
4-11-97
Committee Report (Substituted)



BACKGROUND 

During the 74th Legislative Session, H.B. 1479 created the Early High
School Graduation Scholarship Program.  The program provides $1,000
scholarships to students who graduate from high school in three years or
less.  It also provides one year college tuition and fee exemptions for
high school seniors on AFDC.  The scholarships are funded through savings
to the Foundation School Program that the state incurs as a result of
students graduating early. 

Under current statute, the Texas Higher Education Coordinating Board
(THECB) is directed to reimburse institutions for the scholarships they
have granted. The commissioner of education then must transfer to THECB,
from funds appropriated for the Foundation School Program, an amount
sufficient to reimburse THECB for disbursed payments.  This statute
requires THECB to expend funds prior to receiving reimbursement from the
commissioner of education.  However, THECB was not appropriated funds for
that purpose, and they cannot expend funds for which they have not
received an appropriation.   

During the interim, THECB and the commissioner of education negotiated a
solution that permitted THECB to receive payment from the education agency
before reimbursing the institutions.  The Comptroller reluctantly agreed
to this compromise although it conflicts with the statute.  However,
without it, the program would not have been implemented. 

PURPOSE

C.S.H.B. 3356 would mandate that the commissioner of education transfer to
THECB, from funds appropriated for the Foundation School Program, an
amount sufficient to pay each eligible institution of higher education the
amount of state tuition credit applied by the institution. Also, requires
THECB to distribute the appropriate amount of funds to each eligible
institution upon receipt of the funds. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 56.207, Education Code to read as follows:
(a) Deletes language requiring THECB to distribute funds to an institution
upon receipt of a report from an eligible institution. Requires THECB to
submit a report at least once a year to the commissioner of education to
include the following information: 
 (1) name of student who used state tuition credit;
 (2) name of school district from which each student graduated from high
school; 
 (3) the amount of state tuition credit used by each student.
(b) Requires the commissioner of education, upon receipt of the report, to
transfer to THECB, funds appropriated for the Foundation School Program,
an amount sufficient to pay each eligible institution the amount of state
tuition credit applied by the institution during the period covered by the
report. 
(c) Mandates the THECB to distribute the funds, upon their receipt, to
each eligible institution. 

 SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3356 makes non-substantive language changes as recommended by
Legislative Council.