SRC-HRD C.S.S.B. 1311 75(R)BILL ANALYSIS Senate Research CenterC.S.S.B. 1311 By: Moncrief Finance 4-21-97 Committee Report (Substituted) DIGEST Currently, there is no source of state funding to assist students who wish to participate in unpaid Washington, D.C. internships. There are concerns that this lack of funding may provide a serious deterrent to those students from low- to middle-income families. This bill would establish the Texas-Washington, D.C. Intern Scholarship Program to finance Washington, D.C. internships for students from low- to middle-income families. PURPOSE As proposed, C.S.S.B. 1311 creates a Texas-Washington, D.C. Intern Scholarship Program, administered by the Texas Higher Education Coordinating Board, to finance Washington, D.C. internships for low- to middle-income students. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Higher Education Coordinating Board under SECTION 1 (Section 56.226, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 56, Education Code, to add a Subchapter L, as follows: SUBCHAPTER L. TEXAS-WASHINGTON, D.C. INTERN SCHOLARSHIP PROGRAM Sec. 56.221. PROGRAM NAME. Provides that the student financial assistance program authorized by this subchapter is known as the Texas-Washington, D.C. Intern Scholarship Program (program) and a grant awarded under this chapter is known as a Texas-Washington, D.C. Intern grant. Sec. 56.222. PURPOSE. Provides that the purpose of this subchapter is to provide a grant of money to enable a qualified person enrolled in an institution of higher education to participate in a Washington, D.C. internship program. Sec. 56.223. DEFINITIONS. Defines "coordinating board" and "grant." Sec. 56.224. ELIGIBLE PERSON. Sets forth eligibility requirements for a Texas-Washington, D.C. Intern grant. Provides that a person is not eligible to receive a Texas-Washington, D.C. Intern grant under certain conditions. Sec. 56.225. ADMINISTRATIVE AUTHORITY. Requires the Texas Higher Education Coordinating Board (coordinating board), for each academic year, to provide not more than 100 grants to be awarded by approved institutions to eligible students. Requires the coordinating board to allocate the grants available to approved institutions in proportion to the total enrollment of each institution in the preceding academic year. Prohibits the total amount of Texas-Washington, D.C. Intern grants distributed by the coordinating board from exceeding the amount appropriated for the program. Sec. 56.226. STANDARDS; AWARD OF GRANT. Requires the coordinating board to prescribe standards for the awarding of grants approved by institutions based on financial need and other appropriate factors. Requires each approved institution to award the grants allocated to the institution according to the standards and applicable procedures prescribed by the coordinating board. Sec. 56.227. PAYMENT OF GRANT; AMOUNT. Sets forth requirements for the coordinating board upon receipt of a student's grant application and certification from the applicable institution that the student has been awarded the grant. Prohibits the amount of a grant from exceeding the lesser of the student's documented financial need or $2,000. Sec. 56.228. ADOPTION AND DISTRIBUTION OF RULES. Requires the coordinating board to adopt rules to administer this subchapter. Requires the coordinating board to distribute to each institution of higher education copies of all rules adopted under this subchapter. Sec. 56.229. FUNDING. Authorizes the coordinating board to accept gifts and grants from many public or private source for purposes of this subchapter. Provides that Texas-Washington, D.C. Intern grants are payable from gifts, grants, and funds appropriated by the legislature. SECTION 2. (a) Effective date: September 1, 1997. (b) Requires the coordinating board to make grants under the program beginning when the coordinating board determines sufficient funds are available to provide a reasonable number of grants, but not earlier than the 1998 fall semester. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE CHANGES SECTION 1. Redesignates proposed Section 56.223, Education Code, as Section 56.224. Sets forth definitions. Amends Section 56.244, Education Code, as redesignated from proposed Section 56.223, to amend certain provisions regarding eligibility. Amends Section 56.225, Education Code, as redesignated from proposed Section 56.224, to prohibit the coordinating board from providing more than 100 grants each year. Sets forth provisions regarding the proportion of allocations. Prohibits the amount of grants distributed from exceeding the amount available in the program from appropriations, gifts and grants, or other funds. Redesignates proposed Section 56.226, Education Code, to set forth new provisions regarding standards and the award of a grant. Amends Section 56.227, Education Code, as redesignated from proposed Section 56.227 to provide that upon receipt of a copy of a student's grant application and certification from the applicable institution that the student has been awarded a grant, the coordinating board shall distribute the amount of the grant to the institution for disbursement to the student. SECTION 2. Requires the coordinating board to make grants when the coordinating board determines sufficient funds are available to provide a reasonable number of grants, but not earlier than the 1998 spring semester. Amendment 1 Page 3, line 22, insert "The amount of a grant may not exceed the lesser of the student's documented financial need or $2,000" after the last sentence of the section.