75R9954 CAG-D                           

         By Maxey                                              H.B. No. 2055

         Substitute the following for H.B. No. 2055:

         By Rangel                                         C.S.H.B. No. 2055

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to prepaid higher education tuition scholarships for needy

 1-3     students.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Sections 54.633(a)-(e), Education Code, are

 1-6     amended to read as follows:

 1-7           (a)  To the extent money is available, the board or the board

 1-8     of a direct-support organization established by the board under

 1-9     Subsection (e) may award a prepaid higher education tuition

1-10     scholarship to a student who meets:

1-11                 (1)  economic or [and] academic requirements:

1-12                       (A)  adopted by the board by rule; or

1-13                       (B)  established by the board of a direct-support

1-14     organization and consistent with board rules; and

1-15                 (2)  if the scholarship is designated for a specific

1-16     use or purpose or use under Subsection (c), the guidelines

1-17     established for the award of the scholarship.

1-18           (b)  A scholarship awarded under this section terminates if

1-19     the student to whom the scholarship is awarded is:

1-20                 (1)  convicted of, or adjudicated as having engaged in

1-21     delinquent conduct constituting, an offense under Chapter 481,

1-22     Health and Safety Code; [or]

1-23                 (2)  convicted of, or adjudicated as having engaged in

1-24     delinquent conduct constituting, a felony or Class A misdemeanor;

 2-1     or

 2-2                 (3)  determined by the board to have violated a

 2-3     condition placed on the scholarship.

 2-4           (c)  The board shall:

 2-5                 (1)  establish guidelines for receiving money from the

 2-6     private sector, including guidelines for accepting contributions

 2-7     subject to an agreement with the contributor that the funds be used

 2-8     for a scholarship awarded for a specific use or purpose or subject

 2-9     to conditions placed on the award of the scholarship, including the

2-10     satisfaction of academic, economic, or other requirements;

2-11                 (2)  establish guidelines for awarding scholarships,

2-12     including awarding scholarships for a specific use or purpose; and

2-13                 (3)  ensure that each region of the state is equitably

2-14     represented in the awarding of scholarships under this section

2-15     other than scholarships awarded for a specific use or purpose or

2-16     subject to special conditions.

2-17           (d)  Scholarships under this section may be [are] funded by:

2-18                 (1)  the private sector;

2-19                 (2)  public funds, if public  funds are appropriated

2-20     for that purpose, including funds that may be used for matching

2-21     grants; or

2-22                 (3)  any combination of public and private funds.

2-23           (e)  The board may establish a direct-support organization

2-24     under the Texas Non-Profit Corporation Act (Article 1396-1.01 et

2-25     seq., Vernon's Texas Civil Statutes) to:

2-26                 (1)  receive, hold, invest, and administer money,

2-27     gifts, grants, loans, or other property for or on behalf of the

 3-1     program; [and]

 3-2                 (2)  purchase and award scholarships under this

 3-3     section; and

 3-4                 (3)  establish economic and academic eligibility

 3-5     requirements consistent with board rules.

 3-6           SECTION 2.  (a)  This Act takes effect September 1, 1997.

 3-7           (b)  The Prepaid Higher Education Tuition Board shall adopt

 3-8     guidelines  for receiving money from the private sector and for

 3-9     awarding scholarships for a specific use or purpose not later than

3-10     January 1, 1998.

3-11           SECTION 3.  The importance of this legislation and the

3-12     crowded condition of the calendars in both houses create an

3-13     emergency and an imperative public necessity that the

3-14     constitutional rule requiring bills to be read on three several

3-15     days in each house be suspended, and this rule is hereby suspended.