AN ACT 1-1 relating to the establishment of the Texas New Horizons Scholarship 1-2 Trust Fund to exempt worthy high school graduates from tuition and 1-3 fees at public institutions of higher education. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter D, Chapter 54, Education Code, is 1-6 amended by adding Section 54.216 to read as follows: 1-7 Sec. 54.216. TEXAS NEW HORIZONS SCHOLARSHIPS. (a) The 1-8 Texas Higher Education Coordinating Board shall issue scholarships, 1-9 in a number to be determined by the coordinating board after 1-10 reviewing the total amount of money available to the Texas New 1-11 Horizons Scholarship Trust Fund, to qualified students. A 1-12 scholarship may be used by the recipient to attend an eligible 1-13 public institution of higher education. The purpose of the 1-14 scholarship is to pay for the recipient's tuition and required 1-15 fees. 1-16 (b) The coordinating board shall adopt rules as necessary 1-17 for the administration of this section, including rules relating to 1-18 the establishment of the scholarships, the criteria for awarding a 1-19 scholarship, the determination of eligibility, and the total 1-20 scholarship amount that an eligible student may receive. 1-21 (c) To be eligible for a scholarship under this section, a 1-22 person must: 1-23 (1) be a Texas resident, as defined by coordinating 2-1 board rules; 2-2 (2) be enrolled as an undergraduate student at an 2-3 eligible institution for at least one-half of a full course load; 2-4 (3) meet minimum academic standards; 2-5 (4) establish financial need; 2-6 (5) satisfy one or more of the eligibility 2-7 requirements listed in Subsection (d); and 2-8 (6) comply with any other requirements adopted by the 2-9 coordinating board under this section. 2-10 (d) In addition to the requirements of Subsection (c), 2-11 eligibility for a scholarship shall be based on the following 2-12 factors: 2-13 (1) the socioeconomic background of the student, 2-14 including the percentage by which the student's family is above or 2-15 below any recognized measure of poverty, the student's household 2-16 income, and the educational level of the student's parents; 2-17 (2) whether the student would be the first generation 2-18 of the student's family to attend or graduate from an institution 2-19 of higher education; 2-20 (3) whether the wealth per student of the school 2-21 district the student attended was below the average wealth per 2-22 student of school districts as determined in Chapter 41; 2-23 (4) whether the student has demonstrated 2-24 responsibility in the student's work in school, with the student's 2-25 family, and within the student's community, including whether the 3-1 student has been employed while in high school or whether the 3-2 student has performed substantial child-care duties or has helped 3-3 to raise children; 3-4 (5) whether the student is a resident of an urban area 3-5 or a rural area or a resident of a central city or a suburban area 3-6 in the state; 3-7 (6) the student's performance on standardized tests; 3-8 and 3-9 (7) the student's performance on standardized tests in 3-10 comparison with that of other students from similar socioeconomic 3-11 backgrounds. 3-12 (e) A person is not eligible to receive a scholarship under 3-13 this section if the person: 3-14 (1) has been granted a baccalaureate degree; or 3-15 (2) has received an athletic scholarship. 3-16 (f) To be eligible to participate in the scholarship 3-17 program, an eligible institution must match any state funds with 3-18 the institution's local funds or institutional funds. 3-19 (g) Before the date applications for scholarships are first 3-20 considered under this section, the coordinating board shall 3-21 distribute to each eligible institution the eligibility criteria 3-22 and a description of the weight given to each factor and the role 3-23 each factor plays in the decision to award scholarships. 3-24 (h) The coordinating board shall award the scholarships from 3-25 the amount available in the Texas New Horizons Scholarship Trust 4-1 Fund. The trust fund is established outside the treasury but is 4-2 held in trust by the comptroller. Money in the trust fund may be 4-3 spent without appropriation and only to fund the program. Interest 4-4 and income from the assets of the trust fund shall be credited to 4-5 and deposited in the trust fund. In each state fiscal year the 4-6 coordinating board may spend from the trust fund to cover the costs 4-7 of administering this section an amount not to exceed 2.5 percent 4-8 of the total amount of money deposited into the trust fund in that 4-9 fiscal year, excluding matching funds transferred to the trust fund 4-10 under Subsection (f). 4-11 (i) Each eligible institution shall transfer local funds 4-12 provided by the institution under Subsection (f) to the Texas New 4-13 Horizons Scholarship Trust Fund. The coordinating board shall use 4-14 the funds transferred by an institution to provide scholarships to 4-15 students attending that institution. 4-16 (j) The coordinating board may accept gifts and grants from 4-17 any public or private source for the purposes of this subchapter 4-18 and may deposit a gift or grant to the credit of the trust fund. 4-19 (k) The legislature may appropriate money to the trust fund. 4-20 SECTION 2. (a) Except as provided by Subsection (b) of this 4-21 section, this Act takes effect September 1, 1997. 4-22 (b) The Texas Higher Education Coordinating Board shall 4-23 adopt the rules for awarding scholarships under Section 54.216, 4-24 Education Code, as added by this Act, not later than December 1, 4-25 1997. 5-1 SECTION 3. The importance of this legislation and the 5-2 crowded condition of the calendars in both houses create an 5-3 emergency and an imperative public necessity that the 5-4 constitutional rule requiring bills to be read on three several 5-5 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 576 passed the Senate on April 16, 1997, by a viva-voce vote; and that the Senate concurred in House amendments on May 30, 1997, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 576 passed the House, with amendments, on May 28, 1997, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor