By Ellis, et al.                                 S.B. No. 849

      75R2761 CAG-D                           

                                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)-(d), Education Code, are

 1-6     amended to read as follows:

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

 1-8     prepaid higher education tuition scholarship to a student who meets

 1-9     economic and academic requirements adopted by the board by rule

1-10     and, if the scholarship is designated for a specific use or purpose

1-11     or use under Subsection (c), who meets the guidelines established

1-12     for the award of the scholarship.

1-13           (b)  A scholarship awarded under this section terminates if

1-14     the student to whom the scholarship is awarded is:

1-15                 (1)  convicted of, or adjudicated as having engaged in

1-16     delinquent conduct constituting, an offense under Chapter 481,

1-17     Health and Safety Code; [or]

1-18                 (2)  convicted of, or adjudicated as having engaged in

1-19     delinquent conduct constituting, a felony or Class A misdemeanor;

1-20     or

1-21                 (3)  determined by the board to have violated a

1-22     condition placed on the scholarship.

1-23           (c)  The board shall:

1-24                 (1)  establish guidelines for receiving money from the

 2-1     private sector, including guidelines for accepting contributions

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

 2-3     for a scholarship awarded for a specific use or purpose or subject

 2-4     to conditions placed on the award of the scholarship, including the

 2-5     satisfaction of academic, economic, or other requirements;

 2-6                 (2)  establish guidelines for awarding scholarships,

 2-7     including awarding scholarships for a specific use or purpose; and

 2-8                 (3)  ensure that each region of the state is equitably

 2-9     represented in the awarding of scholarships under this section

2-10     other than scholarships awarded for a specific use or purpose or

2-11     subject to special conditions.

2-12           (d)  Scholarships under this section may be [are] funded by:

2-13                 (1)  the private sector;

2-14                 (2)  public funds, if public  funds are appropriated

2-15     for that purpose, including funds that may be used for matching

2-16     grants; or

2-17                 (3)  any combination of public and private funds.

2-18           SECTION 2.  (a)  This Act takes effect September 1, 1997.

2-19           (b)  The Prepaid Higher Education Tuition Board shall adopt

2-20     guidelines  for receiving money from the private sector and for

2-21     awarding scholarships for a specific use or purpose not later than

2-22     January 1, 1998.

2-23           SECTION 3.  The importance of this legislation and the

2-24     crowded condition of the calendars in both houses create an

2-25     emergency and an imperative public necessity that the

2-26     constitutional rule requiring bills to be read on three several

2-27     days in each house be suspended, and this rule is hereby suspended.