LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 26, 1997
         
         
      TO: Honorable James E. "Pete" Laney            IN RE:  House Bill No. 2214, As Passed 2nd House
          Speaker of the House                Delisi
          House of Representatives
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2214 ( relating 
to fees for correspondence courses for certain veterans and 
the children of certain veterans) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2214-As Passed 2nd House
         
No fiscal implication to the State is anticipated.
         

         
 
The bill would exempt certain Texas veterans and their dependents 
as defined by the Education Code Section 54.203 (a) and (b) 
from tuition and fees associated with correspondence courses 
if the correspondence course applies toward the student's degree 
plan. The bill would allow an institution to grant an exemption 
provided by Section 54.203 for continuing education courses.

Because 
continuing education courses receive no formula funding and 
are not supported by general revenue, the bill would have no 
impact on general revenue or the State.   

However, continuing 
education courses are required to be self-supporting. The bill 
would reduce funds available to institutions to support continuing 
education courses by exempting certain veterans and their dependents 
from certain tuition and fee charges.  This could increase the 
costs for other students enrolled in continuing education courses.
          
Community college districts would probably experience some loss 
in tuition and fee income.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,RR ,LD