LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 18, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  House Bill No. 2652, Committee Report 1st House, Substituted
          Committee on Higher Education                              By: Rangel
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2652 ( Relating 
to creating a certain college program to assist certain persons 
to complete a college degree.) this office has detemined the 
following:
         
         Biennial Net Impact to General Revenue Funds by HB2652-Committee Report 1st House, Substituted
         
No significant fiscal implication to the State is anticipated.
         

         
 
The bill would establish Lone Star College, effective September 
1, 1997.  The college would  provide an alternate route to obtaining 
a degree for students who had acquired a sufficient number of 
college credits but might not have met the residency of other 
institutions.  The college would be authorized to award a limited 
number of different types of degrees.  

The bill would authorize 
the college to operate under the control of the board of regents 
of an existing university or university system designated by 
the Higher Education Coordinating Board.  The bill would prohibit 
the college from offering courses, having a campus, or benefiting 
from the Higher Education Assistance Fund or the Permanent University 
Fund.

The bill would authorize the board to charge fees in 
an amount sufficient to cover the costs of administration of 
the college.  It is assumed that students would pay an initial 
fee for a consultation and to evaluate their transcripts and 
a maintenance fee until they received their degrees.  Income 
from these fees would be sufficient for the college to cover 
administrative costs.

The bill would authorize the Coordinating 
Board to program administrative support for the institution. 
 It is assumed that any administrative support would be provided 
from the fees or as part of ongoing operations.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   781   Higher Education Coordinating Board
                                         
                      LBB Staff:   JK ,LP ,LD