LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 29, 1997 TO: Honorable Bob Bullock IN RE: Senate Bill No. 576, As Passed 2nd House Lieutenant Governor Sibley Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB576 ( Relating to the establishment of the Texas New Horizons Scholarship Trust Fund.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB576-As Passed 2nd House No fiscal implication to the State is anticipated. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend Subchapter D, Chapter 54 of the Education Code to establish the Texas New Horizons Scholarship Fund and would require the Texas Higher Education Coordinating Board to issue Texas New Horizons Scholarships to qualified high school graduates based on certain educational and economic criteria. The bill would require institutions to match any state funds with the institutions local funds. The bill would create a new special fund, the New Horizons Scholarship Trust Fund, outside the treasury but in trust of the Comptroller. Money in the fund could be spent without appropriation but only to fund the scholarship program. Interest and income to the fund would be deposited in the fund. The Coordinating Board would be authorized to accept gifts and grants from any public or private sources. The bill would authorize the Coordinating Board to spend up to 2.5 percent of the deposits into the fund for administrative costs. Each eligible institution would be required to match any state funds with the institution's local funds, to be deposited in the trust fund. The Coordinating Board would be authorized to accept gifts and grants from any public or private sources. The Legislature would be allowed to appropriate money to the trust fund. Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,LP ,LD