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