SRC-JJJ, PNG S.B. 37 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 37
76R1978 JSA-D By: Ellis 
Higher Education
2/25/1999
As Filed


DIGEST 

Currently, Texas ranks 48th in the nation in the percentage of high school
students earning college degrees.  The average cost of tuition has
increased significantly over the past few years, making it more difficult
for students to finance their higher education.  This bill would create the
Texas HOPE Tuition Scholarship Program, to award scholarships to students
who meet certain requirements, and agree, as part of their eligibility, to
complete certain volunteer or charity work. 

PURPOSE

As proposed, S.B. 37 provides scholarships to students at higher education
institutions who meet certain academic, citizenship, financial need, and
other requirements in order to promote public service and provide qualified
teachers in communities or teaching fields with a critical shortage of
teachers. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Higher Education Coordinating
Board in SECTION 1 (Section 56.310(a), Education Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 56, Education Code, by adding Subchapter M, as
follows: 

SUBCHAPTER M.TEXAS HOPE TUITION SCHOLARSHIP PROGRAM

 Sec.  56.301. DEFINITION.  Defines "coordinating board."

Sec.  56.302. PROGRAM NAME; PURPOSE.  Establishes that the financial
assistance program created in this subchapter is named the Texas Hope
Tuition Scholarship Program, and an individual  grant is called a Texas
hope tuition grant.  Establishes that the purpose of this assistance
program is to provide a tuition grant to certain people who provide public
service or agree to teach in a primary or secondary  state school in a
community or teaching field with a critical shortage of teachers. 

Sec.  56.303. TYPES OF GRANTS.  Establishes that there are two types of
grants: the hope tuition grant for public service, and the Teach for Texas
hope tuition grant. 

Sec.  56.304. ELIGIBLE PERSON. Establishes certain requirements for a
person to be eligible for the grants. 

Sec.  56.305. REQUIREMENTS FOR HOPE TUITION GRANT FOR PUBLIC SERVICE.
Establishes specific requirements for a person to receive a hope tuition
grant for public service.  

Sec.  56.306. REQUIREMENTS FOR TEACH FOR TEXAS HOPE TUITION GRANT.
Establishes specific requirements for a person to receive a Teach for Texas
hope tuition grant.  

 Sec.  56.307. ADMINISTRATIVE AUTHORITY.  Requires the Texas Higher
Education Coordinating Board  (THECB) to provide Texas hope tuition grants
as determined by the amount of funding available and the financial need of
the applicants. 

Sec.  56.308. PAYMENT OF GRANT; AMOUNT.  Establishes the information
necessary to determine the eligibility of a person in order for the grant
to be paid, and the distribution system for payment of the grant.  Sets
limits on the tuition grants.  

Sec.  56.309. GRANT CONDITIONAL; REPAYMENT.  Establishes that the grant is
conditioned on the person's maintenance of all qualifications and is
considered a loan until all conditions are met.  Requires THECB to require
a grantee to sign a promissory note acknowledging the conditional nature of
the grant and promising repayment of all of the grant if all of the
conditions are not met.  Requires THECB to determine the terms of the
promissory note, with the terms the same as those applicable to state or
federally guaranteed student loans at the same time, to the extent
practicable.  Requires all amounts collected in repayment of grants,
excluding collection costs, to be deposited in the Texas hope tuition
scholarship trust fund.  Requires the amount required to be repaid by a
person who fails to complete all of the teaching requirements to be
proportional to the amount of time served toward the teaching obligation.
Establishes that a person receiving a Teach for Texas hope tuition grant
has failed to satisfy the conditions of the grant if the person fails to
remain enrolled in or make steady progress in the degree program for which
the grant was made without good cause to be determined by THECB. 

Sec.  56.310. ADOPTION AND DISTRIBUTION OF RULES.  Requires THECB to adopt
administrative rules for this subchapter.  Requires THECB to distribute to
all higher education institutions and school districts the rules adopted
under this subchapter. 

Sec.  56.311. FUNDING.  Establishes that the assistance program is funded
from the Texas hope tuition scholarship trust fund, which is established
outside the treasury but is held in trust by the comptroller.  Authorizes
money on the trust fund to be spent without appropriation and only to fund
the assistance program.  Requires interest and income from the trust's
assets to be deposited into the trust fund.  Authorizes THECB in each state
fiscal year to use funds from the trust fund to cover administrative costs,
not to exceed 2.5 percent of the total amount of funds deposited in the
trust fund for that year.  Authorizes THECB to accept gifts and grants from
any public or private source.  Authorizes the Texas Legislature to
appropriate funds to the Texas hope tuition scholarship trust fund. 

SECTION 2. (a)  Effective date:  September 1, 1999.

(b)  Requires the Texas Higher Education Coordinating Board to make grants
under the Texas Hope Tuition Scholarship Program beginning with the 2000
fall semester. 

SECTION 3. Emergency clause.