SRC-JJJ S.B. 98 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 98
76R272 JSA-DBy: Ellis
Higher Education
2/25/1999
As Filed


DIGEST 

Currently, Texas ranks 48th in the nation in the percent 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
Lone Star Scholars Program, which would provide scholarships to students
who meet certain requirements, and would cover certain costs of tuition and
required fees.    

PURPOSE

As proposed, S.B. 98 provides scholarships for students at institutions of
higher education who meet certain academic and other requirements. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Higher Education Coordinating
Board in SECTION 1 (Section 56.307, Education Code) of this bill. 

SECTION BY SECTION ANALYSIS

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

SUBCHAPTER M.  LONE STAR SCHOLARS PROGRAM

 Sec. 56.301.  DEFINITIONS.  Defines "coordinating board," "public junior
college" 

Sec. 56.302.  PROGRAM NAME; PURPOSE. Provides that the student financial
assistance program authorized by this subchapter is known as the Lone Star
Scholars Program and scholarships awarded in the program are known as lone
star scholarships.  Specifies the purpose of the program as providing a
grant of money to cover costs for a student at an institution of higher
education as long as the person maintains good grades. 

Sec. 56.303.  ELIGIBILITY.  Sets forth requirements for a person's
eligibility for a lone star scholarship.  Provides that a person with a
baccalaureate degree is not eligible to receive a lone star scholarship.
Sets forth parameters for those not eligible for the lone star scholarship.
Sets forth specifics regarding the number of semesters for which a person
may receive a scholarship.  Provides that a term or session of nine weeks
or less is  considered one-half of a semester and a term of nine weeks or
more is considered one semester. 

Sec. 56.304.  ACADEMIC PERFORMANCE REQUIREMENTS. Sets forth requirements
for a person's grade point average. 

Sec.  56.305.  AMOUNT OF SCHOLARSHIP.  Provides that the amount of a
person's lone star scholarship for the term or semester is determined by
the Texas Higher Education Coordinating Board (THECB) as the sum of
tuition, required fees, and amounts for certain necessary materials.
Provides that  the amount of a  lone star scholarship  for a person
enrolled in an institution that offers primarily certificates or associate
degrees is determined by THECB as the sum of certain amounts.  Specifies
that  the lone star scholarship is in addition to any other financial aid a
person receives, and  eligibility for or acceptance of  other financial aid
does not affect eligibility for a lone star scholarship.  

Sec. 56.306.  PAYMENT OF SCHOLARSHIP. Requires the THECB to determine
whether the person is eligible for a scholarship, and if so, to distribute
the scholarship to the institution.  Establishes that the total amount of
scholarship funds granted each year may not exceed the amount available in
the scholarship trust fund.  Specifies that if there are insufficient funds
to provide a scholarship for all eligible candidates, funds will be awarded
to those with the greatest financial need. 

Sec. 56.307.  ADOPTION AND DISTRIBUTION OF RULES.  Requires THECB to adopt
rules to administer this subchapter and to distribute to each institution
of higher education and school district copies of the rules. 

Sec. 56.308.  FUNDING.  Funds the Lone Star Scholars program from the lone
star scholarship trust fund, which is established outside the treasury, but
held in trust by the comptroller. Authorizes money in the trust fund to be
spent without appropriation and only to fund the program.  Requires
interest and income from the assets of the fund to be credited to and
deposited in the fund.  Authorizes THECB to spend money from the trust fund
to cover the cost of administering the program not to exceed a certain
amount.  Authorizes the THECB to accept gifts or grants from any public or
private source.  Provides that the legislature may appropriate money to the
trust fund. 

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

 (b) Requires THECB to award scholarships beginning with the 2000 fall
semester. 

SECTION 3.  Emergency clause.