By Cuellar                                             H.B. No. 208
         76R2196 T                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the establishment of a scholarship program to provide
 1-3     Texas high school students with scholarships to Texas institutions
 1-4     of higher education.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Chapter 56, Education Code, is amended by adding
 1-7     Subchapter M to read as follows:
 1-8      SUBCHAPTER M.  TEXAS GATEWAY TO THE FUTURE SCHOLARSHIP PROGRAM. 
 1-9           Sec. 56.301.  PROGRAM NAME.  The student financial assistance
1-10     program authorized by this subchapter is known as the Texas Gateway
1-11     to the Future Scholarship Program, and an individual scholarship
1-12     awarded under this subchapter is known as a Texas Gateway
1-13     Scholarship.
1-14           Sec. 56.302.  PURPOSE.  The purpose of this subchapter is to
1-15     provide a grant of money to enable qualified students to attend
1-16     Texas institutions of higher education.
1-17           Sec. 56.303.  ADMINISTRATIVE AUTHORITY.  (a)  The Texas
1-18     Higher Education Coordinating Board shall administer the Texas
1-19     Gateway to the Future Scholarship Program.
1-20           (b)  The coordinating board shall provide a Texas Gateway
1-21     Scholarship to an eligible student enrolled in an eligible
1-22     institution of higher education in the most efficient manner
1-23     possible.
1-24           (c)  The total amount of Texas Gateway Scholarships awarded
 2-1     may not exceed the amount available for the Texas Gateway to the
 2-2     Future Scholarship Program from appropriations, gifts, grants or
 2-3     other funds.
 2-4           (d)  The coordinating board shall give highest priority in
 2-5     the awarding of scholarships to students who demonstrate the
 2-6     greatest financial need.
 2-7           (e)  During each state fiscal year, the coordinating board
 2-8     may use up to one percent of the funds appropriated for the Texas
 2-9     Gateway to the Future Scholarship Program to cover the costs of
2-10     administering the program.
2-11           Sec. 56.304.  ELIGIBLE INSTITUTION.  An eligible institution
2-12     of higher education is:
2-13                 (1)  an institution of higher education as defined by
2-14     Section 61.003(8); or
2-15                 (2)  a private or independent institution of higher
2-16     education as defined by Section 61.003(15).
2-17           Sec. 56.305.  ELIGIBLE PERSON.  (a)  To be eligible for a
2-18     Texas Gateway Scholarship, a person must:
2-19                 (1)  be a Texas resident under the rules of the Texas
2-20     Higher Education Coordinating Board;
2-21                 (2)  be from a low-income or middle-income family and
2-22     meet income or other financial need requirements as defined by
2-23     coordinating board rules;
2-24                 (3)  have family income of less than $75,000;
2-25                 (4)  be enrolled in an undergraduate degree or
2-26     certificate program at an eligible institution of higher education;
2-27                 (5)  enroll for at least one-half of a full course load
 3-1     as an entering freshman in an undergraduate degree or certificate
 3-2     program not later than the sixteenth month after the person's
 3-3     graduation from a Texas high school; and
 3-4                 (6)  comply with any other requirement adopted by the
 3-5     coordinating board under this subchapter.
 3-6           (b)  A person is not eligible to receive a Texas Gateway
 3-7     Scholarship if the person has a baccalaureate degree.
 3-8           (c)  A person may not receive a Texas Gateway Scholarship for
 3-9     more than 150 semester credit hours or the equivalent.
3-10           (d)  A person's eligibility for a Texas Gateway Scholarship
3-11     ends six years after the person first enrolls in an eligible
3-12     institution of higher education.
3-13           Sec. 56.306.  REQUIREMENTS FOR MAINTAINING ELIGIBILITY.  (a)
3-14     A person may receive a Texas Gateway Scholarship during each
3-15     semester in which the person enrolls if the person makes steady
3-16     academic progress toward an undergraduate degree or certificate.
3-17           (b)  A person who receives an undergraduate certificate or
3-18     associate's degree and who enrolls, not later than the sixth month
3-19     after the receipt of the certificate or degree, in a program
3-20     leading to a higher-level undergraduate degree continues to be
3-21     eligible for a scholarship.
3-22           Sec. 56.307.  SCHOLARSHIP DISBURSEMENT.  (a)  A person
3-23     receiving a Texas Gateway Scholarship may use the scholarship
3-24     proceeds for any usual and customary education-related expense
3-25     incurred by the student, including tuition and fees, books, and
3-26     room and board.
3-27           (b)  The person shall designate on the scholarship
 4-1     application whether the scholarship shall be used for tuition and
 4-2     fees or whether the scholarship proceeds should be disbursed to the
 4-3     student.
 4-4           (c)  A person receiving a scholarship in subsequent semesters
 4-5     shall  inform the institution of any change in the disbursement
 4-6     instructions.
 4-7           (d)  An institution may not require a scholarship recipient
 4-8     to use the proceeds to pay tuition and fees.
 4-9           Sec. 56.308.  SCHOLARSHIP AMOUNT. (a) The amount of a Texas
4-10     Gateway Scholarship for a student enrolled at a public institution
4-11     of higher education is an amount equal to the tuition and fees,
4-12     excluding incidental fees, charged to the student.
4-13           (b)  The amount of a Texas Gateway Scholarship for a student
4-14     enrolled at a private or independent institution of higher
4-15     education shall be an amount equal to the average tuition and fees,
4-16     excluding incidental fees, charged to a student at a public senior
4-17     institution of higher education.
4-18           (c)  The Texas Higher Education Coordinating Board shall
4-19     award annually scholarships based on the amount from
4-20     appropriations, gifts, grants, or other funds and the number of
4-21     eligible persons.  Persons demonstrating the greatest financial
4-22     need shall be given first priority for scholarships in the event
4-23     that there are not sufficient appropriated funds to provide
4-24     scholarships to all eligible persons.
4-25           (d)  The amount of the scholarship may not be reduced by any
4-26     gift aid for which the person is eligible.  The total amount of a
4-27     person's Texas Gateway Scholarship plus any gift aid received may
 5-1     not exceed the total cost of attendance at an institution of higher
 5-2     education.
 5-3           Sec. 56.309.  SCHOLARSHIP PAYMENT. The Texas Higher Education
 5-4     Coordinating Board shall establish policies and procedures for
 5-5     distributing the scholarship funds in the most efficient manner
 5-6     possible.
 5-7           Sec. 56.310.  FUTURE ELIGIBILITY REQUIREMENTS. (a) Beginning
 5-8     in fall semester of 2003, in order to be eligible for a Texas
 5-9     Gateway Scholarship, a student must graduate from a Texas high
5-10     school with a diploma designated as college preparatory by the
5-11     Texas Education Agency.
5-12           (b)  The Texas Education Agency, in consultation with the
5-13     Texas Higher Education Coordinating Board, public schools, and
5-14     institutions of higher education, shall determine the curriculum
5-15     needed to lead to a college preparatory diploma.  The education
5-16     agency may designate multiple diploma categories as college
5-17     preparatory.
5-18           (c)  Each high school in Texas shall ensure that the diploma
5-19     designation is either noted on each student's official transcript
5-20     or included in the documentation required to certify a student's
5-21     eligibility for the scholarship.
5-22           Sec. 56.311.  ADOPTION AND DISTRIBUTION OF RULES.  (a) The
5-23     Texas Higher Education Coordinating Board shall adopt rules
5-24     necessary to administer this subchapter.
5-25           (b)  The coordinating board shall distribute to each eligible
5-26     institution of higher education and to each school district a copy
5-27     of all rules adopted under this subchapter.
 6-1           (c)  Each school district shall notify its students to ensure
 6-2     the students' awareness of the scholarship program and the
 6-3     eligibility requirements.
 6-4           Sec. 56.312.  FUNDING.  (a)  The Texas Higher Education
 6-5     Coordinating Board may accept gifts and grants from any public or
 6-6     private source for the purposes of this subchapter.
 6-7           SECTION 2.  (a) The Texas Gateway Scholarships shall first be
 6-8     awarded for the fall semester 1999.
 6-9           (b)  The Texas Higher Education Coordinating Board shall
6-10     adopt the rules for awarding scholarships under Subchapter M,
6-11     Chapter 56, Education Code, as added by this Act, not later than
6-12     July 25, 1999.
6-13           (c)  A Texas Gateway Scholarship may only be awarded to a
6-14     person who graduates during the 1998-1999 academic year or after
6-15     that academic year.
6-16           SECTION 3.  The importance of this legislation and the
6-17     crowded condition of the calendars in both houses create an
6-18     emergency and an imperative public necessity that the
6-19     constitutional rule requiring bills to be read on three several
6-20     days in each house be suspended, and this rule is hereby suspended,
6-21     and that this Act take effect and be in force from and after its
6-22     passage, and it is so enacted.