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.