By Hinojosa                                            H.B. No. 527
         76R1978 JSA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to providing scholarships to students at institutions of
 1-3     higher education who meet certain academic, citizenship, financial
 1-4     need, and other requirements.
 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 HOPE TUITION SCHOLARSHIP
 1-9                                   PROGRAM
1-10           Sec. 56.301.  DEFINITION.  In this subchapter, "coordinating
1-11     board" means the Texas Higher Education Coordinating Board.
1-12           Sec. 56.302.  PROGRAM NAME; PURPOSE.  (a)  The student
1-13     financial assistance program authorized by this subchapter is known
1-14     as the Texas Hope Tuition Scholarship Program, and an individual
1-15     grant awarded under this subchapter is known as a Texas hope
1-16     tuition grant.
1-17           (b)  The purpose of the program is to provide a grant of
1-18     money for tuition and required fees to enable a qualified person to
1-19     attend an institution of higher education if the person maintains
1-20     good academic performance, acts as a good citizen, and provides
1-21     public service or agrees to teach in a primary or secondary school
1-22     in this state in a community or teaching field with a critical
1-23     shortage of teachers.
1-24           Sec. 56.303.  TYPES OF GRANTS.  There are two types of hope
 2-1     tuition grants, the hope tuition grant for public service and the
 2-2     Teach for Texas hope tuition grant.
 2-3           Sec. 56.304.  ELIGIBLE PERSON.  (a)  To be eligible for a
 2-4     Texas hope tuition grant, a person must:
 2-5                 (1)  be a Texas resident as defined by coordinating
 2-6     board rules;
 2-7                 (2)  enroll as a full-time or part-time student in an
 2-8     institution of higher education as defined by Section 61.003 or
 2-9     approved under 61.222;
2-10                 (3)  be from a low-income or middle-income family and
2-11     establish financial need as defined by coordinating board rules;
2-12                 (4)  have:
2-13                       (A)  graduated from a secondary school with a
2-14     cumulative grade average that is equal to or greater than the
2-15     equivalent of 80 on a scale of 100; or
2-16                       (B)  completed a program of instruction at the
2-17     secondary school level in a home-school setting or received
2-18     credentials equivalent to a high school degree, and have
2-19     demonstrated academic excellence in any manner determined by the
2-20     coordinating board, such as through scores obtained on standardized
2-21     tests;
2-22                 (5)  meet the applicable requirements of Section 56.305
2-23     or 56.306;
2-24                 (6)  have applied for any available financial
2-25     assistance; and
2-26                 (7)  have complied with any other administrative
2-27     requirements adopted by the coordinating board under this
 3-1     subchapter.
 3-2           (b)  A person is not eligible to receive a Texas hope tuition
 3-3     grant while enrolled in an undergraduate program if the person has
 3-4     been granted a baccalaureate degree.
 3-5           (c)  A person is not eligible to receive a Texas hope tuition
 3-6     grant if the person has been convicted of a felony, a crime
 3-7     involving moral turpitude, or an offense under Chapter 481, Health
 3-8     and Safety Code (Texas Controlled Substances Act), or under the law
 3-9     of any other jurisdiction involving a controlled substance as
3-10     defined by Chapter 481, Health and Safety Code, unless the person
3-11     has met the other applicable eligibility requirements under this
3-12     subchapter and has:
3-13                 (1)  received a certificate of discharge by the Texas
3-14     Department of Criminal Justice or a correctional facility or
3-15     completed a period of probation ordered by a court, and at least
3-16     two years have elapsed from the date of the receipt or completion;
3-17     or
3-18                 (2)  been pardoned, had the record of the offense
3-19     expunged from the person's record, or otherwise been released from
3-20     the resulting ineligibility to receive a Texas hope tuition grant.
3-21           Sec. 56.305.  REQUIREMENTS FOR HOPE TUITION GRANT FOR PUBLIC
3-22     SERVICE.  (a)  A hope tuition grant for public service is available
3-23     only to a person enrolled in an undergraduate degree or certificate
3-24     program.  A person may not receive a tuition grant for public
3-25     service for more than 140 semester hours or the equivalent.
3-26           (b)  To receive a hope tuition grant for public service, a
3-27     person must agree to perform public service as provided by
 4-1     coordinating board rule as a volunteer to a nonprofit charitable
 4-2     organization or governmental entity approved by the board in a
 4-3     number of hours that equals or exceeds an average of five hours for
 4-4     each full week of the term or semester.  The person must enter into
 4-5     an agreement to perform the required public service at the
 4-6     beginning of each term or semester covered by the grant.
 4-7           (c)  A person is exempt from the public service requirement
 4-8     in any semester in which the student:
 4-9                 (1)  is employed for compensation for an average of at
4-10     least 10 hours per week;
4-11                 (2)  must perform family obligations inconsistent with
4-12     the performance of the public service requirement, as determined by
4-13     the coordinating board; or
4-14                 (3)  is subject to any other circumstances such that
4-15     performance of the public service requirement would unreasonably
4-16     interfere with the student's educational opportunity, as determined
4-17     by the coordinating board.
4-18           (d)  To continue receiving hope tuition grants for public
4-19     service, a person must:
4-20                 (1)  maintain a grade-point average of at least 3.0 on
4-21     a four-point scale or the equivalent, with one semester probation
4-22     if the student fails to do so;
4-23                 (2)  submit a certificate of completion for all prior
4-24     public service the person agreed to perform; and
4-25                 (3)  submit a new financial aid application each
4-26     semester.
4-27           Sec. 56.306.  REQUIREMENTS FOR TEACH FOR TEXAS HOPE TUITION
 5-1     GRANT.  (a)  A Teach for Texas hope tuition grant is available only
 5-2     to a person who:
 5-3                 (1)  is enrolled in a baccalaureate or master's degree
 5-4     program in a teaching field certified by the coordinating board as
 5-5     experiencing a critical shortage of teachers in this state in the
 5-6     year in which the person begins the degree program; or
 5-7                 (2)  agrees to teach in a public school in this state
 5-8     in a community, which is not required to be specifically designated
 5-9     at the time the person receives the grant, certified by the
5-10     coordinating board as experiencing a critical shortage of teachers
5-11     in any year in which the person receives a grant or in any
5-12     subsequent year in which the person fulfills the teaching
5-13     obligation.
5-14           (b)  To receive a Teach for Texas hope tuition grant, a
5-15     person must agree to teach full-time at the preschool, primary, or
5-16     secondary level in a public school in this state in the person's
5-17     chosen critical field or in a community experiencing a critical
5-18     teacher shortage, as applicable, for one academic year for each 60
5-19     semester hours or the equivalent, or each fraction of 60 semester
5-20     hours or the equivalent, for which the person receives a tuition
5-21     grant.
5-22           (c)  The person must fulfill the teaching obligation of this
5-23     section within the applicable period specified by this subsection
5-24     after the person completes the degree program and any related
5-25     courses required for teacher certification, unless the coordinating
5-26     board grants the person additional time to complete the teaching
5-27     obligation.  The period within which the person must complete the
 6-1     teaching obligation is a number of years equal to the number of
 6-2     academic years that the person is required to teach, plus one
 6-3     additional year.  The coordinating board shall grant a person
 6-4     additional time to complete the teaching obligation equal to a
 6-5     period during which the person demonstrates to the board that the
 6-6     person is:
 6-7                 (1)  enrolled full-time in a degree or certificate
 6-8     program at a public or private institution of higher education in
 6-9     or outside of this state;
6-10                 (2)  serving on active duty as a member of the armed
6-11     services of the United States;
6-12                 (3)  temporarily disabled so that the person is unable
6-13     to teach;
6-14                 (4)  temporarily unable to secure employment to satisfy
6-15     the teaching obligation because the person is responsible for the
6-16     care of:
6-17                       (A)  a child under 12 years of age; or
6-18                       (B)  the person's disabled spouse or parent;
6-19                 (5)  seeking and unable to secure employment to satisfy
6-20     the teaching obligation for a single period not to exceed 12
6-21     months; or
6-22                 (6)  subject to any other hardship or special
6-23     circumstances the board determines to be just cause to  provide the
6-24     person with additional time to satisfy the teaching obligation.
6-25           (d)  The coordinating board shall cancel a person's teaching
6-26     obligation if the board determines that the person:
6-27                 (1)  has become permanently disabled so that the person
 7-1     is not able to teach; or
 7-2                 (2)  has died.
 7-3           Sec. 56.307.  ADMINISTRATIVE AUTHORITY.  The coordinating
 7-4     board shall provide Texas hope tuition grants, in a number to be
 7-5     determined by the board after reviewing the money available for
 7-6     those grants, to eligible persons enrolled in an institution of
 7-7     higher education based on the financial need of each person
 7-8     receiving a grant.  The total amount of Texas hope tuition grants
 7-9     distributed by the board may not exceed the amount available in the
7-10     Texas hope tuition scholarship trust fund.  If there are
7-11     insufficient funds available to provide a grant to each eligible
7-12     person, the board shall award the available grants to the eligible
7-13     persons with the greatest financial need.
7-14           Sec. 56.308.  PAYMENT OF GRANT; AMOUNT.  (a)  On receipt of a
7-15     person's Texas hope tuition grant application, an enrollment report
7-16     from the institution of higher education enrolling the person
7-17     providing the coordinating board with the information the board
7-18     requires to determine the person's eligibility, and a certification
7-19     of the amount of financial need from the institution of higher
7-20     education, the board shall determine whether the person is eligible
7-21     for a grant and, if the person is selected to receive a grant,
7-22     shall distribute the amount of the grant for the person to the
7-23     institution of higher education.
7-24           (b)  The amount of a Texas hope tuition grant may not exceed
7-25     the average amount of tuition and required fees the student would
7-26     be charged at a public senior institution of higher education,
7-27     except that the amount of a Teach for Texas hope tuition grant may
 8-1     be in a greater amount, not to exceed two times the average amount
 8-2     of tuition and required fees the student would be charged at a
 8-3     public senior institution of higher education, according to the
 8-4     financial need of the student as determined by coordinating board
 8-5     rules.  When added to other gift aid, the amount of a grant may not
 8-6     exceed the financial need of the student.  A Texas hope tuition
 8-7     grant may not be applied to tuition or fees covered by a Pell grant
 8-8     or other federally funded or state-funded grant.
 8-9           Sec. 56.309.  GRANT CONDITIONAL; REPAYMENT.  (a)  A Texas
8-10     hope tuition grant is conditioned on the person's maintenance of
8-11     all qualifications provided by this subchapter and performance of
8-12     the applicable public service or teaching requirements of Section
8-13     56.305 or 56.306.  The grant is considered a loan until the
8-14     conditions of the grant are met.
8-15           (b)  The coordinating board shall require a person who
8-16     receives a grant under this subchapter to sign a promissory note
8-17     acknowledging the conditional nature of the grant and promising to
8-18     repay the amount of the grant plus applicable interest and
8-19     reasonable collection costs if the person does not satisfy the
8-20     applicable conditions.  The board shall determine the terms of the
8-21     promissory note.  To the extent practicable, the terms must be the
8-22     same as those applicable to state or federally guaranteed student
8-23     loans made at the same time.  All amounts collected in repayment of
8-24     a grant, including interest, but excluding collection costs paid by
8-25     the board to another person to collect or assist in collecting the
8-26     amount, shall be deposited to the credit of the Texas hope tuition
8-27     scholarship trust fund.
 9-1           (c)  The amount required to be repaid by a person who fails
 9-2     to complete the teaching obligations of the person's grant shall be
 9-3     determined in proportion to the portion of the teaching obligation
 9-4     that the person has satisfied.
 9-5           (d)  A person receiving a Teach for Texas hope tuition grant
 9-6     is considered to have failed to satisfy the conditions of the
 9-7     grant, and the grant automatically becomes a loan, if the person
 9-8     fails to  remain enrolled in or to make steady progress in the
 9-9     degree program for which the grant was made without good cause as
9-10     determined by the coordinating board.
9-11           Sec. 56.310.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
9-12     coordinating board shall adopt rules to administer this subchapter.
9-13           (b)  The coordinating board shall distribute to each
9-14     institution of higher education and to each school district copies
9-15     of all rules adopted under this subchapter.
9-16           Sec. 56.311.  FUNDING.  (a)  The Texas Hope Tuition
9-17     Scholarship Program is funded from the Texas hope tuition
9-18     scholarship trust fund.  The trust fund is established outside the
9-19     treasury but is held in trust by the comptroller.  Money in the
9-20     trust fund may be spent without appropriation and only to fund the
9-21     program.  Interest and income from the assets of the trust fund
9-22     shall be credited to and deposited in the trust fund.
9-23           (b)  In each state fiscal year the coordinating board may
9-24     spend  from the trust fund to cover the costs of administering the
9-25     program an amount not to exceed 2.5 percent of the total amount of
9-26     money deposited into the fund in that fiscal year.
9-27           (c)  The coordinating board may accept gifts and grants from
 10-1    any public or private source for the purposes of this subchapter.
 10-2          (d)  The legislature may appropriate money to the Texas hope
 10-3    tuition scholarship trust fund.
 10-4          SECTION 2.  (a)  This Act takes effect September 1, 1999.
 10-5          (b)  The Texas Higher Education Coordinating Board shall make
 10-6    grants under the Texas Hope Tuition Scholarship Program beginning
 10-7    with the 2000 fall semester.
 10-8          SECTION 3.  The importance of this legislation and the
 10-9    crowded condition of the calendars in both houses create an
10-10    emergency and an imperative public necessity that the
10-11    constitutional rule requiring bills to be read on three several
10-12    days in each house be suspended, and this rule is hereby suspended.