76R8174 CAG-D                           
         By Cuellar, Rangel, Capelo, Uresti,                    H.B. No. 713
            Brown of Brazos
         Substitute the following for H.B. No. 713:
         By Cuellar                                         C.S.H.B. No. 713
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the consolidation, modification, or repeal of student
 1-3     financial aid, grant, and scholarship  programs or tuition and fee
 1-4     waivers and the creation of the Texas Gateway to the Future Grant
 1-5     Program.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Chapter 56, Education Code, is amended by adding
 1-8     Subchapter M to read as follows:
 1-9          SUBCHAPTER M.  TEXAS GATEWAY TO THE FUTURE GRANT PROGRAM
1-10           Sec. 56.301.  DEFINITIONS.  In this subchapter:
1-11                 (1)  "Coordinating board" means the Texas Higher
1-12     Education Coordinating Board.
1-13                 (2)  "Eligible institution" means:
1-14                       (A)  an institution of higher education; or
1-15                       (B)  a private or independent institution of
1-16     higher education.
1-17                 (3)  "Private or independent institution of higher
1-18     education," "public junior college," and "public technical
1-19     institute" have the meanings assigned by Section 61.003.
1-20           Sec. 56.302.  PROGRAM NAME; PURPOSE.  (a)  The student
1-21     financial assistance program authorized by this subchapter is known
1-22     as the Texas Gateway to the Future Grant Program, and an individual
1-23     grant awarded under this subchapter is known as a Texas Gateway
1-24     grant.
 2-1           (b)  The purpose of this subchapter is to provide a grant of
 2-2     money to enable eligible students to attend public and private
 2-3     institutions of higher education in this state.
 2-4           Sec. 56.303.  ADMINISTRATION OF PROGRAM.  (a)  The
 2-5     coordinating board shall administer the Texas Gateway to the Future
 2-6     Grant Program and shall adopt any rules necessary to implement the
 2-7     program or this subchapter. The coordinating board shall consult
 2-8     with the student financial aid officers of eligible institutions in
 2-9     developing the rules.
2-10           (b)  The coordinating board shall adopt rules to provide a
2-11     Texas Gateway grant to an eligible student enrolled in an eligible
2-12     institution in the most efficient manner possible.
2-13           (c)  The total amount of Texas Gateway grants awarded may not
2-14     exceed the amount available for the program from appropriations,
2-15     gifts, grants, or other funds.
2-16           (d)  In determining who should receive a Texas Gateway grant,
2-17     the coordinating board and the eligible institutions shall give
2-18     highest priority to awarding grants to students who demonstrate the
2-19     greatest financial need.
2-20           Sec. 56.304.  INITIAL ELIGIBILITY FOR GRANT.  (a)  To be
2-21     eligible initially for a Texas Gateway grant, a person must:
2-22                 (1)  be a resident of this state as determined by
2-23     coordinating board rules;
2-24                 (2)  be a graduate of a public high school in this
2-25     state or a private high school in this state accredited by an
2-26     organization recognized by the State Board of Education who
2-27     graduated not earlier than the 1998-1999 school year and who
 3-1     completed the recommended or advanced high school curriculum
 3-2     established under Section 28.025 or an equivalent curriculum
 3-3     recognized by the State Board of Education;
 3-4                 (3)  meet financial need requirements as defined by the
 3-5     coordinating board;
 3-6                 (4)  be enrolled in an undergraduate degree or
 3-7     certificate program at an eligible institution;
 3-8                 (5)  enroll for at least one-half of a full course load
 3-9     as an entering freshman in an undergraduate degree or certificate
3-10     program; and
3-11                 (6)  comply with any other requirement adopted by the
3-12     coordinating board under this subchapter.
3-13           (b)  A person is not eligible to receive a Texas Gateway
3-14     grant if the person has been granted a baccalaureate degree.
3-15           (c)  A person may not receive a Texas Gateway grant for more
3-16     than 150 semester credit hours or the equivalent.
3-17           (d)  A person may complete the advanced high school
3-18     curriculum requirements  of Subsection (a)(2) by attending courses
3-19     at the student's high school or by completing courses offered by
3-20     distance learning under Section 28.002(l).
3-21           (e)  The requirement in Subsection (a)(2) that a person must
3-22     have completed the recommended or advanced high school curriculum
3-23     or its equivalent does not apply to a person who:
3-24                 (1)  attended a high school that the commissioner of
3-25     education certifies did not offer all the necessary courses to
3-26     complete all parts of the recommended or advanced curriculum or its
3-27     equivalent; and
 4-1                 (2)  completed all courses at the high school offered
 4-2     toward the completion of the recommended or advanced curriculum or
 4-3     its equivalent.
 4-4           Sec. 56.305.  CONTINUING ELIGIBILITY AND ACADEMIC PERFORMANCE
 4-5     REQUIREMENTS.  (a)  After initially qualifying for a Texas Gateway
 4-6     grant, a person may continue to receive a Texas Gateway grant
 4-7     during each semester or term in which the person is enrolled at an
 4-8     eligible institution only if the person:
 4-9                 (1)  meets financial need requirements as defined by
4-10     the coordinating board;
4-11                 (2)  is enrolled in an undergraduate degree or
4-12     certificate program at an eligible institution;
4-13                 (3)  is enrolled for at least one-half of a full course
4-14     load in the person's undergraduate degree or certificate program;
4-15                 (4)  makes satisfactory academic progress toward an
4-16     undergraduate degree or certificate; and
4-17                 (5)  complies with any other requirement adopted by the
4-18     coordinating board.
4-19           (b)  If a person fails to meet any of the requirements of
4-20     Subsection (a) after the completion of any semester or term, the
4-21     person may not receive a Texas Gateway grant under this subchapter
4-22     during the next semester or term in which the person enrolls.  A
4-23     person may become eligible to receive a grant in a subsequent
4-24     semester or term if the person:
4-25                 (1)  completes a semester or term during which the
4-26     student is not eligible for a scholarship; and
4-27                 (2)  meets all the requirements of Subsection (a).
 5-1           (c)  A person who qualifies for and subsequently receives a
 5-2     Texas Gateway grant, who receives an undergraduate certificate or
 5-3     associate degree, and who enrolls, not later than the 12th month
 5-4     after the month the person receives the certificate or degree, in a
 5-5     program leading to a higher-level undergraduate degree continues to
 5-6     be eligible for a grant to the extent other eligibility
 5-7     requirements are met.
 5-8           (d)  For purposes of this section, a person makes
 5-9     satisfactory academic progress toward an undergraduate degree or
5-10     certificate only if the person:
5-11                 (1)  completed at least 80 percent of the semester
5-12     credit hours attempted in the student's most recent semester or
5-13     term; and
5-14                 (2)  has earned an overall grade point average of at
5-15     least 2.0 on a four point scale or the equivalent on coursework
5-16     previously attempted at institutions of higher education.
5-17           Sec. 56.306.  GRANT USE.  (a)  A  person receiving a Texas
5-18     Gateway grant may use the money to pay any usual and customary cost
5-19     of attendance at an institution of higher education incurred by the
5-20     student.
5-21           (b)  An institution may disburse all or part of the proceeds
5-22     of a Texas Gateway grant to an eligible person only if all tuition
5-23     and required fees owed by the person to the institution have been
5-24     paid.
5-25           Sec. 56.307.  GRANT AMOUNT.  (a)  The amount of a Texas
5-26     Gateway grant for a semester or term for a person enrolled
5-27     full-time at an eligible institution other than an institution
 6-1     covered by Subsection (b), (c), or (d) is the amount determined by
 6-2     the coordinating board as the average statewide amount of tuition
 6-3     and required fees that a resident student enrolled full-time in a
 6-4     baccalaureate degree program would be charged for that semester or
 6-5     term at general academic institutions.
 6-6           (b)  The amount of a Texas Gateway grant for a student
 6-7     enrolled full-time at a private or independent institution of
 6-8     higher education is the amount determined by the coordinating board
 6-9     as the average statewide amount of tuition and required fees that a
6-10     resident student enrolled full-time in a baccalaureate degree
6-11     program would be charged for that semester or term at general
6-12     academic institutions.
6-13           (c)  The amount of a Texas Gateway grant for a student
6-14     enrolled full-time at a public technical institute is the amount
6-15     determined by the coordinating board as the average statewide
6-16     amount of tuition and required fees that a resident student
6-17     enrolled full-time in an associate degree or certificate program
6-18     would be charged for that semester or term at public technical
6-19     institutes.
6-20           (d)  The amount of a Texas Gateway grant for a student
6-21     enrolled full-time at a public junior college is the amount
6-22     determined by the coordinating board as the average statewide
6-23     amount of tuition and required fees that a student who is a
6-24     resident of the junior college district and is enrolled full-time
6-25     in an associate degree or certificate program would be charged for
6-26     that semester or term at public junior colleges.
6-27           (e)  The amount of a Texas Gateway grant for a student
 7-1     enrolled part-time at an eligible institution is equal to the pro
 7-2     rata share of the average statewide amount of tuition and required
 7-3     fees, as determined by the coordinating board under this section,
 7-4     that is applicable to the type of institution in which the person
 7-5     is enrolled.
 7-6           (f)  The amount of a Texas Gateway grant may not be reduced
 7-7     by any gift aid for which the person is eligible, unless the total
 7-8     amount of a person's grant plus any gift aid received exceeds the
 7-9     total cost of attendance at an eligible institution.
7-10           (g)  Not later than January 1 of each year, the coordinating
7-11     board shall publish the amounts of each Texas Gateway grant for
7-12     each type of institution established by the board for the next
7-13     academic year.
7-14           Sec. 56.308.  NOTIFICATION OF PROGRAM; RESPONSIBILITIES OF
7-15     SCHOOL DISTRICTS.  (a)  The coordinating board shall distribute to
7-16     each eligible institution and to each school district a copy of the
7-17     rules adopted under this subchapter.
7-18           (b)  Each school district shall:
7-19                 (1)  notify its middle school students, junior high
7-20     school students, and high school students and those students'
7-21     parents of the grant program and the eligibility requirements of
7-22     the program in a manner that assists the district in implementing a
7-23     strategy adopted by the district under Section 11.252(a)(4); and
7-24                 (2)  ensure that each student's official transcript or
7-25     diploma indicates whether the student has completed or will
7-26     complete:
7-27                       (A)  the recommended or advanced high school
 8-1     curriculum established under Section 28.025; or
 8-2                       (B)  for a school district covered by Section
 8-3     56.304(e)(1), the required portion of the recommended or advanced
 8-4     high school curriculum in the manner described in Section
 8-5     56.304(e)(2).
 8-6           (c)  A student's transcript must indicate information
 8-7     described by Subsection (b)(2) not later than the end of the
 8-8     student's junior year.
 8-9           Sec. 56.309.  FUNDING.  The coordinating board may  solicit
8-10     and accept gifts and grants from any public or private source for
8-11     the purposes of this subchapter.
8-12           SECTION 2.  Section 54.5021(c), Education Code, is amended to
8-13     read as follows:
8-14           (c)  Not later than August 31 of each fiscal year, each
8-15     institution of higher education that has an unobligated and
8-16     unexpended balance in its student deposit fund that exceeds 150
8-17     percent of the total deposits to that fund during that year shall
8-18     remit to the Texas Higher Education Coordinating Board the amount
8-19     of that excess.  The coordinating board shall allocate on an
8-20     equitable basis amounts received under this subsection to
8-21     institutions of higher education that do not have an excess
8-22     described by this subsection for deposit in their student deposit
8-23     fund.  The amount allocated under this subsection may be used only
8-24     for making grants under Subchapter M, Chapter 56 [scholarship
8-25     awards to needy and deserving students under this section].
8-26           SECTION 3.  Section 56.039, Education Code, is amended to
8-27     read as follows:
 9-1           Sec. 56.039.  FULL USE OF FUNDS.  At the end of a fiscal
 9-2     year, if the total amount of unencumbered funds that have been set
 9-3     aside under this subchapter by an institution of higher education,
 9-4     together with the total amount of unencumbered funds transferred by
 9-5     that institution to the Coordinating Board, Texas College and
 9-6     University System, exceeds 150 percent of the amount of funds set
 9-7     aside by that institution in that fiscal year, the institution
 9-8     shall transfer the excess amount to the coordinating board.  The
 9-9     coordinating board shall use funds transferred under this section
9-10     to award grants under Subchapter M [scholarships as provided by law
9-11     to students at institutions other than the institution that
9-12     transferred the funds].
9-13           SECTION 4.  Subchapter C, Chapter 61, Education Code, is
9-14     amended by adding Section 61.0776 to read as follows:
9-15           Sec. 61.0776.  CENTER FOR FINANCIAL AID INFORMATION.  (a)
9-16     The board, in cooperation with institutions of higher education,
9-17     public school counselors, the Texas Guaranteed Student Loan
9-18     Corporation, regional education service centers, and any private
9-19     entities approved by the board, shall develop a center for
9-20     financial aid information.  The center shall disseminate
9-21     information about financial aid opportunities and procedures,
9-22     including information about different types of financial aid
9-23     available, eligibility requirements, and procedures for applying
9-24     for financial aid.
9-25           (b)  To assist the board in developing information provided
9-26     by the center, the board shall create and appoint an advisory
9-27     committee that consists of experts in financial aid administration,
 10-1    public school counselors, and other persons who can provide insight
 10-2    into the informational needs of students.
 10-3          (c)  The board may designate an institution of higher
 10-4    education  or other entity with appropriate facilities and
 10-5    resources to operate or house the center.
 10-6          (d)  The center shall maintain a toll-free telephone line
 10-7    that is staffed by persons knowledgeable about financial aid
 10-8    information in this state.
 10-9          (e)  The center shall, based on the advisory committee's
10-10    recommendations, publish information concerning financial aid
10-11    opportunities in this state and shall:
10-12                (1)  furnish a written copy of the information to each
10-13    middle school, junior high school, and high school counselor in
10-14    this state; and
10-15                (2)  post the information on an Internet website
10-16    accessible to the public.
10-17          SECTION 5.  Section 11.252(a), Education Code, is amended to
10-18    read as follows:
10-19          (a)  Each school district shall have a district improvement
10-20    plan that is developed, evaluated, and revised annually, in
10-21    accordance with district policy, by the superintendent with the
10-22    assistance of the district-level committee established under
10-23    Section 11.251.  The purpose of the district improvement plan is to
10-24    guide district and campus staff in the improvement of student
10-25    performance for all student groups in order to attain state
10-26    standards in respect to the academic excellence indicators adopted
10-27    under Section 39.051.  The district improvement plan must include
 11-1    provisions for:
 11-2                (1)  a comprehensive needs assessment addressing
 11-3    district student performance on the academic excellence indicators,
 11-4    and other appropriate measures of performance, that are
 11-5    disaggregated by all student groups served by the district,
 11-6    including categories of ethnicity, socioeconomic status, sex, and
 11-7    populations served by special programs;
 11-8                (2)  measurable district performance objectives for all
 11-9    appropriate academic excellence indicators for all student
11-10    populations, appropriate objectives for special needs populations,
11-11    and other measures of student performance that may be identified
11-12    through the comprehensive needs assessment;
11-13                (3)  strategies for improvement of student performance
11-14    that include:
11-15                      (A)  instructional methods for addressing the
11-16    needs of student groups not achieving their full potential;
11-17                      (B)  methods for addressing the needs of students
11-18    for special programs, such as suicide prevention, conflict
11-19    resolution, violence prevention, or dyslexia treatment programs;
11-20                      (C)  dropout reduction;
11-21                      (D)  integration of technology in instructional
11-22    and administrative programs;
11-23                      (E)  discipline management;
11-24                      (F)  staff development for professional staff of
11-25    the district;
11-26                      (G)  career education to assist students in
11-27    developing the knowledge, skills, and competencies necessary for a
 12-1    broad range of career opportunities; and
 12-2                      (H)  accelerated education;
 12-3                (4)  strategies for providing to middle school, junior
 12-4    high school, and high school students information about:
 12-5                      (A)  higher education, including admissions and
 12-6    financial aid opportunities;
 12-7                      (B)  the Texas Gateway to the Future Grant
 12-8    Program; and
 12-9                      (C)  the need for students to make informed
12-10    curriculum choices to be prepared for success beyond high school;
12-11                (5)  resources needed to implement identified
12-12    strategies;
12-13                (6) [(5)]  staff responsible for ensuring the
12-14    accomplishment of each strategy;
12-15                (7) [(6)]  timelines for ongoing monitoring of the
12-16    implementation of each improvement strategy; and
12-17                (8) [(7)]  formative evaluation criteria for
12-18    determining periodically whether strategies are resulting in
12-19    intended improvement of student  performance.
12-20          SECTION 6.  Section 21.451(a), Education Code, is amended to
12-21    read as follows:
12-22          (a)  The staff development provided by a school district must
12-23    be conducted in accordance with minimum standards developed by the
12-24    commissioner for program planning, preparation, and improvement.
12-25    The minimum standards must include guidelines for the cooperation
12-26    of principals, counselors, and teachers to provide middle school
12-27    students, junior high school students, high school students, and
 13-1    those students' parents with information about higher education.
 13-2    The staff development:
 13-3                (1)  must include technology training and training in
 13-4    conflict resolution and discipline strategies; [and]
 13-5                (2)  may include instruction as to what is permissible
 13-6    under law, including opinions of the United States Supreme Court,
 13-7    in regard to prayers in public school; and
 13-8                (3)  must include information on:
 13-9                      (A)  incorporating information about higher
13-10    education admissions and financial aid, including the Texas Gateway
13-11    to the Future Grant Program into the curriculum;
13-12                      (B)  the importance of students making informed
13-13    curriculum choices to be prepared for success beyond high school;
13-14    and
13-15                      (C)  sources of information on higher education
13-16    admissions and financial aid.
13-17          SECTION 7.  Section 28.002, Education Code, is amended by
13-18    adding Subsection (l) to read as follows:
13-19          (l)  A school district may offer courses required for
13-20    completion of the recommended or advanced curriculum by distance
13-21    learning methods.  A school district may not offer more than 10
13-22    percent of the courses of the recommended or advanced curriculum
13-23    for a school by distance learning methods.
13-24          SECTION 8.  Section 151.423, Tax Code, is amended to read as
13-25    follows:
13-26          Sec. 151.423.  REIMBURSEMENT TO TAXPAYER FOR TAX COLLECTIONS.
13-27    A taxpayer may deduct and withhold one-half of one percent of the
 14-1    amount of taxes due from the taxpayer on a timely return as
 14-2    reimbursement for the cost of collecting the taxes imposed by this
 14-3    chapter.  The comptroller shall provide a card with each form
 14-4    distributed for the collection of taxes under this chapter.  The
 14-5    card may be inserted by the taxpayer with the tax payment to
 14-6    provide for contribution of all or part of the reimbursement
 14-7    provided by this section for use as grants [student financial
 14-8    assistance grants offered] under Subchapter M, Chapter 56,
 14-9    Education Code.  If the taxpayer chooses to contribute the
14-10    reimbursement for the grants [student grants], the taxpayer shall
14-11    include the amount of the reimbursement contribution with the tax
14-12    payment.  The comptroller shall transfer money contributed under
14-13    this section for grants under Subchapter M, Chapter 56, Education
14-14    Code, [student grants] to the appropriate fund.
14-15          SECTION 9.  Sections 54.215 and 54.216, Education Code, are
14-16    repealed.
14-17          SECTION 10.  Subchapter F, Chapter 56, Education Code, is
14-18    repealed effective June 1, 1999.
14-19          SECTION 11.  Subchapter L, Chapter 61, Education Code, is
14-20    repealed effective June 1, 1999.
14-21          SECTION 12.  Any money appropriated to or collected for a
14-22    program abolished under Section 9, 10, or 11 of this Act or that
14-23    exists in any account to support a program abolished under Section
14-24    9, 10, or 11 of this Act, including the Texas New Horizons
14-25    Scholarship Trust Fund, is transferred to the Texas Higher
14-26    Education Coordinating Board for use in the Texas Gateway to the
14-27    Future Grant Program.
 15-1          SECTION 13.  (a)  The Texas Higher Education Coordinating
 15-2    Board shall review and study the laws relating to student financial
 15-3    aid, grant, and scholarship programs or tuition and fee waivers or
 15-4    exemptions. The study shall describe improvements that may be made
 15-5    to existing programs to maximize the benefit of the programs to the
 15-6    state and its students and shall include recommendations for
 15-7    legislative or administrative action that may be taken to
 15-8    consolidate, expand, or otherwise modify existing programs or
 15-9    create new programs.
15-10          (b)  The Texas Higher Education Coordinating Board shall
15-11    report its activities and findings to the governor, the lieutenant
15-12    governor, and the speaker of the house of representatives not later
15-13    than December 1, 2000.
15-14          SECTION 14.  A person receiving an exemption from tuition,
15-15    fees, or charges under Section 54.215, Education Code, or a
15-16    scholarship under Section 54.216, Education Code, on the effective
15-17    date of this Act may continue to receive the exemption under
15-18    Section 54.215 or a scholarship under Section 54.216 until the
15-19    person is no longer eligible for the exemption under Section 54.215
15-20    or the scholarship under Section 54.216, as the applicable section
15-21    exists on January 1, 1999.  The costs of the exemptions or
15-22    scholarships authorized under this section shall be covered by the
15-23    Texas Gateway to the Future Grant Program.
15-24          SECTION 15.  (a)  The Texas Higher Education Coordinating
15-25    Board, in conjunction with the commissioner of education, shall
15-26    conduct a study relating to the performance of students at
15-27    institutions of higher education as that performance relates to
 16-1    whether a student completed the recommended or advanced high school
 16-2    curriculum.
 16-3          (b)  The board shall include in the study consideration of:
 16-4                (1)  the number of schools that offered all or part of
 16-5    the recommended or advanced high school curriculum;
 16-6                (2)  the types and number of students who completed the
 16-7    recommended or advanced high school curriculum; and
 16-8                (3)  the effect, if any, of the method that a school
 16-9    district uses to present or deliver any portion of the recommended
16-10    or advanced high school curriculum to its students.
16-11          (c)  Not later than January 1, 2003, the board shall issue a
16-12    final report describing the findings of the study conducted under
16-13    this section and any recommendations for legislation or
16-14    administrative action to the governor, lieutenant governor, speaker
16-15    of the house, and the presiding officer of each legislative
16-16    committee charged with the oversight of primary and secondary
16-17    education or higher education.  The board may issue preliminary
16-18    reports related to the study at any time.
16-19          (d)  This section expires January 2, 2003.
16-20          SECTION 16.  (a)  The Texas Higher Education Coordinating
16-21    Board and the eligible institutions of higher education shall award
16-22    scholarships under the Texas Gateway to the Future Grant Program
16-23    beginning with the 1999 fall semester.
16-24          (b)  The Texas Higher Education Coordinating Board shall
16-25    adopt the rules for awarding scholarships under the Texas Gateway
16-26    to the Future Grant Program not later than July 25, 1999.
16-27          SECTION 17.  The importance of this legislation and the
 17-1    crowded condition of the calendars in both houses create an
 17-2    emergency and an imperative public necessity that the
 17-3    constitutional rule requiring bills to be read on three several
 17-4    days in each house be suspended, and this rule is hereby suspended,
 17-5    and that this Act take effect and be in force from and after its
 17-6    passage, and it is so enacted.