By Cuellar                                             H.B. No. 713
         76R4157 CAG-D                           
                                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
 1-5     Scholarship 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 SCHOLARSHIP 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 Scholarship Program, and an
1-23     individual scholarship awarded under this subchapter is known as a
1-24     Texas Gateway scholarship.
 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     Scholarship Program and shall adopt any rules necessary to
 2-7     implement the program or this subchapter. The coordinating board
 2-8     shall consult with the student financial aid officers of eligible
 2-9     institutions in developing the rules.
2-10           (b)  The coordinating board shall adopt rules to provide a
2-11     Texas Gateway scholarship to an eligible student enrolled in an
2-12     eligible institution of higher education in the most efficient
2-13     manner possible.
2-14           (c)  The total amount of Texas Gateway scholarships awarded
2-15     may not exceed the amount available for the program from
2-16     appropriations, gifts, grants, or other funds.
2-17           (d)  In determining who should receive a Texas Gateway
2-18     scholarship, the coordinating board and the eligible institutions
2-19     shall give highest priority to awarding scholarships to students
2-20     who demonstrate the greatest financial need.
2-21           Sec. 56.304.  ELIGIBLE PERSON.  (a)  To be eligible initially
2-22     for a Texas Gateway scholarship, a person must:
2-23                 (1)  be a resident of this state as determined by
2-24     coordinating board rules;
2-25                 (2)  be a graduate of a public high school in this
2-26     state or a private high school in this state accredited by an
2-27     organization recognized by the State Board of Education;
 3-1                 (3)  for a scholarship awarded for the 2003 fall
 3-2     semester or a subsequent semester or term, have graduated from a
 3-3     public high school in this state not earlier than the 1998-1999
 3-4     school year and have completed the recommended or advanced high
 3-5     school curriculum established under Section 28.002 or an equivalent
 3-6     curriculum recognized by the State Board of Education;
 3-7                 (4)  meet financial need requirements as defined by the
 3-8     coordinating board;
 3-9                 (5)  be enrolled in an undergraduate degree or
3-10     certificate program at an eligible institution;
3-11                 (6)  enroll for at least one-half of a full course load
3-12     as an entering freshman in an undergraduate degree or certificate
3-13     program; and
3-14                 (7)  comply with any other requirement adopted by the
3-15     coordinating board under this subchapter.
3-16           (b)  A person is not eligible to receive a Texas Gateway
3-17     scholarship if the person has been granted a baccalaureate degree.
3-18           (c)  A person may not receive a Texas Gateway scholarship for
3-19     more than 150 semester credit hours or the equivalent.
3-20           Sec. 56.305.  ACADEMIC PERFORMANCE REQUIREMENTS.  (a)  After
3-21     initially qualifying for a Texas Gateway scholarship, a person may
3-22     continue to receive a Texas Gateway scholarship during each
3-23     semester or term in which the person is enrolled at an eligible
3-24     institution only if the person makes satisfactory academic progress
3-25     toward an undergraduate degree or certificate as determined by the
3-26     coordinating board.
3-27           (b)  A person who qualifies for and subsequently receives a
 4-1     Texas Gateway scholarship, who receives an undergraduate
 4-2     certificate or associate degree, and who enrolls, not later than
 4-3     the 12th month after the month the person receives the certificate
 4-4     or degree, in a program leading to a higher-level undergraduate
 4-5     degree continues to be eligible for a scholarship.
 4-6           Sec. 56.306.  SCHOLARSHIP USE.  (a)  A  person receiving a
 4-7     Texas Gateway scholarship may use the money to pay any usual and
 4-8     customary cost of attendance at an institution of higher education
 4-9     incurred by the student.
4-10           (b)  The person shall designate initially on the person's
4-11     application whether the money will be used for tuition and fees or
4-12     whether the scholarship proceeds should be disbursed to the
4-13     student.  A person may, in a subsequent semester or term, change
4-14     the disbursement instructions.
4-15           (c)  Before the scholarship proceeds may be disbursed to the
4-16     person receiving a scholarship, the person receiving the proceeds
4-17     must present proof of payment of all of the person's tuition and
4-18     fees or of an arrangement for the payment of tuition or fees.  If
4-19     the person receiving a scholarship has not paid tuition and fees by
4-20     the date the amounts are due, the institution disbursing the
4-21     proceeds may retain the amount of the person's tuition and fees
4-22     from the proceeds until proof of payment or an arrangement for
4-23     payment is presented.
4-24           (d)  An eligible institution may not require a person to use
4-25     the money to pay tuition and fees.
4-26           Sec. 56.307.  SCHOLARSHIP AMOUNT.  (a)  The amount of a Texas
4-27     Gateway scholarship for a semester or term for a person enrolled in
 5-1     an eligible institution other than an institution covered by
 5-2     Subsection (b) is the amount of tuition and required fees charged
 5-3     to the student.
 5-4           (b)  The amount of a Texas Gateway scholarship for a student
 5-5     enrolled at a private or independent institution of higher
 5-6     education is the amount determined by the coordinating board as the
 5-7     average statewide amount of tuition and required fees that a
 5-8     resident student enrolled full-time in a baccalaureate degree
 5-9     program would be charged for that semester or term at general
5-10     academic institutions.
5-11           (c)  The amount of a Texas Gateway scholarship may not be
5-12     reduced by any gift aid for which the person is eligible, unless
5-13     the total amount of a person's scholarship plus any other gift aid
5-14     received exceeds the total cost of attendance at an eligible
5-15     institution.
5-16           Sec. 56.308.  NOTIFICATION OF PROGRAM TO STUDENTS AND HIGH
5-17     SCHOOLS.  (a)  The coordinating board shall distribute to each
5-18     eligible institution of higher education and to each school
5-19     district a copy of the rules adopted under this subchapter.
5-20           (b)  Each school district shall:
5-21                 (1)  notify its students of the scholarship program and
5-22     the eligibility requirements of the program; and
5-23                 (2)  ensure that each student's official transcript or
5-24     diploma indicates whether the student has completed the recommended
5-25     high school curriculum established under Section 28.002.
5-26           Sec. 56.309.  FUNDING.  The coordinating board may  solicit
5-27     and accept gifts and grants from any public or private source for
 6-1     the purposes of this subchapter.
 6-2           SECTION 2.  Section 54.5021(c), Education Code, is amended to
 6-3     read as follows:
 6-4           (c)  Not later than August 31 of each fiscal year, each
 6-5     institution of higher education that has an unobligated and
 6-6     unexpended balance in its student deposit fund that exceeds 150
 6-7     percent of the total deposits to that fund during that year shall
 6-8     remit to the Texas Higher Education Coordinating Board the amount
 6-9     of that excess.  The coordinating board shall allocate on an
6-10     equitable basis amounts received under this subsection to
6-11     institutions of higher education that do not have an excess
6-12     described by this subsection for deposit in their student deposit
6-13     fund.  The amount allocated under this subsection may be used only
6-14     for making scholarship awards under Subchapter M, Chapter 56 [to
6-15     needy and deserving students under this section].
6-16           SECTION 3.  Section 56.039, Education Code, is amended to
6-17     read as follows:
6-18           Sec. 56.039.  FULL USE OF FUNDS.  At the end of a fiscal
6-19     year, if the total amount of unencumbered funds that have been set
6-20     aside under this subchapter by an institution of higher education,
6-21     together with the total amount of unencumbered funds transferred by
6-22     that institution to the Coordinating Board, Texas College and
6-23     University System, exceeds 150 percent of the amount of funds set
6-24     aside by that institution in that fiscal year, the institution
6-25     shall transfer the excess amount to the coordinating board.  The
6-26     coordinating board shall use funds transferred under this section
6-27     to award scholarships under Subchapter M [as provided by law to
 7-1     students at institutions other than the institution that
 7-2     transferred the funds].
 7-3           SECTION 4.  Section 151.423, Tax Code, is amended to read as
 7-4     follows:
 7-5           Sec. 151.423.  REIMBURSEMENT TO TAXPAYER FOR TAX COLLECTIONS.
 7-6     A taxpayer may deduct and withhold one-half of one percent of the
 7-7     amount of taxes due from the taxpayer on a timely return as
 7-8     reimbursement for the cost of collecting the taxes imposed by this
 7-9     chapter.  The comptroller shall provide a card with each form
7-10     distributed for the collection of taxes under this chapter.  The
7-11     card may be inserted by the taxpayer with the tax payment to
7-12     provide for contribution of all or part of the reimbursement
7-13     provided by this section for use as scholarships [student financial
7-14     assistance grants offered] under Subchapter M, Chapter 56,
7-15     Education Code.  If the taxpayer chooses to contribute the
7-16     reimbursement for the scholarships [student grants], the taxpayer
7-17     shall include the amount of the reimbursement contribution with the
7-18     tax payment.  The comptroller shall transfer money contributed
7-19     under this section for scholarships under Subchapter M, Chapter 56,
7-20     Education Code, [student grants] to the appropriate fund.
7-21           SECTION 5.  Sections 54.215 and 54.216, Education Code, are
7-22     repealed.
7-23           SECTION 6.  Subchapter F, Chapter 56, Education Code, is
7-24     repealed effective June 1, 1999.
7-25           SECTION 7.  Subchapter L, Chapter 61, Education Code, is
7-26     repealed effective June 1, 1999.
7-27           SECTION 8.  Any money appropriated to or collected for  a
 8-1     program abolished under Section 5, 6, or 7 of this Act or that
 8-2     exists in any account to support a program abolished under Section
 8-3     5, 6, or 7 of this Act, including the Texas New Horizons
 8-4     Scholarship Trust Fund, is transferred to the Texas Higher
 8-5     Education Coordinating Board for use in the Texas Gateway to the
 8-6     Future Scholarship Program.
 8-7           SECTION 9.  (a) The Texas Higher Education Coordinating Board
 8-8     shall review and study the laws relating to student financial aid,
 8-9     grant, and scholarship programs or tuition and fee waivers or
8-10     exemptions. The study shall describe improvements that may be made
8-11     to existing programs to maximize the benefit of the programs to the
8-12     state and its students and shall include recommendations for
8-13     legislative or administrative action that may be taken to
8-14     consolidate, expand, or otherwise modify existing programs or
8-15     create new programs.
8-16           (b)  The Texas Higher Education Coordinating Board shall
8-17     report its activities and findings to the governor, the lieutenant
8-18     governor, and the speaker of the house of representatives not later
8-19     than December 1, 2000.
8-20           SECTION 10.  A person receiving an exemption from tuition,
8-21     fees, or charges under Section 54.215, Education Code,  on the
8-22     effective date of this Act may continue to receive the exemption
8-23     under Section 54.215 until the person is no longer eligible for the
8-24     exemption under Section 54.215 as that section exists on January 1,
8-25     1999. The costs of the exemptions authorized under this section
8-26     shall be covered by the Texas Gateway to the Future Scholarship
8-27     Program.
 9-1           SECTION 11.  (a) The Texas Higher Education Coordinating
 9-2     Board and the eligible institutions of higher education shall award
 9-3     scholarships under the Texas Gateway to the Future Scholarship
 9-4     Program beginning with the 1999 fall semester.
 9-5           (b)  The Texas Higher Education Coordinating Board shall
 9-6     adopt the rules for awarding scholarships under the Texas Gateway
 9-7     to the Future Scholarship Program not later than July 25, 1999.
 9-8           SECTION 12.  The importance of this legislation and the
 9-9     crowded condition of the calendars in both houses create an
9-10     emergency and an imperative public necessity that the
9-11     constitutional rule requiring bills to be read on three several
9-12     days in each house be suspended, and this rule is hereby suspended,
9-13     and that this Act take effect and be in force from and after its
9-14     passage, and it is so enacted.