By Longoria                                           H.B. No. 1329
         76R1657 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 requirements or agree to
 1-4     teach in a field with a critical teacher shortage.
 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 SCHOLARSHIP PROGRAM
 1-9           Sec. 56.301.  DEFINITION.  In this subchapter, "coordinating
1-10     board" means the Texas Higher Education Coordinating Board.
1-11           Sec. 56.302.  PROGRAM NAME; PURPOSE.  (a)  The student
1-12     financial assistance program authorized by this subchapter is known
1-13     as the Texas Hope Scholarship Program, and an individual grant
1-14     awarded under this subchapter is known as a hope scholarship.
1-15           (b)  The purpose of the program is to provide a grant of
1-16     money for tuition and required fees to enable a qualified person to
1-17     attend a public or private institution of higher education if the
1-18     person maintains excellent academic performance or agrees to teach
1-19     in a public preschool, primary, or secondary school in this state
1-20     in a teaching field with a critical shortage of teachers.
1-21           Sec. 56.303.  TYPES OF SCHOLARSHIPS.  There are two types of
1-22     hope scholarships, the hope scholarship for academic excellence and
1-23     the hope teacher scholarship.
1-24           Sec. 56.304.  ELIGIBLE PERSON.  (a)  To be eligible for a
 2-1     hope scholarship, a person must:
 2-2                 (1)  be a Texas resident as defined by coordinating
 2-3     board rules;
 2-4                 (2)  enroll as a full-time or part-time student in an
 2-5     institution of higher education as defined by Section 61.003 or
 2-6     approved under 61.222;
 2-7                 (3)  be from a low-income or middle-income family and
 2-8     establish financial need as defined by coordinating board rules;
 2-9                 (4)  have:
2-10                       (A)  graduated from a secondary school with a
2-11     cumulative grade average that is equal to or greater than the
2-12     equivalent of 85 on a scale of 100; or
2-13                       (B)  completed a program of instruction at the
2-14     secondary school level in a home-school setting or received
2-15     credentials equivalent to a high school degree, and have completed
2-16     at least 15 semester credit hours or the equivalent at an
2-17     institution of higher education described by Subsection (a)(2) with
2-18     a cumulative grade point average of at least 3.0 or the equivalent;
2-19                 (5)  meet any reasonable attendance and disciplinary
2-20     standards established by the coordinating board;
2-21                 (6)  meet the applicable requirements of Section 56.305
2-22     or 56.306;
2-23                 (7)  have applied for any available financial
2-24     assistance; and
2-25                 (8)  have complied with any other administrative
2-26     requirements adopted by the coordinating board under this
2-27     subchapter.
 3-1           (b)  A person is not eligible to receive a hope scholarship
 3-2     while enrolled in an undergraduate program if the person has been
 3-3     granted a baccalaureate degree.
 3-4           (c)  A person is not eligible to receive a hope scholarship
 3-5     if the person has been convicted of a felony, a crime involving
 3-6     moral turpitude, or an offense under Chapter 481, Health and Safety
 3-7     Code (Texas Controlled Substances Act), or under the law of any
 3-8     other jurisdiction involving a controlled substance as defined by
 3-9     Chapter 481, Health and Safety Code, unless the person has met the
3-10     other applicable eligibility requirements under this subchapter and
3-11     has:
3-12                 (1)  received a certificate of discharge by the Texas
3-13     Department of Criminal Justice or a correctional facility or
3-14     completed a period of probation ordered by a court, and at least
3-15     two years have elapsed from the date of the receipt or completion;
3-16     or
3-17                 (2)  been pardoned, had the record of the offense
3-18     expunged from the person's record, or otherwise been released from
3-19     the resulting ineligibility to receive a hope scholarship.
3-20           Sec. 56.305.  REQUIREMENTS FOR HOPE SCHOLARSHIP FOR ACADEMIC
3-21     EXCELLENCE.  (a)  A hope scholarship for academic excellence is
3-22     available only to a person enrolled in an undergraduate degree or
3-23     certificate program.  A person may not receive a hope scholarship
3-24     for academic excellence for more than 140 semester hours or the
3-25     equivalent, except that a student enrolled in a baccalaureate
3-26     degree program requiring more than 130 semester credit hours or the
3-27     equivalent may receive a scholarship for a total number of semester
 4-1     credit hours equal to 10 more than the number required for the
 4-2     degree program.
 4-3           (b)  To receive a hope scholarship for academic excellence, a
 4-4     person who has completed fewer than 15 semester credit hours or the
 4-5     equivalent at any institution or institutions of higher education
 4-6     must be eligible for a hope scholarship under Section 56.304 and
 4-7     must specifically meet the requirement of Section 56.304(a)(4).
 4-8           (c)  To receive a hope scholarship for academic excellence, a
 4-9     person other than a person described by Subsection (b) must:
4-10                 (1)  have completed at least 15 semester credit hours
4-11     or the equivalent at an institution or institutions of higher
4-12     education described by Section 56.304(a)(2) with a cumulative grade
4-13     point average of at least 3.0 on a four-point scale or the
4-14     equivalent; and
4-15                 (2)  maintain satisfactory progress in the person's
4-16     degree or certification program as determined by the coordinating
4-17     board.
4-18           Sec. 56.306.  REQUIREMENTS FOR HOPE TEACHER SCHOLARSHIP.
4-19     (a)  A hope teacher scholarship is available only to a person who:
4-20                 (1)  has completed at least 60 semester credit hours or
4-21     the equivalent at an institution or institutions of higher
4-22     education described by Section 56.304(a)(2);
4-23                 (2)  is enrolled in a baccalaureate or master's degree
4-24     program in a teaching field certified by the coordinating board as
4-25     experiencing a critical shortage of teachers in this state; and
4-26                 (3)  has been accepted into a teacher certification
4-27     program approved by the coordinating board.
 5-1           (b)  A person may not receive hope teacher scholarships for
 5-2     more than four semesters or summer sessions of at least nine weeks.
 5-3           (c)  To receive a hope teacher scholarship, a person must
 5-4     agree to teach full-time at the preschool, primary, or secondary
 5-5     level in a public school in this state in the person's chosen
 5-6     critical field for one academic year for each $2,500 the person
 5-7     receives in hope teacher scholarships.
 5-8           (d)  The person must fulfill the teaching obligation of this
 5-9     section within the applicable period specified by this subsection
5-10     after the person completes the degree program and any related
5-11     courses required for teacher certification, unless the coordinating
5-12     board grants the person additional time to complete the teaching
5-13     obligation.  The period within which the person must complete the
5-14     teaching obligation is a number of years equal to the number of
5-15     academic years that the person is required to teach, plus one
5-16     additional year.  The coordinating board shall grant a person
5-17     additional time to complete the teaching obligation equal to a
5-18     period during which the person demonstrates to the board that the
5-19     person is:
5-20                 (1)  enrolled full-time in a degree or certificate
5-21     program at a public or private institution of higher education in
5-22     or outside of this state;
5-23                 (2)  serving on active duty as a member of the armed
5-24     services of the United States;
5-25                 (3)  temporarily disabled so that the person is unable
5-26     to teach;
5-27                 (4)  temporarily unable to secure employment to satisfy
 6-1     the teaching obligation because the person is responsible for the
 6-2     care of:
 6-3                       (A)  a child under 12 years of age; or
 6-4                       (B)  the person's disabled spouse or parent;
 6-5                 (5)  seeking and unable to secure employment to satisfy
 6-6     the teaching obligation for a single period not to exceed 12
 6-7     months; or
 6-8                 (6)  subject to any other hardship or special
 6-9     circumstances the board determines to be just cause to provide the
6-10     person with additional time to satisfy the teaching obligation.
6-11           (e)  The coordinating board shall cancel a person's teaching
6-12     obligation if the board determines that the person:
6-13                 (1)  has become permanently disabled so that the person
6-14     is not able to teach; or
6-15                 (2)  has died.
6-16           Sec. 56.307.  ADMINISTRATIVE AUTHORITY.  The coordinating
6-17     board shall provide a hope scholarship to each eligible person
6-18     enrolled in an eligible institution of higher education.  The total
6-19     amount of hope scholarships awarded by the board may not exceed the
6-20     amount available in the Texas hope scholarship trust fund.  If
6-21     there are insufficient funds available to provide a scholarship to
6-22     each eligible person, the board shall award the available
6-23     scholarships to the eligible persons with the greatest financial
6-24     need.
6-25           Sec. 56.308.  PAYMENT OF SCHOLARSHIP.  (a)  On receipt of a
6-26     person's hope scholarship application, an enrollment report from
6-27     the institution of higher education enrolling the person providing
 7-1     the coordinating board with the information the board requires to
 7-2     determine the person's eligibility, and a certification of the
 7-3     amount of financial need from the institution of higher education,
 7-4     the board shall determine whether the person is eligible for a
 7-5     scholarship and, if the person is selected to receive a
 7-6     scholarship, shall distribute the amount of the scholarship for the
 7-7     person to the institution of higher education or directly to the
 7-8     person as determined by the board.
 7-9           (b)  The amount of a hope scholarship is $1,500 for each
7-10     semester or summer session of at least nine weeks.
7-11           Sec. 56.309.  HOPE TEACHER SCHOLARSHIP CONDITIONAL;
7-12     REPAYMENT.  (a)  A hope teacher scholarship is conditioned on the
7-13     person's performance of the applicable teaching requirements of
7-14     Section 56.306.  The scholarship is considered a loan until the
7-15     conditions of the scholarship are met.
7-16           (b)  The coordinating board shall require a person who
7-17     receives a hope teacher scholarship to sign a promissory note
7-18     acknowledging the conditional nature of the scholarship and
7-19     promising to repay the amount of the scholarship plus applicable
7-20     interest and reasonable collection costs if the person does not
7-21     satisfy the applicable conditions.  The board shall determine the
7-22     terms of the promissory note.  To the extent practicable, the terms
7-23     must be the same as those applicable to state or federally
7-24     guaranteed student loans made at the same time.  All amounts
7-25     collected in repayment of a scholarship, including interest, but
7-26     excluding collection costs paid by the board to another person to
7-27     collect or assist in collecting the amount, shall be deposited to
 8-1     the credit of the Texas hope scholarship trust fund.
 8-2           (c)  The amount required to be repaid by a person who fails
 8-3     to complete the teaching obligations of the person's scholarship
 8-4     shall be determined in proportion to the portion of the teaching
 8-5     obligation that the person has satisfied.
 8-6           (d)  A person receiving a hope teacher scholarship is
 8-7     considered to have failed to satisfy the conditions of the
 8-8     scholarship, and the scholarship automatically becomes a loan, if
 8-9     the person fails to remain enrolled in or to make steady progress
8-10     in the degree program or teacher certification program for which
8-11     the scholarship was awarded without good cause as determined by the
8-12     coordinating board.
8-13           Sec. 56.310.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
8-14     coordinating board shall adopt rules to administer this subchapter.
8-15           (b)  The coordinating board shall distribute to each
8-16     institution of higher education and to each school district copies
8-17     of all rules adopted under this subchapter.
8-18           Sec. 56.311.  FUNDING.  (a)  The Texas Hope Scholarship
8-19     Program is funded from the Texas hope scholarship trust fund.  The
8-20     trust fund is established outside the treasury but is held in trust
8-21     by the comptroller.  Money in the trust fund may be spent without
8-22     appropriation and only to fund the program.  Interest and income
8-23     from the assets of the trust fund shall be credited to and
8-24     deposited in the trust fund.
8-25           (b)  In each state fiscal year the coordinating board may
8-26     spend from the trust fund to cover the costs of administering the
8-27     program an amount not to exceed 2.5 percent of the total amount of
 9-1     money deposited into the fund in that fiscal year.
 9-2           (c)  The coordinating board may solicit and accept gifts and
 9-3     grants from any public or private source for the purposes of this
 9-4     subchapter.
 9-5           (d)  The legislature may appropriate money to the Texas hope
 9-6     scholarship trust fund.
 9-7           SECTION 2.  (a)  This Act takes effect September 1, 1999.
 9-8           (b)  The Texas Higher Education Coordinating Board shall
 9-9     award scholarships under the Texas Hope Scholarship Program
9-10     beginning with the 2000 fall semester.
9-11           SECTION 3.  The importance of this legislation and the
9-12     crowded condition of the calendars in both houses create an
9-13     emergency and an imperative public necessity that the
9-14     constitutional rule requiring bills to be read on three several
9-15     days in each house be suspended, and this rule is hereby suspended.