1-1                                   AN ACT
 1-2     relating to a program that allows institutions of higher education
 1-3     in Texas to match a scholarship offered to Texas students by
 1-4     out-of-state institutions.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter C, Chapter 61, Education Code, is
 1-7     amended by adding Section 61.086 to read as follows:
 1-8           Sec. 61.086.  MATCHING SCHOLARSHIPS TO RETAIN STUDENTS IN
 1-9     TEXAS.  (a)  The board shall adopt rules that allow a public or
1-10     private or independent institution of higher education to use any
1-11     funds appropriated to the institution or that the institution may
1-12     use for the award of scholarships or grants to match, in whole or
1-13     in part, any nonathletic scholarship or grant offer, including an
1-14     offer of the payment of tuition, fees, room and board, or a
1-15     stipend, received by a graduate of a Texas public or private high
1-16     school from an out-of-state institution of higher education.  The
1-17     rules shall provide for verifying that an out-of-state institution
1-18     has made a nonathletic scholarship or grant offer to a student and
1-19     the amount of the offer.  The board may adopt any other rule
1-20     necessary to implement this section.
1-21           (b)  In adopting rules under this section, the board may not
1-22     require an institution to match a scholarship or grant offer.
1-23           (c)  Each public or private or independent institution of
1-24     higher education shall report to the board all scholarships or
 2-1     grants offered by out-of-state institutions for which the reporting
 2-2     institution offered a matching scholarship or grant under this
 2-3     section and all scholarships or grants offered or awarded by the
 2-4     reporting institution under this section and the methods used to
 2-5     encourage Texas high school graduates to attend that institution.
 2-6     The report shall include the race or ethnicity and gender of each
 2-7     person to whom that institution offered or awarded a scholarship or
 2-8     grant, the high school from which the person graduated, the
 2-9     out-of-state institution that offered the scholarship or grant, and
2-10     the value and type of each scholarship or grant.
2-11           SECTION 2.  (a)  The Texas Higher Education Coordinating
2-12     Board shall adopt rules relating to matching scholarships as
2-13     provided by Section 61.086, Education Code, as added by this Act,
2-14     not later than September 1, 1999.
2-15           (b)  Not later than December 31, 2000, the Texas Higher
2-16     Education Coordinating Board shall report on the initial
2-17     implementation of this Act.  The report shall include a description
2-18     of the students to whom scholarships were offered and awarded as
2-19     reported to the coordinating board by each institution covered by
2-20     Section 61.086, Education Code, as added by this Act.  The report
2-21     shall also include a description of the methods used by each
2-22     institution to encourage Texas high school graduates to attend
2-23     Texas institutions of higher education.  The coordinating board
2-24     shall deliver the report to the presiding officer of the standing
2-25     committee on higher education in each house of the legislature.
2-26           SECTION 3.  The importance of this legislation and the
2-27     crowded condition of the calendars in both houses create an
 3-1     emergency and an imperative public necessity that the
 3-2     constitutional rule requiring bills to be read on three several
 3-3     days in each house be suspended, and this rule is hereby suspended,
 3-4     and that this Act take effect and be in force from and after its
 3-5     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2867 was passed by the House on April
         21, 1999, by the following vote:  Yeas 148, Nays 0, 1 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 2867 on May 20, 1999, by the following vote:  Yeas 143, Nays 1,
         1 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2867 was passed by the Senate, with
         amendments, on May 18, 1999, by the following vote:  Yeas 30, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor