By Dunnam, Rangel, Farabee                            H.B. No. 2867
         Substitute the following for H.B. No. 2867:
         By Rangel                                         C.S.H.B. No. 2867
                                A BILL TO BE ENTITLED
 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.
1-17           (b)  In adopting rules under this section, the board may not
1-18     require an institution to match a scholarship or grant offer.
1-19           SECTION 2.  (a)  The Texas Higher Education Coordinating
1-20     Board shall adopt rules relating to matching scholarships as
1-21     provided by Section 61.086, Education Code, as added by this Act,
1-22     not later than September 1, 1999.
1-23           (b)  Not later than December 31, 2000, the Texas Higher
1-24     Education Coordinating Board shall report on the initial
 2-1     implementation of this Act.  The report shall include a description
 2-2     of the number of Texas high school students who leave the state to
 2-3     attend out-of-state institutions of higher education and a
 2-4     description of any method used to retain Texas students at Texas
 2-5     institutions of higher education.  The coordinating board shall
 2-6     deliver the report to the presiding officer of the standing
 2-7     committee on higher education in each house of the legislature.
 2-8           SECTION 3.  The importance of this legislation and the
 2-9     crowded condition of the calendars in both houses create an
2-10     emergency and an imperative public necessity that the
2-11     constitutional rule requiring bills to be read on three several
2-12     days in each house be suspended, and this rule is hereby suspended,
2-13     and that this Act take effect and be in force from and after its
2-14     passage, and it is so enacted.