1-1 AN ACT
1-2 relating to the creation of a student endowment scholarship and
1-3 internship program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 56, Education Code, is amended by adding
1-6 Subchapter M to read as follows:
1-7 SUBCHAPTER M. STUDENT ENDOWMENT
1-8 SCHOLARSHIP AND INTERNSHIP PROGRAM
1-9 Sec. 56.241. DEFINITION. In this subchapter, "general
1-10 academic teaching institution" has the meaning assigned by Section
1-11 61.003.
1-12 Sec. 56.242. STUDENT ENDOWMENT SCHOLARSHIP AND INTERNSHIP
1-13 PROGRAM. The Student Endowment Scholarship and Internship Program
1-14 is an optional state grant program for all general academic
1-15 teaching institutions.
1-16 Sec. 56.243. ELECTION TO PARTICIPATE. Not later than
1-17 September 1, 2004, a general academic teaching institution may
1-18 elect to participate in the Student Endowment Scholarship and
1-19 Internship Program. For the institution to make the election, the
1-20 student government of the institution must determine by official
1-21 action that the program would benefit the institution. If the
1-22 student government determines that the program would benefit the
1-23 institution, in a general election called for that purpose a
1-24 majority of the students of the institution voting in the election
2-1 must approve an additional fee and the potential matching grant
2-2 from the state. If the majority approves the additional fee and
2-3 potential matching grant from the state, the governing board of the
2-4 institution shall impose and decide the structure of the additional
2-5 fee.
2-6 Sec. 56.244. TYPES OF SCHOLARSHIPS; INTERNSHIP. A general
2-7 academic teaching institution shall provide financial assistance
2-8 under this subchapter through scholarships based on leadership,
2-9 financial need, and academic achievement and through an internship
2-10 program.
2-11 Sec. 56.245. ELIGIBILITY. (a) With the assistance of an
2-12 advisory committee established by the governing board, the
2-13 governing board of the general academic teaching institution shall:
2-14 (1) determine the eligibility requirements for
2-15 scholarships or internship funding; and
2-16 (2) select students to receive the scholarships or
2-17 internship funding.
2-18 (b) A student is not eligible for a student endowment
2-19 scholarship or student endowment internship funding if the student
2-20 is on disciplinary or academic probation or if the student is not
2-21 enrolled at the institution.
2-22 (c) The institution may provide financial assistance under
2-23 this subchapter to students in any field or major designated by the
2-24 institution.
2-25 Sec. 56.246. AMOUNT OF SCHOLARSHIP OR INTERNSHIP FUNDING.
2-26 (a) During the five-year period during which the institution may
2-27 receive state matching funds, the amount of student endowment
3-1 scholarship funding for an internship may not exceed $500 per
3-2 semester or summer session.
3-3 (b) The amount of a student endowment scholarship may not
3-4 exceed the amount of tuition and required fees that a student would
3-5 be charged by the institution.
3-6 (c) The amount of student endowment internship funding may
3-7 not exceed the amount of tuition and required fees that a student
3-8 would be charged by the institution during the student's period of
3-9 internship.
3-10 (d) On receipt of a scholarship or internship funding under
3-11 this subchapter, a student must comply with any applicable
3-12 conditions of the scholarship or internship funding.
3-13 Sec. 56.247. STUDENT ENDOWMENT FUND. (a) Each institution
3-14 shall establish a student endowment fund consisting of the revenue
3-15 from the additional student fee, the state matching funds
3-16 appropriated for the purpose, and the interest and other income
3-17 from investment of the fund. The fund shall be invested by the
3-18 governing board in accordance with the policies governing
3-19 investment of other funds held and invested by the board on behalf
3-20 of the institution.
3-21 (b) Scholarships and internships shall be paid from the
3-22 fund, subject to the requirements of this section and Section
3-23 56.246.
3-24 (c) Scholarships and internships may be paid from both the
3-25 income and the principal of the fund, except that after the
3-26 five-year period during which state matching funds are payable, for
3-27 any year not more than five percent of the principal of the fund
4-1 may be expended for scholarships and internships.
4-2 (d) For purposes of this section, five percent of the
4-3 capital gains for any year from investment of the fund is
4-4 considered income.
4-5 SECTION 2. This Act takes effect September 1, 1999.
4-6 SECTION 3. The importance of this legislation and the
4-7 crowded condition of the calendars in both houses create an
4-8 emergency and an imperative public necessity that the
4-9 constitutional rule requiring bills to be read on three several
4-10 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3447 was passed by the House on May
14, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3447 was passed by the Senate on May
26, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor