By Ellis                                                S.B. No. 98
         76R272 JSA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to providing scholarships for students at institutions of
 1-3     higher education who meet certain academic and other requirements.
 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.  LONE STAR SCHOLARS PROGRAM
 1-8           Sec. 56.301.  DEFINITIONS.  In this subchapter:
 1-9                 (1)  "Coordinating board" means the Texas Higher
1-10     Education Coordinating Board.
1-11                 (2)  "Public junior college" and "public technical
1-12     institute" have the meanings assigned by Section 61.003.
1-13           Sec. 56.302.  PROGRAM NAME; PURPOSE.  (a)  The student
1-14     financial assistance program authorized by this  subchapter is
1-15     known as the Lone Star Scholars Program, and an individual
1-16     scholarship awarded under this  subchapter is known as a lone star
1-17     scholarship.
1-18           (b)  The purpose of the program is to provide a grant of
1-19     money in an amount that would cover the average cost of tuition,
1-20     required fees, and textbooks for a student at a public institution
1-21     of higher education to assist a qualified person to attend a public
1-22     or private institution of higher education as long as the person
1-23     maintains good academic performance.
1-24           Sec. 56.303.  ELIGIBILITY.  (a)  To be eligible for a lone
 2-1     star 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 Section 61.222;
 2-7                 (3)  have attended a public or private high school in
 2-8     this state:
 2-9                       (A)  for at least one academic year; or
2-10                       (B)  while the person's parent was serving on
2-11     active duty as a member of the armed services of the United States
2-12     stationed in this state;
2-13                 (4)  meet the applicable requirements of Section
2-14     54.304;
2-15                 (5)  have applied for any other available financial
2-16     assistance, including federal grants and other student financial
2-17     aid, as required by the coordinating board; and
2-18                 (6)  comply with any other administrative requirements
2-19     adopted by the coordinating board under this subchapter.
2-20           (b)  A person is not eligible to receive a lone star
2-21     scholarship if the person has been granted a baccalaureate degree.
2-22           (c)  A person is not eligible to receive a lone star
2-23     scholarship if the person has been convicted of a felony, a crime
2-24     involving moral turpitude, or an offense under Chapter 481, Health
2-25     and Safety Code (Texas Controlled Substances Act), or under the law
2-26     of any other jurisdiction involving a controlled substance as
2-27     defined by Chapter 481, Health and Safety Code, unless the person
 3-1     has met the other applicable eligibility requirements under this
 3-2     subchapter and has:
 3-3                 (1)  received a certificate of discharge by the Texas
 3-4     Department of Criminal Justice or a correctional facility or
 3-5     completed a period of probation ordered by a court, and at least
 3-6     two years have elapsed from the date of the receipt or completion;
 3-7     or
 3-8                 (2)  been pardoned, had the record of the offense
 3-9     expunged from the person's record, or otherwise been released from
3-10     the resulting disabilities of the conviction.
3-11           (d)  A person eligible for a lone star scholarship under
3-12     Subsection (a)(3)(A) may receive a lone star scholarship for a
3-13     number of semesters, not to exceed eight, equal to two times the
3-14     number of academic years the person attended high school in this
3-15     state for at least one-half of the academic year.  A person
3-16     eligible for a lone star scholarship under Subsection (a)(3)(B) may
3-17     receive a lone star scholarship for not more than eight semesters.
3-18     A person eligible under both Subsections (a)(3)(A) and (B) may not
3-19     receive a lone star scholarship for more than eight semesters.  For
3-20     purposes of this subsection, a term or session of less than nine
3-21     weeks is considered one-half of a semester.  A term or session of
3-22     nine weeks or more is considered one semester.
3-23           Sec. 56.304.  ACADEMIC PERFORMANCE REQUIREMENTS.  (a)  To
3-24     receive a lone star scholarship in the first semester a person
3-25     attends an institution described by Section 56.303(a)(2), the
3-26     person must have graduated from high school with a cumulative
3-27     grade-point average in the person's final four semesters of at
 4-1     least 3.0 on a four-point scale or the equivalent.  To receive a
 4-2     lone star scholarship in any subsequent semester, the person must
 4-3     maintain a cumulative grade-point average for all college-level
 4-4     academic courses previously attempted of at least 3.0 on a
 4-5     four-point scale or the equivalent.
 4-6           (b)  A person who becomes ineligible to receive a lone star
 4-7     scholarship because the person's grade-point average for
 4-8     college-level courses does not meet the standard required by
 4-9     Subsection (a) may restore the person's eligibility by raising that
4-10     grade-point average to the standard required by Subsection (a)  by
4-11     the end of the next semester the person attends a public or private
4-12     institution of higher education.
4-13           Sec. 56.305.  AMOUNT OF SCHOLARSHIP.  (a)  The amount of a
4-14     lone star scholarship for a term or semester for a person enrolled
4-15     in an institution other than an institution covered by Subsection
4-16     (b) is the amount determined by the coordinating board as the sum
4-17     of:
4-18                 (1)  the average amount of tuition and required fees a
4-19     student enrolled full-time in a baccalaureate degree program would
4-20     be charged for that term or semester at a public senior institution
4-21     of higher education in this state; and
4-22                 (2)  the average amount necessary to cover the cost of
4-23     textbooks and similar required materials for the term or semester
4-24     for a student described by Subdivision (1).
4-25           (b)  The amount of a lone star scholarship for a term or
4-26     semester for a person enrolled in a public junior college or public
4-27     technical institute or in another institution that offers primarily
 5-1     certificates or associate degrees is the amount determined by the
 5-2     coordinating board as the sum of:
 5-3                 (1)  the average amount of tuition and required fees a
 5-4     student enrolled full-time in an associate degree program would be
 5-5     charged for that term or semester at a public junior college; and
 5-6                 (2)  the average amount necessary to cover the cost of
 5-7     textbooks and similar required materials for the term or semester
 5-8     for a student described by Subdivision (1).
 5-9           (c)  A lone star scholarship is in addition to any other
5-10     amount of financial aid the applicant receives or is eligible to
5-11     receive from any source.  Except as provided by Section 56.306(c),
5-12     an applicant's eligibility for or acceptance of other financial aid
5-13     does not affect the applicant's eligibility to receive a
5-14     scholarship.
5-15           Sec. 56.306.  PAYMENT OF SCHOLARSHIP.  (a)  On receipt of a
5-16     person's lone star scholarship application and an enrollment report
5-17     from the institution of higher education enrolling the person
5-18     providing the coordinating board with the information the board
5-19     requires to determine the person's eligibility, the coordinating
5-20     board shall determine whether the person is eligible for a
5-21     scholarship and, if the person is eligible, shall distribute the
5-22     amount of the scholarship for the person to the institution of
5-23     higher education.
5-24           (b)  The total amount of lone star scholarships granted in an
5-25     academic year may not exceed the amount available in the lone star
5-26     scholarship trust fund.
5-27           (c)  If in an academic year there are insufficient funds
 6-1     available to provide a scholarship to each eligible person, the
 6-2     board shall award the available scholarships to the eligible
 6-3     persons with the greatest financial need.
 6-4           Sec. 56.307.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
 6-5     coordinating board shall adopt rules to administer this subchapter.
 6-6           (b)  The coordinating board shall distribute to each
 6-7     institution of higher education and to each school district copies
 6-8     of the rules adopted under this subchapter.
 6-9           Sec. 56.308.  FUNDING.  (a)  The Lone Star Scholars Program
6-10     is funded from the lone star scholarship trust fund.  The trust
6-11     fund is established outside the treasury but is held in trust by
6-12     the comptroller.  Money in the trust fund may be spent without
6-13     appropriation and only to fund the program.  Interest and income
6-14     from the assets of the trust fund shall be credited to and
6-15     deposited in the fund.
6-16           (b)  In each state fiscal year the coordinating board may
6-17     spend  from the trust fund to cover the costs of administering the
6-18     program an amount not to exceed 2.5 percent of the total amount of
6-19     money deposited into the fund in that fiscal year.
6-20           (c)  The coordinating board may accept gifts and grants from
6-21     any public or private source for the purposes of this subchapter.
6-22           (d)  The legislature may appropriate money to the trust fund.
6-23           SECTION 2.  (a)  This Act takes effect September 1, 1999.
6-24           (b)  The Texas Higher Education Coordinating Board shall
6-25     award scholarships under the Lone Star Scholars Program beginning
6-26     with the 2000 fall semester.
6-27           SECTION 3.  The importance of this legislation and the
 7-1     crowded condition of the calendars in both houses create an
 7-2     emergency and an imperative public necessity that the
 7-3     constitutional rule requiring bills to be read on three several
 7-4     days in each house be suspended, and this rule is hereby suspended.