HBA-SEP C.S.H.B. 3050 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3050
By: Rangel
Higher Education
4/4/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Community and technical colleges constitute the largest sector of higher
education in Texas, accounting for an enrollment of over 430,000 students
or 45 percent of the total student enrollment.  However, community and
technical college students only received approximately 14 percent of the
total allocation of Toward EXcellence, Access, & Success (TEXAS) grant
funds for the fiscal year 2000.  With 70 percent of the state's freshman
and sophomore students, and 75 percent of the state's minority freshman and
sophomore students attending community and technical colleges, it may be
important to develop an additional method to assist these students in
completing their educational goals.  C.S.H.B. 3050 establishes the Toward
EXcellence, Access, & Success (TEXAS) II grant program to provide grants to
enable eligible students to attend public junior colleges and technical
institutes in this state.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Higher Education Coordinating
Board in SECTION 1 (Sections 56.353 and 56.357, Education Code) and in
SECTION 2 of this bill. 

ANALYSIS

C.S.H.B. 3050 amends the Education Code to establish the Toward EXcellence,
Access, & Success (TEXAS) II grant program to provide grants to enable
eligible students to attend public junior colleges and technical institutes
in this state (Sec. 56.352).  The bill requires the Texas Higher Education
Coordinating Board (board) to administer the TEXAS II grant program and to
adopt any rules necessary to implement the program.  The board is also
required to consult with the student financial aid officers of eligible
institutions in developing the rules and to adopt rules to provide a TEXAS
II grant to an eligible student enrolled in an eligible institution in a
manner consistent with the administration of federal student financial aid
programs.  In determining who should receive a TEXAS II grant, the board
and the eligible institution are required to give the highest priority to
students who demonstrate the greatest financial need (Sec. 56.353). 

The bill sets forth eligibility requirements and continued eligibility and
academic performance requirements for a TEXAS II grant (Sec. 56.354 and
56.355).  A person receiving a TEXAS II grant may use the money to pay any
usual and customary cost of attendance at an eligible institution incurred
by the student. The institution may disburse all or part of the proceeds of
a TEXAS II grant to an eligible person only if the tuition and required
fees incurred by the person at the institution have been paid (Sec.
56.356).  The amount of a TEXAS II grant for a student enrolled full-time
at a public technical institute or junior college is the amount determined
by the board as the average statewide amount of tuition and required fees
that a resident student enrolled full-time in an associate degree or
certificate program would be charged for that semester or term at public
technical institutes or public junior colleges.   

The bill authorizes the board to adopt rules that allow the board to
increase or decrease, in proportion to the number of semester credit hours
in which a student is enrolled, the amount of a TEXAS II grant award to a
student who is enrolled in a number of semester credit hours in excess of
or below the number of  semester credit hours necessary for eligibility.
The bill prohibits the amount of a TEXAS II grant from being reduced by any
gift aid for which the person receiving the grant is eligible, unless the
total amount of a person's grant plus any gift aid received exceeds the
total cost of attendance at an eligible institution.  Not later than
January 31 of each year, the board is required to publish the amounts of
each grant established by the board for the academic year beginning the
next fall semester.   

The total amount of grants that a student is authorized to receive for a
TEXAS II grant and a tuition equalization grant is prohibited from
exceeding an amount equal to 50 percent of the average state appropriation
in the biennium preceding the biennium in which the grant is made for a
full-time student or the equivalent at public senior colleges and
universities, as determined by the board.  An eligible institution is
prohibited from denying admission to or enrollment in the institution based
on a person's eligibility to receive a TEXAS II grant or a person's receipt
of a TEXAS II grant.  An institution is authorized to use other available
sources of financial aid to cover any difference in the amount of a TEXAS
II grant and the actual amount of tuition and required fees (Sec. 56.357).

The bill requires the board and eligible institutions to award TEXAS II
scholarships beginning with the 2001 fall semester.  The bill requires the
board to adopt the initial rules for awarding TEXAS II grants no later than
July 31, 2001 (SECTION 2). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.  

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3050 modifies the original by removing the provision prohibiting
an eligible institution from charging a person attending the institution
who also receives a TEXAS II grant an amount of tuition and required fees
in excess of the amount of the TEXAS II grant received by the person.