By Jones of Dallas                                     H.B. No. 733
         77R2748 JSA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Texas Rising Star Scholarship
 1-3     Program for deserving junior college and technical institute
 1-4     students.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Chapter 56, Education Code, is amended by adding
 1-7     Subchapter N to read as follows:
 1-8            SUBCHAPTER N.  TEXAS RISING STAR SCHOLARSHIP PROGRAM
 1-9           Sec. 56.351.  DEFINITIONS.  In this subchapter:
1-10                 (1)  "Coordinating board" means the Texas Higher
1-11     Education Coordinating Board.
1-12                 (2)  "Eligible institution" means:
1-13                       (A)  a public junior college or public technical
1-14     institute, as defined by Section 61.003; or
1-15                       (B)  a private or independent institution of
1-16     higher education, as defined by Section 61.003, that is accredited
1-17     as a junior college.
1-18           Sec. 56.352.  PROGRAM NAME; PURPOSE.  (a)  The student
1-19     financial assistance program authorized by this subchapter is known
1-20     as the Texas Rising Star Scholarship Program, and an individual
1-21     scholarship awarded under this subchapter is known as a rising star
1-22     scholarship.
1-23           (b)  The purpose of this subchapter is to provide a grant of
1-24     money to enable qualified students to attend junior colleges and
 2-1     public technical institutes in this state.
 2-2           Sec. 56.353.  ADMINISTRATION OF PROGRAM.  (a)  The
 2-3     coordinating board shall administer the Texas Rising Star
 2-4     Scholarship Program and shall adopt any rules necessary to
 2-5     implement the program or this subchapter.
 2-6           (b)  The coordinating board shall adopt rules to determine
 2-7     which eligible persons receive rising star scholarships and to
 2-8     provide scholarships in the most efficient manner possible.
 2-9           (c)  The total amount of rising star scholarships awarded in
2-10     a state fiscal year may not exceed the amount available for the
2-11     program from appropriations, gifts, grants, or other funds.
2-12           (d)  In determining who should receive a scholarship, the
2-13     coordinating board shall give highest priority to awarding
2-14     scholarships to students who demonstrate the greatest financial
2-15     need.
2-16           Sec. 56.354.  ELIGIBLE PERSON.  (a)  To be eligible initially
2-17     for a rising star scholarship, a person must:
2-18                 (1)  be a resident of this state as determined by
2-19     coordinating board rules;
2-20                 (2)  have graduated from a public high school in this
2-21     state or from a private high school in this state accredited by an
2-22     organization recognized for that purpose by the coordinating board
2-23     with an overall grade point average of at least 2.0 on a four-point
2-24     scale or the equivalent;
2-25                 (3)  meet financial need requirements as determined by
2-26     the governing board of the eligible institution;
2-27                 (4)  be enrolled in a degree or certificate program at
 3-1     an eligible institution;
 3-2                 (5)  enroll for at least one-half of a full course load
 3-3     as an entering freshman in a degree or certificate program; and
 3-4                 (6)  comply with any other requirement adopted by the
 3-5     governing board of the eligible institution.
 3-6           (b)  A person is not eligible to receive a rising star
 3-7     scholarship if the person has been granted a baccalaureate degree. 
 3-8           (c)  A person may not receive a rising star scholarship for
 3-9     more than 75 semester credit hours or the equivalent.
3-10           Sec. 56.355.  ACADEMIC PERFORMANCE REQUIREMENTS.  (a)  After
3-11     initially qualifying for a rising star scholarship, a person may
3-12     receive a rising star scholarship during a subsequent academic year
3-13     in which the person is enrolled at an eligible institution only if
3-14     the person makes satisfactory academic progress toward a degree or
3-15     certificate as determined by the governing board of the eligible
3-16     institution.
3-17           (b)  If a person fails to meet the requirements of Subsection
3-18     (a)  after the completion of any academic year, the person may not
3-19     receive a scholarship under this subchapter during the next
3-20     semester or term in which the person enrolls.  A person may become
3-21     eligible to receive a scholarship in a subsequent semester or term
3-22     if the person:
3-23                 (1)  completes a semester or term during which the
3-24     student is not eligible for a scholarship; and
3-25                 (2)  meets the requirements of Subsection (a).
3-26           Sec. 56.356.  SCHOLARSHIP PERIOD AND USE.  (a)  A rising star
3-27     scholarship is awarded to an eligible person for an academic year,
 4-1     except that, for a person who regains eligibility for a scholarship
 4-2     under Section 56.355(b) after the beginning of an academic year,
 4-3     the coordinating board may grant the person a scholarship for the
 4-4     remainder of the academic year.
 4-5           (b)  A person receiving a rising star scholarship may use the
 4-6     money for any usual and customary education-related expense
 4-7     incurred by the person, including payment of the person's tuition
 4-8     and fees, books, room and board, and transportation.
 4-9           (c)  The coordinating board or an eligible institution may
4-10     not require a person to use the money to pay tuition and fees.
4-11           Sec. 56.357.  SCHOLARSHIP AMOUNT.  (a)  The amount of a
4-12     rising star scholarship is determined by the coordinating board.
4-13           (b)  The amount of a rising star scholarship may be reduced
4-14     by any gift aid the person receives from another source.
4-15           Sec. 56.358.  FUNDING.  (a)  The Texas Rising Star
4-16     Scholarship Program is funded by a combination of state and local
4-17     funds as provided by this section.
4-18           (b)  The coordinating board may solicit and accept gifts,
4-19     grants, and donations from any public or private source to provide
4-20     state funds for the program in addition to any other state funds
4-21     appropriated for the program.
4-22           (c)  An eligible institution may solicit and accept gifts,
4-23     grants, and donations from any public or private source to provide
4-24     rising star scholarships for its students and may use any other
4-25     available funds of the institution for that purpose.
4-26           (d)  In the manner prescribed by the coordinating board, the
4-27     governing board of an eligible institution may apply to participate
 5-1     in the Texas Rising Star Scholarship Program for a state fiscal
 5-2     year.  In its application, the governing board shall state the
 5-3     total amount of funds from gifts, grants, and donations the
 5-4     institution will use to provide rising star scholarships to its
 5-5     students in that fiscal year.  From the state funds appropriated to
 5-6     the program for that fiscal year, the coordinating board shall set
 5-7     aside for scholarships at each eligible institution an amount equal
 5-8     to one-half of the amount that the institution will use to provide
 5-9     rising star scholarships in that fiscal year from gifts, grants,
5-10     and donations.  If the amount of state funds appropriated to the
5-11     program for that fiscal year is insufficient to provide each
5-12     eligible institution applying to participate in the program the
5-13     full amount of matching state funds, the coordinating board shall
5-14     set aside for each eligible institution a share of the available
5-15     state funds in proportion to the amount the institution indicates
5-16     it will use to provide rising star scholarships in that fiscal year
5-17     from gifts, grants, and donations.
5-18           (e)  State funds set aside for scholarships at an eligible
5-19     institution under this section for a fiscal year may be used to
5-20     provide those scholarships only to the extent the institution
5-21     provides at least twice that amount for rising star scholarships in
5-22     the same fiscal year from gifts, grants, and donations.  The
5-23     coordinating board shall establish procedures for the
5-24     administration of this section, including procedures to ensure that
5-25     state funds appropriated for the program are used exclusively to
5-26     provide rising star scholarships in accordance with this
5-27     subchapter.
 6-1           SECTION 2.  (a)  This Act applies beginning with the
 6-2     2002-2003 state fiscal year.
 6-3           (b)  The Texas Higher Education Coordinating Board shall
 6-4     establish procedures for the administration of Subchapter N,
 6-5     Chapter 56, Education Code, as added by this Act, not later than
 6-6     January 1, 2002.
 6-7           (c)  This Act does not make an appropriation.  The Texas
 6-8     Higher Education Coordinating Board is not required to award
 6-9     scholarships under the Texas Rising Star Scholarship Program
6-10     established by Subchapter N, Chapter 56, Education Code, as added
6-11     by this Act, that are funded by state money unless state money is
6-12     specifically appropriated for that purpose.
6-13           SECTION 3.  This Act takes effect immediately if it receives
6-14     a vote of two-thirds of all the members elected to each house, as
6-15     provided by Section 39, Article III, Texas Constitution.  If this
6-16     Act does not receive the vote necessary for immediate effect, this
6-17     Act takes effect September 1, 2001.