LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 7, 2001
  
  
          TO:  Honorable Irma Rangel, Chair, House Committee on Higher
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB140  by Wise (Relating to reimbursing veterans for the
               cost of required textbooks and similar required course
               materials.), Committee Report 1st House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB140, Committee Report 1st House, Substituted:  negative impact      *
*  of $(1,388,800) through the biennium ending August 31, 2003.          *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(694,400)  *
          *       2003                            (694,400)  *
          *       2004                            (694,400)  *
          *       2005                            (694,400)  *
          *       2006                            (694,400)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                               $(694,400) *
         *      2003                                (694,400) *
         *      2004                                (694,400) *
         *      2005                                (694,400) *
         *      2006                                (694,400) *
         *****************************************************
  
Fiscal Analysis
  
The bill requires higher education institutions to reimburse military
veterans who receive tuition exemptions under Section 54.203 of the
Education Code for the cost of required textbooks and materials.
Participants must be enrolled for at least 12 semester credit hours
during the semester during which the books were purchased, and the books
must be turned in to the institution for resale at the end of the
semester.
  
  
Methodology
  
This analysis assumes an effective date of September 1, 2001.

The Texas Higher Education Coordinating Board (THECB) estimates that the
number of qualified veterans annually is 9,917.  Of this amount, it is
preseumed that ten percent will participate.  The estimated average
value of books and required course materials is $700.  This translates
into a general revenue cost of $694,400 (992 veterans participating X
$700 annual average book cost per veteran).
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   781   Texas Higher Education Coordinating Board
LBB Staff:         JK, CT, KC