H.B. 1882 78(R) BILL ANALYSIS H.B. 1882 By: Deshotel Higher Education Committee Report (Unamended) BACKGROUND AND PURPOSE Currently, students who graduate from high school within 36 months (3years) can receive a $1,000 tuition scholarship through the Texas Early High School Graduation Scholarship Program (program), yet few students seem to take advantage of this option. The scholarships can be used toward a public institution, or at a private institution if the private institution matches the $1,000 scholarship. The program is funded entirely by the savings generated by students who graduate early from the public school system. Approximately 4,000 early graduates per year, out of an estimated 215,000 total graduates, take advantage of this program. As proposed H.B. 1882 improves the benefits as an incentive for graduates to take advantage of the current program. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly granted to the Texas Higher Education Coordinating Board in SECTION 2 (Sec. 56.203, Education Code) of this bill. ANALYSIS HB 1882 amends the Education Code to allow a person eligible to benefit from the Early High School Graduation Scholarship Program to receive a state credit to pay tuition and mandatory fees at a public or private institution of higher education in this state. The bill provides for state credits in the following amounts: $2,000 if the person successfully completed requirements for a public high school diploma and graduated from high school in 36 consecutive months or less and an additional $1,000 if the person graduated with at least 15 hours of college credit; $500 if the person successfully completed requirements for a public high school diploma and graduated from high school in more than 36 consecutive months but not more than 41 consecutive months and an additional $1,000 if the person graduated with at least 30 hours of college credit; or $1000 if the if the person successfully completed requirements for a public high school diploma and graduated from high school in more than 41 consecutive months but not more than 45 consecutive months. The bill authorizes that the assistance provided by the Early High School Graduation Scholarship Program may be used for mandatory fees, in addition to tuition. The bill provides that in addition to existing eligibility requirements, a person must have graduated from high school in not more than 41 consecutive months or, if the person graduated with at least 30 hours of college credit, in not more than 45 consecutive months. The bill provides that an eligible person may use the state credit for enrollment in an eligible institution of higher education during any semester or summer session, except the person's initial use of the credit may not be for enrollment during any term of a summer session immediately following the person's graduation from high school. A person's eligibility for the Early High School Graduation Scholarship Program ends on the sixth anniversary of the date that the person first becomes eligible to participate in the program, unless the person is provided additional time under rules adopted by the coordinating board. The bill provides that the coordinating board shall adopt rules to provide additional time to eligible students to use state credits and who show hardship or other good cause that prevents them from enrolling in or continuing enrollment in an eligible institution during the time period provided by Subsection (b). The bill provides that a school district is entitled to a one-time credit of: $1,000 for each eligible person graduating from high school in the district who uses any part of a state credit of $2,000 or more under Section 56.204(a)(1); and $250 for each eligible person graduating from high school in the district who uses any part of a state credit of $500 or more under Section 56.204(a)(2). The bill provides that the commissioner shall distribut money from the foundation school fund in an amount sufficient to pay each eligible school district. EFFECTIVE DATE This Act takes effect September 1, 2003.