SRC-JLB S.B. 465 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 465
78R1543 JRJ-DBy: Lucio
Education
2/24/2003
As Filed


DIGEST AND PURPOSE 

Currently, students who graduate from high school within 36 months (3
years) 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, S.B. 465 improves the benefits as an incentive for graduates
to take advantage of the current program. 
 
RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Higher Education
Coordinating Board in SECTION 2 (Section 56.203, Education Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 56.202, Education Code, as follows:
 
Sec. 56.202.  PURPOSE.  (a) Amends the purpose of the Early High School
Graduation Scholarship (EHSGS) program to provide assistance for mandatory
fees in addition to the tuition assistance previously provided to an
eligible person to enable that person to attend a Texas public or private
institution of higher education. 
 
(b)  Provides that a portion of the savings to the Foundation School
Program that occur as a result of the program is dedicated to state
credits for tuition and mandatory fees provided to an eligible person
under the program. 
 
SECTION 2.  Amends Section 56.203, Education Code, as follows:
 
Sec. 56.203.  ELIGIBLE PERSON.  (a) Requires a person, to be eligible for
EHSGS, to meet certain criteria.  Creates this subsection from existing
text. 

(b)  Provides that a person's eligibility for the EHSGS 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 to participate in the program under Subsection (c). 
 
 (c)  Requires the Texas Higher Education Coordinating Board (THECB) to
adopt rules to provide a person who is otherwise eligible to participate
in the EHSGS  program  additional time to use a state credit for tuition
and mandatory fees under the program.  Requires the rules to require a
person seeking an extension under this subsection to show hardship or
other good cause that prevents the person from enrolling in or continuing
enrollment in an eligible institution during the period provided by
Subsection (b).  Provides that hardship or other good cause  includes a
severe illness or other debilitating condition or responsibility for the
care of a sick, injured, or needy person. 

SECTION 3.  Amends Section 56.204, Education Code, as follows:
 
Sec. 56.204.  ENTITLEMENT; MATCHING CREDIT.  (a)  Provides that an
eligible person under EHSGS is entitled to a state credit to pay tuition
and mandatory fees at a public or private institution of higher education
in this state according to certain proscribed amounts. 

(b)  Provides that the use of a credit at a private institution, rather
than a Texas private institution, is contingent on a private institution's
agreement to match the state credit. 
 
  (c) No change to this Subsection.

SECTION 4.  Amends Section 56.205, Education Code, to make conforming
changes. 
 
SECTION 5.  Amends Section 56.206, Education Code, as follows:
 
Sec. 56.206.  New heading:  USE OF STATE CREDIT.  (a) Makes conforming
changes. 

(b) Makes conforming changes.
 
(c) Makes conforming changes.
 
(d)  Authorizes an eligible person, subject to Section 56.203(b), to use
the state credit for enrollment in an eligible institution of higher
education during any semester or summer session, except that 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. 

SECTION 6.  Amends the heading to Section 56.207, Education Code, to read
as follows: 
 
 Sec. 56.207.  PAYMENT OF STATE CREDIT.
 
SECTION 7.  Amends Sections 56.207(a) and (b), Education Code, to make
conforming changes. 

SECTION 8.  Amends Chapter 56K, Education Code, by adding Section 56.2075,
as follows: 
 
Sec. 56.2075.  PAYMENT OF SCHOOL DISTRICT CREDIT.  (a) 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). 
 
(b)  Requires the commissioner of education to distribute money from the
foundation school fund in an amount sufficient to pay each school district
under Subsection (a). 

SECTION 9.  Amends Section 54.213(b), Education Code, to make conforming
changes. 
 
SECTION 10.  (a) Makes application of this Act prospective.
   (b) Effective date: September 1, 2003.