S.B. No. 1325
 
 
 
 
AN ACT
  relating to the eligibility of relatives of public college and
  university board members to receive certain scholarships;
  providing a criminal penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 51, Education Code, is
  amended by adding Section 51.969 to read as follows:
         Sec. 51.969.  ELIGIBILITY FOR SCHOLARSHIP; STATEMENT
  REQUIRED. (a)  In this section, "institution of higher education"
  and "university system" have the meanings assigned by Section
  61.003.
         (b)  A person is not eligible to receive a scholarship
  originating from and administered by an institution of higher
  education or university system if the person is related to a current
  member of the governing board of the institution or system, unless:
               (1)  the scholarship is granted by a private
  organization or third party not affiliated with the institution of
  higher education or university system;
               (2)  the scholarship is awarded exclusively on the
  basis of prior academic merit;
               (3)  the scholarship is an athletic scholarship; or
               (4)  the relationship is not within the third degree by
  consanguinity or the second degree by affinity, as determined under
  Subchapter B, Chapter 573, Government Code.
         (c)  A person applying for a scholarship originating from and
  administered by an institution of higher education or university
  system must file a written statement with the application
  indicating whether the person is related within the third degree by
  consanguinity or the second degree by affinity to a current member
  of the governing board of the institution or system.
         (d)  The Texas Higher Education Coordinating Board shall
  adopt rules for the administration of this section and shall
  prescribe the statement to be used under this section. The
  coordinating board shall notify each institution of higher
  education and university system of the required statement and
  applicable rules.
         (e)  A person commits an offense if the person knowingly
  files a false statement under Subsection (c).
         (f)  An offense under Subsection (e) is a Class B
  misdemeanor.
         SECTION 2.  (a)  Not later than January 1, 2008, the Texas
  Higher Education Coordinating Board shall prescribe the required
  statement and adopt the rules required by Section 51.969, Education
  Code, as added by this Act.
         (b)  Subsection (b), Section 51.969, Education Code, as
  added by this Act, applies only to a scholarship for which a
  scholarship application was filed on or after January 1, 2008. A
  scholarship for which a scholarship application was filed before
  that date is governed by the law in effect on the date the
  application was filed, and the former law is continued in effect for
  that purpose.
         (c)  Subsections (c), (e), and (f), Section 51.969,
  Education Code, as added by this Act, apply only to a scholarship
  application filed on or after January 1, 2008. A scholarship
  application filed before that date is governed by the law in effect
  on the date the application was filed, and the former law is
  continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1325 passed the Senate on
  April 16, 2007, by the following vote:  Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1325 passed the House on
  May 17, 2007, by the following vote:  Yeas 143, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor