BILL ANALYSIS

C.S.H.B. 3577

By: Howard

Higher Education

Committee Report (Substituted)

BACKGROUND AND PURPOSE

According to interested parties, the Texas Higher Education Coordinating Board's recent sunset bill restructured financial aid programs for two-year colleges. The parties report that the methodology used to allocate Texas Educational Opportunity Grant funding as part of the restructuring resulted in less funding for certain state technical colleges than previously received. The coordinating board attempted negotiated rulemaking between community colleges and two-year colleges to correct this unintended consequence but was unable to reach consensus. Interested parties assert the unintended consequence should be corrected and the applicable funding returned to its previous level. C.S.H.B. 3577 seeks to address this issue.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 3577 amends the Education Code to add a temporary provision, set to expire
August 31, 2018, requiring the Texas Higher Education Coordinating Board, from money appropriated by the legislature for the purposes of the Texas Educational Opportunity Grant Program, to annually consult representatives from public community colleges, public state colleges, and public technical institutes to determine and reach unanimous consensus on the allocation of money available for initial grants among eligible institutions and to distribute accordingly. The bill requires the coordinating board, if unanimous consensus cannot be reached among the representatives, to establish the amount of funds eligible for public state colleges and public technical institutes as eight percent of the total amount appropriated.

EFFECTIVE DATE

September 1, 2015.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 3577 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.

INTRODUCED	HOUSE COMMITTEE SUBSTITUTE
SECTION 1. Section 56.403, Education Code, is amended to read as follows: (e) From money appropriated by the Legislature for the purposes of this subchapter, the coordinating board annually shall determine the allocation of money available for initial grants among eligible institutions and shall distribute accordingly. (e-1) In allocating among eligible institutions money available for initial grants for an academic year, the coordinating board shall establish the amount of funds eligible for the public state colleges and public technical institutes as eight percent of the total amount appropriated.	SECTION 1. Section 56.403, Education Code, is amended to read as follows: (e) From money appropriated by the Legislature for the purposes of this subchapter, the coordinating board annually shall consult representatives from public community colleges, public state colleges and public technical institutes to determine and reach unanimous consensus on the allocation of money available for initial grants among eligible institutions and shall distribute accordingly. If unanimous consensus cannot be reached among the representatives, (e-1) In allocating among eligible institutions money available for initial grants for an academic year, the coordinating board shall establish the amount of funds eligible for the public state colleges and public technical institutes as eight percent of the total amount appropriated. This subsection expires August 31, 2018.
SECTION 2. This Act takes effect September 1, 2015.	SECTION 2. Same as introduced version.