HBA-MPM C.S.H.B. 2867 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2867 By: Dunnam Higher Education 4/5/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Some of Texas' brightest high school students are choosing to attend out-of-state colleges and universities. A reason for this exodus may be Texas' inability to compete with the kinds of substantive scholarships, grants, and fellowships offered by institutions of higher education in other states. C.S.H.B. 2867 authorizes public institutions of higher education in this state to offer matching nonathletic scholarships to Texas students who have received offers from out-of-state institutions. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Higher Coordinating Board in SECTION 1 (Section 61.086, Education Code). SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 61, Education Code, by adding Section 61.086, as follows: Sec. 61.086. MATCHING SCHOLARSHIPS TO RETAIN STUDENTS IN TEXAS. (a) Requires the Texas Higher Education Coordinating Board (board) to adopt rules allowing a public or private or independent institution of higher education to use any funds appropriated to the institution or that it may use for the award of scholarships or grants to match, in whole or part, any nonathletic scholarship or grant offer, including an offer of the payment of tuition, fees, room and board, or a stipend, received by a graduate of a Texas public or private high school from an out-of-state institution of higher education. (b) Prohibits the board from requiring an institution to match a scholarship or grant offer. SECTION 2. (a) Requires the board to adopt rules relating to matching scholarships as provided by Section 61.086, Education Code, as added by this Act, no later than September 1, 1999. Requires the board to report, including certain information, on the initial implementation of this Act no later than December 31, 2000. Requires the board to deliver the report to the presiding officer of the standing committee on higher education in each house of the legislature. SECTION 3.Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2867 modifies SECTION 1 of the original bill in proposed Section 61.086(a) to authorize the Texas Higher Education Coordinating Board (board) to adopt rules allowing a "public or private or independent" institution of higher education (rather than an "institution of higher education") to use funds appropriated to it for the award of scholarships and grants described in this section. Deletes proposed text from proposed Section 61.086(b) in the original bill authorizing the board to encourage private or independent institutions of higher education to direct available scholarship funds to match scholarship or grant offers by out-of-state institutions described under this section and to give preference in awarding tuition equalization grants under Subchapter F (Tuition Equalization Grants) to students receiving a scholarship or grant offer from an out-of-state institution. Proposed Subsection (a) in the original bill is redesignated to Subsection (b) in the substitute.