H.B. No. 3452 AN ACT relating to the establishment of the Texas Armed Services Scholarship. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 61, Education Code, is amended by adding Subchapter FF to read as follows: SUBCHAPTER FF. TEXAS ARMED SERVICES SCHOLARSHIP PROGRAM Sec. 61.9771. SCHOLARSHIP PROGRAM; SCHOLARSHIP AMOUNT. (a) The board shall establish and administer, in accordance with this subchapter and board rules, the Texas Armed Services Scholarship Program under which the board provides an annual conditional scholarship to a student who meets the eligibility criteria prescribed by Section 61.9772 and is appointed to receive a scholarship. (b) The amount of a scholarship under this subchapter in an academic year is the lesser of: (1) $15,000; or (2) the amount available for each scholarship from appropriations that may be used for scholarships under this subchapter for that academic year. Sec. 61.9772. ELIGIBILITY; NOMINATION AND SELECTION. (a) To receive an initial scholarship under this subchapter, a student must: (1) be enrolled as a freshman in a public or private institution of higher education in this state; (2) enroll in and be a member in good standing of a Reserve Officers' Training Corps (ROTC) program while enrolled in a public or private institution of higher education in this state; (3) be appointed to receive a scholarship by the governor, the lieutenant governor, a state senator, or a state representative; and (4) enter into an agreement with the board under Section 61.9773. (b) In each year, the governor and the lieutenant governor may each appoint two students and each state senator and each state representative may appoint one student to receive an initial scholarship under this subchapter. (c) For a student to continue to receive a scholarship awarded under this subchapter, the student must maintain satisfactory academic progress as determined by the institution in which the student is enrolled. Sec. 61.9773. AGREEMENT REQUIREMENTS. (a) To receive a scholarship under this subchapter, a student must enter into an agreement with the board as provided by this section. The agreement must require the student to: (1) complete four years of ROTC training; (2) graduate not later than five years after the date the student first enrolls in a public or private institution of higher education in this state; (3) after graduation, enter into: (A) a four-year commitment to be a member of the Texas Army or Air Force National Guard; or (B) a contract to serve as a commissioned officer in any branch of the armed services of the United States; (4) meet the physical examination requirements and all other prescreening requirements of the Texas Army or Air Force National Guard or the branch of the armed services with which the student enters into a contract; and (5) agree to repay the scholarship if the student: (A) fails to maintain satisfactory academic progress; (B) withdraws from the scholarship program; or (C) fails to fulfill a commitment or contract described by Subdivision (3). (b) The board shall adopt rules to exempt a student from the repayment of a scholarship under an agreement entered into under this section if the student is unable to meet the obligations of the agreement solely as a result of physical inability. Sec. 61.9774. RULES. (a) The board shall adopt rules as necessary for the administration of this subchapter, including rules regarding the eligibility criteria and the selection of scholarship recipients. (b) The board by rule shall provide that any amount paid to a student by a branch of the armed services of the United States during an academic year for which the student receives a scholarship under this subchapter because the student is under a contract with that branch shall be deducted from the amount of the scholarship awarded to the student for that academic year. Sec. 61.9775. LIMITATION ON SCHOLARSHIP. A person may not receive a scholarship under this subchapter after earning a cumulative total of 150 credit hours or after being awarded a baccalaureate degree, whichever occurs first. Sec. 61.9776. FUNDING. The board shall administer this subchapter using available appropriations and gifts, grants, and donations made for the purposes of this subchapter. SECTION 2. The Texas Higher Education Coordinating Board shall award scholarships under Subchapter FF, Chapter 61, Education Code, as added by this Act, beginning with the 2010-2011 academic year. The coordinating board shall adopt the rules required by that subchapter as soon as practicable after this Act takes effect. SECTION 3. This Act does not make an appropriation. A provision in this Act that creates a new governmental program, creates a new entitlement, or imposes a new duty on a governmental entity is not mandatory during a fiscal period for which the legislature has not made a specific appropriation to implement the provision. SECTION 4. This Act takes effect September 1, 2009. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3452 was passed by the House on May 13, 2009, by the following vote: Yeas 145, Nays 1, 1 present, not voting; that the House refused to concur in Senate amendments to H.B. No. 3452 on May 29, 2009, and requested the appointment of a conference committee to consider the differences between the two houses; and that the House adopted the conference committee report on H.B. No. 3452 on May 31, 2009, by the following vote: Yeas 145, Nays 0, 1 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 3452 was passed by the Senate, with amendments, on May 23, 2009, by the following vote: Yeas 31, Nays 0; at the request of the House, the Senate appointed a conference committee to consider the differences between the two houses; and that the Senate adopted the conference committee report on H.B. No. 3452 on May 31, 2009, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate APPROVED: __________________ Date __________________ Governor