By: Zaffirini S.B. No. 1668 (In the Senate - Filed March 8, 2013; March 25, 2013, read first time and referred to Committee on Higher Education; April 15, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 6, Nays 0; April 15, 2013, sent to printer.) COMMITTEE SUBSTITUTE FOR S.B. No. 1668 By: Zaffirini A BILL TO BE ENTITLED AN ACT relating to the institutions of higher education eligible to participate in the Texas Science, Technology, Engineering, and Mathematics (T-STEM) Challenge Scholarship program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 61.9792, Education Code, is amended to read as follows: Sec. 61.9792. SCHOLARSHIP PROGRAM. The board shall establish and administer, in accordance with this subchapter and board rules, the Texas Science, Technology, Engineering, and Mathematics (T-STEM) Challenge Scholarship program under which the board provides a grant to an eligible institution for the purpose of providing a scholarship to a student who meets the eligibility criteria prescribed by Section 61.9793. SECTION 2. Section 61.9794, Education Code, is amended to read as follows: Sec. 61.9794. ELIGIBLE INSTITUTION. (a) To qualify as an eligible institution under this subchapter, an institution must: (1) be one of the following: (A) a public junior college, public junior college district, or public technical institute that admits[; [(2) admit] at least 50 students into a STEM program each academic year; or (B) a general academic teaching institution that admits into a STEM program each academic year eligible students who: (i) previously participated in a T-STEM Challenge Scholarship program at a public junior college or public technical institute; and (ii) completed at least 45 semester credit hours at the college or institute before enrolling in the general academic teaching institution; and (2) [(3)] develop partnerships with business and industry to: (A) identify local employment needs in Science, Technology, Engineering, and Mathematics (STEM) fields; and (B) provide part-time employment for students enrolled in a STEM program. (b) To maintain eligibility, beginning with the second year following implementation of a scholarship program under this subchapter, an institution must demonstrate to the board that at least 70 percent of the institution's T-STEM Challenge Scholarship graduates, within three months after graduation, are: (1) employed by a business in a Science, Technology, Engineering, and Mathematics (STEM) field; or (2) enrolled in upper-division courses leading to a baccalaureate degree in a Science, Technology, Engineering, and Mathematics (STEM) field. SECTION 3. Section 61.9795, Education Code, is amended to read as follows: Sec. 61.9795. AMOUNT; FUNDING. (a) Subject to available funding, the board shall award a grant to an eligible institution for the purpose of providing scholarships, with at least 50 percent of the amount awarded from private funds. (b) Except as provided by Subsection (b-1), an [An] eligible student may receive a scholarship awarded under this subchapter for not more than two academic years. (b-1) A student who previously participated in the T-STEM Challenge Scholarship program at a public junior college or public technical institute and completed at least 45 semester credit hours at the college or institute, who then enrolls in a general academic teaching institution, may receive a scholarship awarded under this subchapter for two additional academic years. The student must meet the eligibility requirements established pursuant to Section 61.9793. (c) The board may use any available revenue, including legislative appropriations, and may solicit and accept gifts and grants for purposes of this subchapter. SECTION 4. The Texas Higher Education Coordinating Board shall award scholarships under Subchapter GG, Chapter 61, Education Code, as amended by this Act, beginning with the 2013-2014 academic year. The coordinating board shall adopt the rules required by that subchapter as soon as practicable after this Act takes effect. SECTION 5. This Act takes effect September 1, 2013. * * * * *