S.B. No. 1417

	AN ACT
	relating to the student endowment scholarship and internship
	program fund at Texas A&M University--Corpus Christi.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter E, Chapter 54, Education Code, is
	amended by adding Section 54.5395 to read as follows:
	Sec. 54.5395.  STUDENT ENDOWMENT FUND FEE; TEXAS A&M
	UNIVERSITY--CORPUS CHRISTI.  (a)  The board of regents of The Texas
	A&M University System may impose a student endowment fund fee on
	each student enrolled at Texas A&M University--Corpus Christi. The
	fee may not be imposed unless approved by a majority vote of the
	students participating in a general student election held at the
	university under Section 56.243.
	(b)  The amount of the fee may not exceed $1 per semester
	credit hour for each regular semester or summer session, unless the
	amount is increased as provided by Subsection (c).
	(c)  The amount of the fee may not be increased by more than
	10 percent unless the increase has been approved by a majority vote
	of the students enrolled at the university who participate in a
	general student election called for that purpose.
	(d)  A fee imposed under this section must be used to
	establish a student endowment fund under Section 56.247.
	(e)  A fee imposed under this section is in addition to any
	other fee authorized by law and may not be considered in determining
	the maximum amount of student services fees that may be imposed
	under Section 54.503(b).
	SECTION 2.  Section 56.243, Education Code, is amended to
	read as follows:
	Sec. 56.243.  ELECTION TO PARTICIPATE.  A [Not later than
	September 1, 2004, a] general academic teaching institution may
	elect to participate in the Student Endowment Scholarship and
	Internship Program. For the institution to make the election, the
	student government of the institution must determine by official
	action that the program would benefit the institution. If the
	student government determines that the program would benefit the
	institution, in a general election called for that purpose a
	majority of the students of the institution voting in the election
	must approve an additional fee and the potential matching grant
	from the state. If the majority approves the additional fee and
	potential matching grant from the state, the governing board of the
	institution shall impose and decide the structure of the additional
	fee.
	SECTION 3.  Section 56.246, Education Code, is amended to
	read as follows:
	Sec. 56.246.  AMOUNT OF SCHOLARSHIP OR INTERNSHIP FUNDING.
	(a)  [During the five-year period during which the institution may
	receive state matching funds, the amount of student endowment
	scholarship funding for an internship may not exceed $500 per
	semester or summer session.
	[(b)]  The amount of a student endowment scholarship may not
	exceed the amount of tuition and required fees that a student would
	be charged by the institution.
	(b) [(c)]  The amount of student endowment internship
	funding may not exceed the amount of tuition and required fees that
	a student would be charged by the institution during the student's
	period of internship.
	(c) [(d)]  On receipt of a scholarship or internship funding
	under this subchapter, a student must comply with any applicable
	conditions of the scholarship or internship funding.
	SECTION 4.  Subsections (a) and (c), Section 56.247,
	Education Code, are amended to read as follows:
	(a)  Each institution shall establish a student endowment
	fund consisting of the revenue from the additional student fee[,
	the state matching funds appropriated for the purpose,] and the
	interest and other income from investment of the fund. The fund
	shall be invested by the governing board in accordance with the
	policies governing investment of other funds held and invested by
	the board on behalf of the institution.
	(c)  Scholarships and internships may be paid from both the
	income and the principal of the fund, except that after the first
	five-year period after the date the fund is established, [during
	which state matching funds are payable, for any year] not more than
	five percent of the principal of the fund may be expended for
	scholarships and internships for any year.
	SECTION 5.  This Act applies beginning with the 2007 fall
	semester.
	SECTION 6.  This Act takes effect September 1, 2007.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1417 passed the Senate on
	April 26, 2007, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1417 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