This report results from the 1996 U.S. Supreme Court decision, Hopwood v. Texas, which declared that race may not be taken into account for the purpose of creating a diverse student body. The report offers recommendations to Texas policymakers and educators concerning creative approaches to encourage more representative student bodies in light of this decision. Short-term and long-term recommendations are made for programs and strategies in three areas: recruitment and admissions, retention, and financial aid. Discussion of the issues and effective strategies in each of these areas is followed by presentation of ten major recommendations, including the following: (1) creation of a fund for supplementary financing of recruitment programs; (2) creation of incentives for two-year students to earn an associate degree or transfer to a four-year college; (3) increases in state financial aid funding; (4) expansion of current work-study programs; (5) expansion of partnerships between the state and private sectors; and (6) increased support to improve retention of full-time higher education professional faculty. Also included are profiles of commission members and two appendices, one an executive summary of another financial aid report and, the second, a matrix of Texas recognition and equal access programs. (Contains 24 references.) (DB)