By Homer                                              H.B. No. 2198
         77R7710 JSA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the eligibility of certain higher education students
 1-3     for a Texas Public Education Grant.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 56.034(b), Education Code, is amended to
 1-6     read as follows:
 1-7           (b)  Financial need shall be the only consideration in
 1-8     establishing guidelines to determine a student's eligibility for a
 1-9     grant, except that returning students who are on scholastic
1-10     probation or all students on disciplinary probation may be
1-11     considered [deemed] ineligible at the governing board's discretion.
1-12     A governing board may not include in its guidelines a provision
1-13     that restricts the eligibility of a student who is not a resident
1-14     of this state to receive a grant or that otherwise treats a student
1-15     who is not a resident of this state differently from a student who
1-16     is a resident of this state.
1-17           SECTION 2.  This Act takes effect immediately if it receives
1-18     a vote of two-thirds of all the members elected to each house, as
1-19     provided by Section 39, Article III, Texas Constitution.  If this
1-20     Act does not receive the vote necessary for immediate effect, this
1-21     Act takes effect September 1, 2001.