SRC-JEC S.B. 1007 78(R)BILL ANALYSIS Senate Research CenterS.B. 1007 By: West Subcommittee on Higher Education 6/26/2003 Enrolled DIGEST AND PURPOSE Currently, the TEXAS Grant program determines eligibility based on a student's final high school transcript. However, most students have already determined where and how to go to college by the time they actually graduate from high school, thereby missing the opportunity to make a fully informed decision about where to go to college in the event the student earns or could earn a TEXAS Grant. S.B. 1007 makes it possible for institutions to base their TEXAS Grant awards on a student's seventh semester transcript. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter M, Chapter 56, Education Code, by adding Section 56.3041, as follows: Sec. 56.3041. INITIAL ELIGIBILITY OF PERSON ON TRACK TO COMPLETE RECOMMENDED OR ADVANCED CURRICULUM. (a) Provides that, if at the time an eligible institution awards TEXAS grants to initial recipients for an academic year an applicant has not completed high school or the applicant's final high school transcript is not yet available to the institution, the student is considered to have satisfied the requirements of Section 56.304(a)(2)(A) if the student's available high school transcript indicates that at the time the transcript was prepared the student was on schedule to graduate from high school and to complete the recommended or advanced high school curriculum or its equivalent, as applicable to the student, in time to be eligible for a TEXAS grant for the academic year. (b) Authorizes the Texas Higher Education Coordinating Board (THECB) or the eligible institution to require the student to forgo or repay the amount of an initial TEXAS grant awarded to the student as described by Subsection (a) if the student fails to complete the recommended or advanced high school curriculum or its equivalent after the issuance of the available high school transcript. (c) Authorizes a person who is required to forgo or repay the amount of an initial TEXAS grant under Subsection (b) to become eligible to receive an initial TEXAS grant under Section 56.304 by satisfying the associate degree requirement prescribed by Section 56.304(a)(2)(B) and the other applicable requirements of that section at the time the person reapplies for the grant. (d) Authorizes a person who receives an initial TEXAS grant under Subsection (a) and is not required to forgo or repay the amount of the grant under Subsection (b) to become eligible to receive a subsequent TEXAS grant under Section 56.305 only by satisfying the associate degree requirement prescribed by Section 56.304(a)(2)(B) in addition to the requirements of Section 56.305 at the time the person applies for the subsequent grant. SECTION 2. Amends Section 56.305(g), Education Code, as added by Chapter 1590, Acts of the 76th Legislature, Regular Session, 1999, to require THECB to adopt rules to allow a person who is otherwise eligible to receive a TEXAS grant, in the event of a hardship or for other good cause shown, to receive a TEXAS grant if the student's grade point average or completion rate falls below the satisfactory academic progress requirements of Subsection (e). Deletes text prohibiting THECB from allowing a person to receive a TEXAS grant while enrolled in fewer than six semester credit hours. SECTION 3. Amends Sections 56.307(f), (h), and (j), Education Code, as follows: (f) Prohibits the amount of a TEXAS grant from being reduced by any gift aid for which the person receiving the grant is eligible, unless the total amount of a person's grant plus any gift aid received exceeds the student's financial need, rather than the total cost of attendance at an eligible institution. (h) Prohibits the total amount of grants that a student may receive in an academic year under this subchapter and under Section 61.221 from exceeding the total amount of tuition and required fees charged to the student for the academic periods for which one or more of the grants were awarded, rather than the maximum amount authorized under Section 61.227. (j) Deletes a reference to a Pell grant. SECTION 4. (a) Provides that the change in law made by this Act relating to the eligibility of a person to receive a TEXAS grant applies beginning with students who demonstrate eligibility to receive a grant for the 2003-2004 academic year, to the extent TEXAS grants are awarded for that academic year after the effective date of this Act. (b) Makes the change in law made by this Act to Section 56.307, Education Code, applicable beginning with the 2003-2004 academic year. SECTION 5. Effective date: upon passage or September 1, 2003.