S.B. 1007 78(R)    BILL ANALYSIS


S.B. 1007
By: West
Higher Education
Committee Report (Amended)



BACKGROUND 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

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

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 forthe
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
reappliesfor 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.  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.  

SECTION 3.  Effective date:  upon passage or September 1, 2003.


EFFECTIVE DATE

This Act takes effect immediately if it receives a vote of two-thirds of
all the members elected to each house, as provided by Section 39, Article
III, Texas Constitution.  If this Act does not receive the vote necessary
for immediate effect, this Act takes effect September 1, 2003. 

EXPLANATION OF AMENDMENT

Provides that an institution may use other available sources of financial
aid, other than a loan, to cover any difference in the amount of a TEXAS
grant an the actual amount of tuition and required fees at the
institution.