78R4456 JRJ-D

By:  Wise                                                         H.B. No. 1761



A BILL TO BE ENTITLED

AN ACT

relating to administration of and eligibility for TEXAS grants and 
TEXAS grants II.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 56.305(e), Education Code, is amended to 
read as follows:
	(e)  For the purpose of this section, a person makes 
satisfactory academic progress toward an undergraduate degree or 
certificate [only] if[:
		[(1)  in the person's first academic year] the person 
meets the satisfactory academic progress requirements to qualify 
for federal student financial aid at [of] the institution in [at] 
which the person is enrolled [; and
		[(2)  in a subsequent academic year, the person:             
			[(A)  completes at least 75 percent of the 
semester credit hours attempted in the student's most recent 
academic year; and
			[(B)  earns an overall grade point average of at 
least 2.5 on a four-point scale or the equivalent on coursework 
previously attempted at institutions of higher education].
	SECTION 2.  Sections 56.307(h) and (j), Education Code, are 
amended to read as follows:
	(h)  The [total] amount of a grant [grants] that a student 
may receive in an academic year under this subchapter is in addition 
to any grant received [and] under Section 61.221 so long as the 
amount received does [may] not exceed the demonstrated financial 
need of the student [maximum amount authorized under Section 
61.227].
	(j)  An institution may use other available sources of 
financial aid[, other than a loan or a Pell grant,] to cover any 
difference in the amount of a TEXAS grant and the actual amount of 
tuition and required fees at the institution.
	SECTION 3.  Section 56.355(d), Education Code, as added by 
Chapter 624, Acts of the 77th Legislature, Regular Session, 2001, 
is amended to read as follows:
	(d)  For the purpose of this section, a person makes 
satisfactory academic progress toward an associate degree or 
certificate [only] if the person meets the satisfactory academic 
progress requirements to qualify for federal student financial aid 
at the institution in which the person is enrolled [:
		[(1)  completes at least 75 percent of the semester 
credit hours attempted in the student's most recent academic year; 
and
		[(2)  earns an overall grade point average of at least 
2.5 on a four-point scale or the equivalent on course work 
previously attempted at institutions of higher education].
	SECTION 4.  Sections 56.357(e) and (g), Education Code, as 
added by Chapter 624, Acts of the 77th Legislature, Regular 
Session, 2001, are amended to read as follows:
	(e)  The [total] amount of a grant [grants] that a student 
may receive in an academic year under this subchapter is in addition 
to any grant received [and] under Section 61.221 so long as the 
amount received does [may] not exceed the demonstrated financial 
need of the student [maximum amount authorized under Section 
61.227].
	(g)  An institution may use other available sources of 
financial aid[, other than a loan or a Pell grant,] to cover any 
difference in the amount of a TEXAS grant II and the actual amount 
of tuition and required fees at the institution.
	SECTION 5.  (a)  The change in law made by this Act relating 
to the eligibility of a person to receive a TEXAS grant or TEXAS 
grant II applies beginning with students who demonstrate 
eligibility to receive a grant for the 2003-2004 academic year, to 
the extent TEXAS grants or TEXAS grants II are awarded for that 
academic year after the effective date of this Act.
	(b)  The Texas Higher Education Coordinating Board shall 
implement the other changes made by this Act to the TEXAS grant or 
TEXAS grant II program as soon as practicable after the effective 
date of this Act but not later than the 2004-2005 academic year.  If 
the coordinating board determines it necessary, before January 1, 
2004, the coordinating board may adopt rules to implement a change 
in law made by this Act in the manner provided by law for emergency 
rules.
	SECTION 6.  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.