By:  West                                                         S.B. No. 1007


A BILL TO BE ENTITLED

AN ACT

relating to student eligibility for a TEXAS grant.                            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter M, Chapter 56, Education Code, as 
added by Chapter 1590, Acts of the 76th Legislature, Regular 
Session, 1999, is amended by adding Section 56.3041 to read as 
follows:
	Sec. 56.3041.  INITIAL ELIGIBILITY OF PERSON ON TRACK TO 
COMPLETE RECOMMENDED OR ADVANCED CURRICULUM.  (a)  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)  The coordinating board or the eligible institution may 
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)  A person who is required to forgo or repay the amount of 
an initial TEXAS grant under Subsection (b) may 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)  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) may 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.  Subsection (g), Section 56.305, Education Code, 
as added by Chapter 1590, Acts of the 76th Legislature, Regular 
Session, 1999, is amended to read as follows:
	(g)  The coordinating board shall 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, including a 
showing of a severe illness or other debilitating condition that 
may affect the person's academic performance or that the person is 
responsible for the care of a sick, injured, or needy person and 
that the person's provision of care may affect the person's academic 
performance, to receive a TEXAS grant:
		(1)  while enrolled in a number of semester credit 
hours that is less than the number of semester credit hours required 
under Subsection (a)(3); or
		(2)  if the student's grade point average or completion 
rate falls below the satisfactory academic progress requirements of 
Subsection (e).  [The coordinating board may not allow a person to 
receive a TEXAS grant while enrolled in fewer than six semester 
credit hours.]
	SECTION 3.  Subsection (f), Section 56.307, Education Code, 
as added by Chapter 1590, Acts of the 76th Legislature, Regular 
Session, 1999, is amended to read as follows:
	(f)  The amount of a TEXAS grant may not be 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 [total cost of 
attendance at an eligible institution].
	SECTION 4.  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 5.  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.