Amend CSHB 1172 by adding the following appropriately 
numbered SECTIONs to the bill and renumbering subsequent SECTIONs 
of the bill accordingly:
	SECTION __.  Section 56.076, Education Code, is amended to 
read as follows:  
	Sec. 56.076.  ELIGIBLE EMPLOYER.  An eligible institution 
may enter into agreements with employers that participate in the 
work-study program.  To be eligible to participate in the 
work-study program, an employer must:
		(1)  provide part-time employment to an eligible 
student in nonpartisan and nonsectarian activities;
		(2)  provide, insofar as is practicable, employment to 
an eligible student that is related to the student's academic 
interests;
		(3)  use Texas college work-study program positions 
only to supplement and not to supplant positions normally filled by 
persons not eligible to participate in the work-study program;
		(4)  provide from sources other than federal college 
work-study program funds a percentage [not less than 30 percent] of 
an employed student's wages that is equal to the percentage of a 
student's wages that the employer would be required to provide to 
the student in that academic year under the [and 100 percent of 
other employee benefits for the employed student from sources other 
than] federal college work-study program [funds, if the employer is 
a nonprofit entity]; and
		(5)  provide from sources other than federal college 
work-study funds [not less than 50 percent of an employed student's 
wages and] 100 percent of other employee benefits for the employed 
student[, if the employer is a profit-making entity].
	SECTION __.  Subchapter E, Chapter 56, Education Code, is 
amended by adding Section 56.079 to read as follows:
	Sec. 56.079.  WORK-STUDY STUDENT MENTORSHIP PROGRAM.  
(a)  In this section, "general academic teaching institution" has 
the meaning assigned by Section 61.003.
	(b)  A general academic teaching institution may establish a 
work-study student mentorship program under which students who are 
enrolled in their junior or senior year at the institution and who 
meet the eligibility requirements for employment in the Texas 
college work-study program under Section 56.075 may be employed by 
the institution under the Texas college work-study program to 
mentor students who are on academic probation at the institution.
	(c)  A general academic teaching institution that has 
established a work-study student mentorship program under this 
section may require students who are on academic probation at the 
institution to be matched with a student mentor employed under the 
program.
	(d)  Not later than November 1 of each year, each general 
academic teaching institution that has established a work-study 
student mentorship program under this section shall submit to the 
Texas Higher Education Coordinating Board a report regarding the 
progress of the institution's program.  The report must include the 
number of students employed by the institution as mentors under the 
program in the preceding academic year and information relating to 
the costs of the program and the academic progress of the students 
receiving mentoring under the program in that year.
	(e)  Each general academic teaching institution that has 
established a work-study student mentorship program under this 
section shall set aside a portion of the institution's Texas 
college work-study program funds to pay for the state's 
contribution toward the costs of the program.
	(f)  Notwithstanding Section 56.076, a general academic 
teaching institution that employs a student mentor under the 
work-study student mentorship program shall provide from sources 
other than federal college work-study funds:
		(1)  not less than 10 percent of the employed student's 
wages; and   
		(2)  100 percent of other employee benefits for the 
employed student.
	SECTION __.  Section 56.304, Education Code, is amended by 
amending Subsection (e) and adding Subsections (e-1) and (e-2) to 
read as follows:
	(e)  If a person is initially awarded a TEXAS grant before 
the 2005 fall semester, the [A] person's eligibility for a TEXAS 
grant ends on the sixth anniversary of the initial award of a TEXAS 
grant to the person and the person's enrollment in an eligible 
institution, unless the person is provided additional time during 
which the person may receive a TEXAS grant under Subsection (e-2)
[this subsection].
	(e-1)  If a person is initially awarded a TEXAS grant during 
or after the 2005 fall semester, unless the person is provided 
additional time during which the person may receive a TEXAS grant 
under Subsection (e-2), the person's eligibility for a TEXAS grant 
ends on:
		(1)  the fifth anniversary of the initial award of a 
TEXAS grant to the person, if the person is enrolled in a degree or 
certificate program of four years or less; or
		(2)  the sixth anniversary of the initial award of a 
TEXAS grant to the person, if the person is enrolled in a degree 
program of more than four years.
	(e-2)  The coordinating board shall adopt rules to provide a 
person who is otherwise eligible to receive a TEXAS grant 
additional time during which the person may receive a TEXAS grant in 
the event of a hardship or other good cause shown that prevents the 
person from continuing the person's enrollment during the period 
the person would otherwise have been eligible to receive a TEXAS 
grant, including a showing of a severe illness or other 
debilitating condition or that the person is or was responsible for 
the care of a sick, injured, or needy person.
	SECTION __.  Section 56.305, Education Code, is amended by 
amending Subsections (e) and (g) and adding Subsection (e-1) to 
read as follows:
	(e)  For the purpose of this section, a person who is 
initially awarded a TEXAS grant before the 2005 fall semester 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 of the 
institution 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.
	(e-1)  For purposes of this section, a person who is 
initially awarded a TEXAS grant during or after the 2005 fall 
semester 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 of the 
institution at which the person is enrolled; and
		(2)  in a subsequent academic year, the person:                        
			(A)  completed at least 24 semester credit hours 
in the student's most recent academic year; and
			(B)  has earned 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.
	(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 the 
student's completion rate or number of semester credit hours 
completed, as applicable, falls below the satisfactory academic 
progress requirements of Subsection (e) or (e-1).
	SECTION __.  Subchapter M, Chapter 56, Education Code, is 
amended by adding Section 56.3071 to read as follows:
	Sec. 56.3071.  EFFECT OF ELIGIBILITY FOR TUITION 
EQUALIZATION GRANT.  (a)  Notwithstanding Section 56.307, the 
total amount of financial aid that a student enrolled in a private 
or independent institution of higher education is eligible to 
receive in a state fiscal year from TEXAS grants awarded under this 
subchapter may not exceed the maximum amount the student may 
receive in tuition equalization grants in that fiscal year as 
determined under Subchapter F, Chapter 61.
	(b)  Notwithstanding any other law, a student enrolled in a 
private or independent institution of higher education may not 
receive a TEXAS grant under this subchapter and a tuition 
equalization grant under Subchapter F, Chapter 61, for the same 
semester or other term, regardless of whether the student is 
otherwise eligible for both grants during that semester or term.  A 
student who but for this subsection would be awarded both a TEXAS 
grant and a tuition equalization grant for the same semester or 
other term is entitled to receive only the grant of the greater 
amount.
	SECTION __.  Section 56.462, Education Code, is amended to 
read as follows:  
	Sec. 56.462.  LOAN FORGIVENESS.  A student who receives a 
Texas B-On-time loan shall be forgiven the amount of the student's 
loan if the student is awarded an undergraduate certificate or 
degree at an eligible institution with a cumulative grade point 
average of at least 3.0 on a four-point scale or the equivalent:
		(1)  within:                                                                  
			(A)  four calendar years after the date the 
student initially enrolled in the institution or another eligible 
institution if:
				(i)  the institution is a four-year 
institution; and                      
				(ii)  the student is awarded a degree other 
than a degree in engineering, architecture, or any other program 
determined by the coordinating board to require more than four 
years to complete;
			(B)  five calendar years after the date the 
student initially enrolled in the institution or another eligible 
institution if:
				(i)  the institution is a four-year 
institution; and                      
				(ii)  the student is awarded a degree in 
engineering, architecture, or any other program determined by the 
coordinating board to require more than four years to complete; or
			(C)  two years after the date the student 
initially enrolled in the institution or another eligible 
institution if the institution is a public junior college or public 
technical institute; or
		(2)  with a total number of semester credit hours, 
including transfer credit hours and excluding hours earned 
exclusively by examination, hours earned for a course for which the 
student received credit toward the student's high school academic 
requirements, and hours earned for developmental coursework that an 
institution of higher education required the student to take under 
Section 51.3062 or under the former provisions of Section 51.306, 
that is not more than six hours more than the minimum number of 
semester credit hours required to complete the certificate or 
degree.
	SECTION __.  Section 61.225, Education Code, is amended to 
read as follows:  
	Sec. 61.225.  ELIGIBILITY [QUALIFICATIONS] FOR GRANT; 
PERSONS AWARDED GRANTS BEFORE 2005-2006 ACADEMIC YEAR.  (a)  This 
section applies only to a person who initially received a tuition 
equalization grant before the 2005-2006 academic year.
	(b)  To be eligible for a tuition equalization grant, a 
person must:  
		(1)  be a Texas resident as defined by the coordinating 
board and meet, at a minimum, the resident requirements defined by 
law for Texas resident tuition in fully state-supported 
institutions of higher education;
		(2)  be enrolled for at least one-half of a full course 
load conforming to an individual degree plan in an approved college 
or university;
		(3)  be required to pay more tuition than is required at 
a public college or university and be charged no less than the 
regular tuition required of all students enrolled at the 
institution;
		(4)  establish financial need in accordance with 
procedures and regulations of the coordinating board;
		(5)  not be a recipient of any form of athletic 
scholarship; and            
		(6)  have complied with other requirements adopted by 
the coordinating board under this subchapter.
	(c)  A grant to a part-time student under this section shall 
be made on a pro rata basis of a full-time equivalent.
	SECTION __.  Subchapter F, Chapter 61, Education Code, is 
amended by adding Section 61.2251 to read as follows:
	Sec. 61.2251.  ELIGIBILITY FOR GRANT; PERSONS INITIALLY 
AWARDED GRANTS DURING OR AFTER 2005-2006 ACADEMIC YEAR.  (a)  This 
section does not apply to a person who initially received a tuition 
equalization grant before the 2005-2006 academic year.
	(b)  To be eligible for a tuition equalization grant in the 
first academic year in which the person receives the grant, a person 
must:
		(1)  be a Texas resident as defined by the coordinating 
board and meet, at a minimum, the resident requirements defined by 
law for Texas resident tuition in fully state-supported 
institutions of higher education;
		(2)  be enrolled for a full course load conforming to an 
individual degree plan in an approved college or university;
		(3)  be required to pay more tuition than is required at 
a public college or university and be charged no less than the 
regular tuition required of all students enrolled at the 
institution;
		(4)  establish financial need in accordance with 
procedures and regulations of the coordinating board;
		(5)  not be a recipient of any form of athletic 
scholarship; and     
		(6)  have complied with other requirements adopted by 
the coordinating board under this subchapter.
	(c)  After qualifying for a tuition equalization grant under 
Subsection (b), a person may receive a tuition equalization grant 
in a subsequent academic year in which the person is enrolled at an 
approved institution only if the person:
		(1)  meets the requirements of Subsection (b);                         
		(2)  completed at least:                                               
			(A)  24 semester credit hours in the person's most 
recent academic year, if the person is enrolled in an undergraduate 
degree or certificate program; or
			(B)  18 semester credit hours in the person's most 
recent academic year, if the person is enrolled in a graduate or 
professional degree program; and
		(3)  has earned an overall grade point average of at 
least 2.5 on a four-point scale or the equivalent on coursework 
previously attempted at public or private institutions of higher 
education.
	(d)  Notwithstanding Subsections (b) and (c), a person's 
eligibility for a tuition equalization grant ends on:
		(1)  the fifth anniversary of the initial award of a 
tuition equalization grant to the person, if the person is enrolled 
in an undergraduate degree or certificate program of four years or 
less; or
		(2)  the sixth anniversary of the initial award of a 
tuition equalization grant to the person, if the person is enrolled 
in an undergraduate degree program of more than four years.
	(e)  The coordinating board shall adopt rules to allow a 
person who is otherwise eligible to receive a tuition equalization 
grant, in the event of a hardship or for other good cause shown, to 
receive a tuition equalization grant if the person does not:
		(1)  complete the semester credit hours required by 
Subsection (c)(2);
		(2)  maintain the grade point average required by 
Subsection (c)(3); or
		(3)  complete the person's certificate or degree 
program within the period prescribed by Subsection (d).
	SECTION __.  Section 61.227, Education Code, is amended by 
amending Subsection (c) and adding Subsection (d) to read as 
follows:
	(c)  In no event shall a tuition equalization grant paid 
pursuant to this subchapter in behalf of any student during any one 
fiscal year exceed an amount equal to 50 percent of the average 
state appropriation in the biennium preceding the biennium in which 
the grant is made for a full-time student or the equivalent at 
public senior colleges and universities, as determined by the 
board.  [A grant to a part-time student shall be made on a pro-rata 
basis of a full-time equivalent.]
	(d)  Notwithstanding any other law, a student enrolled in a 
private or independent institution of higher education may not 
receive a tuition equalization grant under this subchapter and a 
TEXAS grant under Subchapter M, Chapter 56, for the same semester or 
other term, regardless of whether the student is otherwise eligible 
for both grants during that semester or term.  A student who but for 
this subsection would be awarded both a tuition equalization grant 
and a TEXAS grant for the same semester or other term is entitled to 
receive only the grant of the greater amount.
	SECTION __.  Subsection (h), Section 56.307, Education Code, 
is repealed.    
	SECTION 11.  (a)  The change in law made by this Act to 
Subchapter M, Chapter 56, Education Code, applies beginning with 
the 2005-2006 academic year, but does not affect the amount of or 
entitlement to any grant awarded before the effective date of this 
Act.
	(b)  The changes in law made by this Act to Section 56.076, 
Education Code, apply only to an agreement entered into by an 
institution of higher education and an employer under that section 
on or after the effective date of this Act.
	(c)  The changes in law made by this Act to Section 56.462, 
Education Code, apply to a student who is awarded an undergraduate 
certificate or degree on or after the effective date of this Act, 
without regard to when the student is awarded a Texas B-On-time 
loan.
	(d)  The changes in law made by this Act by amending Sections 
61.225 and 61.227, Education Code, and by adding Section 61.2251, 
Education Code, apply beginning with tuition equalization grants 
for the 2005-2006 academic year, but only for tuition equalization 
grants awarded on or after the effective date of this Act.  A 
tuition equalization grant awarded before the effective date of 
this Act is governed by the law in effect immediately before the 
effective date, and the former law is continued in effect for that 
purpose.