Amend CSSB 1227 by adding the following appropriately 
numbered SECTIONS to the bill and renumbering existing SECTIONS of 
the bill accordingly:
	SECTION __.  Section 56.304(a), Education Code, is amended 
to read as follows:
	(a)  To be eligible initially for a TEXAS grant, a person 
must:              
		(1)  be a resident of this state as determined by 
coordinating board rules; 
		(2)  meet either of the following academic 
requirements:                    
			(A)  be a graduate of a public or [accredited] 
private high school, including a home school, in this state who 
graduated not earlier than the 1998-1999 school year and who 
completed the recommended or advanced high school curriculum 
established under Section 28.002 or 28.025 or its equivalent; or
			(B)  have received an associate degree from an 
eligible institution not earlier than May 1, 2001;
		(3)  meet financial need requirements as defined by the 
coordinating board; 
		(4)  be enrolled in an undergraduate degree or 
certificate program at an eligible institution;
		(5)  be enrolled as:                                                          
			(A)  an entering undergraduate student for at 
least three-fourths of a full course load for an entering 
undergraduate student, as determined by the coordinating board, not 
later than the 16th month after the date of the person's graduation 
from high school; or
			(B)  an entering student for at least 
three-fourths of a full course load for an undergraduate student as 
determined by the coordinating board, not later than the 12th month 
after the month the person receives an associate degree from an 
eligible institution;
		(6)  have applied for any available financial aid or 
assistance; and        
		(7)  comply with any additional nonacademic 
requirement adopted by the coordinating board under this 
subchapter.
	SECTION __.  Section 56.455, Education Code, is amended to 
read as follows:  
	Sec. 56.455.  INITIAL ELIGIBILITY FOR LOAN.  To be eligible 
initially for a Texas B-On-time loan, a person must:
		(1)  be a resident of this state for purposes of 
Subchapter B, Chapter 54;  
		(2)  meet one of the following academic requirements:                         
			(A)  be a graduate of a public or [accredited] 
private high school, including a home school, in this state who 
graduated not earlier than the 2002-2003 school year under the 
recommended or advanced high school program established under 
Section 28.025(a); or
			(B)  have received an associate degree from an 
eligible institution not earlier than May 1, 2005;
		(3)  be enrolled for a full course load for an 
undergraduate student, as determined by the coordinating board, in 
an undergraduate degree or certificate program at an eligible 
institution;
		(4)  be eligible for federal financial aid, except that 
a person is not required to meet any financial need requirement 
applicable to a particular federal financial aid program; and
		(5)  comply with any additional nonacademic 
requirement adopted by the coordinating board under this 
subchapter.
	SECTION __.  The change in law made by this Act in amending 
Sections 56.304(a) and 56.455, Education Code, applies beginning 
with student financial aid awarded for the 2006-2007 academic year.  
The change in law does not affect student financial aid awarded for 
an academic period before that academic year, and the former law is 
continued in effect for that purpose.