Amend SB 1227 on third reading as follows:                                   
	(1)  Add the following appropriately numbered SECTIONS to 
the bill:          
	SECTION __.  Section 56.301, Education Code, is amended to 
read as follows:  
	Sec. 56.301.  DEFINITIONS.  In this subchapter:                                
		(1)  "Coordinating board" means the Texas Higher 
Education Coordinating Board.
		(2)  "Eligible institution" means[:                          
			[(A)]  an institution of higher education that 
offers one or more undergradutate degree or certification 
programs[; or
			[(B)  a private or independent institution of 
higher education].
		(3)  "Public junior college" ["Private or independent 
institution of higher education," "public junior college,"] and 
"public technical institute" have the meanings assigned by Section 
61.003.
	SECTION ___.  Subsection (b), Section 56.302, Education 
Code, is amended to read as follows:
	(b)  The purpose of this subchapter is to provide a grant of 
money to enable eligible students to attend public [and private] 
institutions of higher education in this state.
	SECTION __.  Subchapter M, Chapter 56, Education Code, is 
amended by adding Section 56.3021 to read as follows:
	Sec. 56.3021.  STUDENTS ENROLLED IN PRIVATE OR INDEPENDENT 
INSTITUTIONS:  LIMITED ELIGIBILITY FOR GRANT.  (a)  Notwithstanding 
any other provision of this subchapter, a student who was initially 
awarded a TEXAS grant under this subchapter to pay the costs of 
enrollment in a private or independent institution of higher 
education for the 2005 fall semester or an earlier academic period 
may continue to receive grants under this subchapter while enrolled 
in a private or independent institution of higher education if the 
student is otherwise eligible to receive a grant under this 
subchapter.
	(b)  For purposes of determining the eligibility of a student 
to continue to receive a grant under this section, a reference in 
this subchapter to an eligible institution includes a private or 
independent institution of higher education.
	(c)  The amount of a TEXAS grant under this section for a 
student enrolled full-time at a private or independent institution 
of higher education is the amount determined by the coordinating 
board as the average statewide amount of tuition and required fees 
that a resident student enrolled full-time in a baccalaureate 
degree program would be charged for that semester or term at general 
academic teaching institutions.
	(d)  Notwithstanding Subsection (c) or other law, 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 section 
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.
	(e)  Notwithstanding Subsection (c) or other law, a student 
enrolled in a private or independent institution of higher 
education may not receive a TEXAS grant under this section 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.
	(f)  This section expires September 1, 2015.                            
	(2)  In the SECTION of the bill that amends Section 56.304, 
Education Code, strike amended Subsection (a), Section 56.304, 
Education Code, and substitute the following:
	(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 a 
public or private [an eligible] institution of higher education 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 a 
public or private [an eligible] institution of higher education;
	(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.
		(3)  In the SECTION of the bill that amends Section 
56.305, Education Code, in Paragraph (B), Subdivision (2), of 
amended Subsection (e), Section 56.305, Education Code, between 
"attempted at" and "institutions", insert "public or private".
		(4)  In the SECTION of the bill that amends Section 
56.305, Education Code, in proposed Paragraph (B), Subdivision (2), 
Subsection (e-1), Section 56.305, Education Code, between 
"attempted at" and "institutions", insert "public or private".
		(5)  In the recital to the SECTION of the bill that 
amends Section 56.307, Education Code, strike "Subsections (b)" and 
substitute "Subsections (a)".
		(6)  In SECTION of the bill that amends Section 56.307, 
Education Code, strike amended Subsection (b), Section 56.307, 
Education Code, and substitute the following:
	(a)  The amount of a TEXAS grant for a semester or term for a 
person enrolled full-time at an eligible institution other than an 
institution covered by Subsection [(b),] (c)[,] or (d) is the 
amount determined by the coordinating board as the average 
statewide amount of tuition and required fees that a resident 
student enrolled full-time in a baccalaureate degree program would 
be charged for that semester or term at general academic teaching 
institutions.
	(7)  Strike the SECTION of the bill that adds Section 
56.3071, Education Code.
	(8)  In the SECTION of the bill that adds Section 61.2251, 
Education Code, following proposed Subsection (e), Section 
61.2251, Education Code, insert the following:
	(f)  If a person fails to meet any of the requirements of 
Subsection (c) after the completion of any semester or term, the 
person may not receive a tuition equalization grant during the next 
semester or term in which the person enrolls.  A person may become 
eligible to receive a tuition equalization grant in a subsequent 
semester or term if the person:
		(1)  completes a semester or term during which the 
student is not eligible for a tuition equalization grant; and
		(2)  meets all the requirements of Subsection (c).                     
	(9)  In the SECTION of the bill that adds Subsection (d), 
Section 61.227, Education Code, strike proposed Subsection (d), 
Section 61.227, Education Code, and substitute the following:
	(d)  Notwithstanding any restrictions provided by Subsection 
(c) on the amount of a grant, a tuition equalization grant for an 
academic period for a student who establishes exceptional financial 
need in accordance with the procedures and rules of the 
coordinating board may be certified by the coordinating board in an 
amount not to exceed 150 percent of the amount of the grant that the 
student would otherwise have been awarded for that period under the 
other provisions of this section.
	(10)  Add the following appropriately numbered SECTION to 
the bill:          
	SECTION __.  Subsection (b), Section 56.307, Education Code, 
is repealed.    
	(11)  Renumber other SECTIONS of the bill accordingly.