79R6038 KEL-D
By:  Howard                                                       H.B. No. 530
Substitute the following for H.B. No. 530:                                    
By:  Goolsby                                                  C.S.H.B. No. 530
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting discrimination based on a student's primary 
or secondary school in awarding state scholarships or other 
financial aid for higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 56, Education Code, is 
amended by adding Section 56.005 to read as follows:
	Sec. 56.005.  NONDISCRIMINATION IN FINANCIAL AID AWARDS 
BASED ON TYPE OF SCHOOL ATTENDED.  An institution of higher 
education or state agency that awards financial aid of any kind to 
students to attend public or private institutions of higher 
education may not in awarding that aid discriminate against a 
student based on the type of primary or secondary school the student 
attended.
	SECTION 2.  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 3.  The change in law made by this Act 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.
	SECTION 4.  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, 2005.