Amend HB 3851 by adding the following appropriately numbered 
SECTIONS to the bill and renumbering the other SECTIONS of the bill 
accordingly:
	SECTION ___.  Section 56.302, Education Code, is amended by 
adding Subsection (a-1) to read as follows:
	(a-1)  Notwithstanding Subsection (a), an individual grant 
awarded under Section 56.3076 is known as a TEXAS technology grant.  
A TEXAS technology grant is not a TEXAS grant for purposes of this 
subchapter.  This subsection expires September 1, 2013.
	SECTION ___.  Subsection (a), Section 56.3021, Education 
Code, is amended to read as follows:
	(a)  Notwithstanding any other provision of this subchapter, 
a student who was 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 a TEXAS grant [grants under this 
subchapter] while enrolled in a private or independent institution 
of higher education if the student is otherwise eligible to receive 
a TEXAS grant under this subchapter.
	SECTION ___.  Section 56.304, Education Code, is amended by 
amending Subsections (a), (b), and (f) and adding Subsection (b-1) 
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 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 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 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.
	(b)  Except as otherwise provided by Subsection (b-1), a [A] 
person is not eligible to receive a TEXAS grant if the person has 
been convicted of a felony [or an offense under Chapter 481, Health 
and Safety Code (Texas Controlled Substances Act), or under the law 
of another jurisdiction involving a controlled substance as defined 
by Chapter 481, Health and Safety Code,] unless the person has met 
the other applicable eligibility requirements under this 
subchapter and has:
		(1)  received a certificate of discharge by the Texas 
Department of Criminal Justice or a correctional facility or 
completed a period of probation ordered by a court, and at least two 
years have elapsed from the date of the receipt or completion; or
		(2)  been pardoned, had the record of the offense 
expunged from the person's record, or otherwise has been released 
from the resulting ineligibility to receive a grant under this 
subchapter.
	(b-1)  A person who is convicted of any offense under a 
federal or state law, including the law of another state, involving 
the possession or sale of a controlled substance, as defined by 
Chapter 481, Health and Safety Code, for conduct that occurred 
during a period of enrollment in which the person is receiving a 
TEXAS grant:
		(1)  is ineligible to receive a TEXAS grant for the same 
period for which 20 U.S.C. Section 1091(r) provides for 
ineligibility to receive a federal grant, loan, or work assistance 
had the conduct occurred during a period of enrollment in which the 
person was receiving a federal grant, loan, or work assistance; and
		(2)  may become eligible to receive a TEXAS grant 
before the end of the ineligibility period provided by Subdivision 
(1) in the same manner as provided by 20 U.S.C. Section 1091(r) for 
a person to resume eligibility for a federal grant, loan, or work 
assistance.
	(f)  The requirement in Subsection (a)(2) that a person must 
have completed the recommended or advanced high school curriculum 
does not apply to a person who:
		(1)  attended a public high school in a school district 
if, not later than March 1 of the school year in which the person is 
scheduled to graduate from high school, the superintendent of that 
district certifies to the coordinating board [commissioner of 
education] that the high school did not offer all the necessary 
courses for a person to complete all parts of the recommended or 
advanced high school curriculum; and
		(2)  completed all courses at the high school offered 
toward the completion of the recommended or advanced high school 
curriculum.
	SECTION ___.  Subsections (a), (b), and (c), Section 56.305, 
Education Code, are amended to read as follows:
	(a)  After initially qualifying for a TEXAS grant, a person 
may continue to receive a TEXAS grant during each academic year 
[semester or term] in which the person is enrolled at an eligible 
institution only if the person:
		(1)  meets financial need requirements as defined by 
the coordinating board;
		(2)  is enrolled in an undergraduate degree or 
certificate program at an eligible institution;
		(3)  is enrolled for at least three-fourths of a full 
course load for an undergraduate student, as determined by the 
coordinating board;
		(4)  makes satisfactory academic progress toward an 
undergraduate degree or certificate; and
		(5)  complies with any additional nonacademic 
requirement adopted by the coordinating board.
	(b)  A person who under Section 56.304(b) or (b-1) would not 
be [is not] eligible [to continue] to receive a TEXAS grant is not 
eligible to continue to receive a grant under this section [if the 
person has been convicted of a felony or an offense under Chapter 
481, Health and Safety Code (Texas Controlled Substances Act), or 
under the law of another jurisdiction involving a controlled 
substance as defined by Chapter 481, Health and Safety Code, unless 
the person has met the other applicable eligibility requirements 
under this subchapter and has:
		[(1)  received a certificate of discharge by the Texas 
Department of Criminal Justice or a correctional facility or 
completed a period of probation ordered by a court, and at least two 
years have elapsed from the date of the receipt or completion; or
		[(2)  been pardoned, had the record of the offense 
expunged from the person's record, or otherwise has been released 
from the resulting ineligibility to receive a grant under this 
subchapter].
	(c)  If a person fails to meet any of the requirements of 
Subsection (a) after the completion of any academic year [semester 
or term], the person may not receive a TEXAS grant for a semester or 
term of [during] the next academic year [semester or term] in which 
the person enrolls.  A person may become eligible to receive a TEXAS 
grant in a subsequent academic year [semester or term] if the 
person:
		(1)  completes an academic year [a semester or term] 
during which the student is not eligible for a scholarship; and
		(2)  meets all the requirements of Subsection (a).                            
	SECTION ___.  Subchapter M, Chapter 56, Education Code, is 
amended by adding Section 56.3076 to read as follows:
	Sec. 56.3076.  TEXAS TECHNOLOGY GRANT PILOT PROGRAM.  (a)  
Grants may be awarded under this section only from:
		(1)  the amount of money available for TEXAS grants for 
an award period that exceeds the amount necessary to award a TEXAS 
grant to each eligible applicant in the applicable amount 
determined under Section 56.307;
		(2)  money specifically appropriated for purposes of 
this section; or
		(3)  money, other than money described by Subdivision 
(1) or (2), that may lawfully be used for purposes of this section.
	(b)  The coordinating board may use money described by 
Subsection (a) to award a TEXAS technology grant to a student who:
		(1)  is enrolled in an undergraduate engineering or 
computer science program;
		(2)  has completed at least 60 semester credit hours 
toward a baccalaureate degree in engineering or computer science; 
and
		(3)  meets all eligibility requirements under Section 
56.305 to receive a TEXAS grant.
	(c)  The amount of a TEXAS technology grant is determined by 
the coordinating board and may not exceed an amount equal to two 
times the amount that may be awarded as a TEXAS grant under Section 
56.307(a) for the same academic period.
	(d)  In awarding a TEXAS technology grant, the coordinating 
board:    
		(1)  shall give priority to a student who is a member of 
a group underrepresented in engineering or computer science, as 
applicable, as established under coordinating board rule;
		(2)  may award different amounts based on the amount of 
coursework a student has completed toward earning a degree in 
engineering or computer science, as provided by coordinating board 
rule;  and
		(3)  if the money available for TEXAS technology grants 
is insufficient to award a grant to each eligible applicant, may 
give priority in awarding grants to students who demonstrate the 
greatest financial need.
	(e)  Section 56.306 applies to the use and disbursement of a 
TEXAS technology grant in the same manner as that section applies to 
the use and disbursement of a TEXAS grant.
	(f)  A person may not simultaneously receive a TEXAS grant 
and a TEXAS technology grant.
	(g)  This section expires September 1, 2013.                            
	SECTION ___.  Subsection (b), Section 56.308, Education 
Code, is amended to read as follows:
	(b)  Each school district shall:                                               
		(1)  notify its middle school students, junior high 
school students, and high school students, those students' teachers 
and counselors, and those students' parents of federal and state 
financial aid [the TEXAS grant and Teach for Texas grant] programs 
to assist students with paying the costs of higher education, the 
primary eligibility requirements of the programs [each program], 
the need for students to make informed curriculum choices to be 
prepared for success beyond high school, [and] sources of 
information on higher education admissions, and sources of 
information on financial aid in a manner that assists the district 
in implementing a strategy adopted by the district under Section 
11.252(a)(4); and
		(2)  ensure that each student's official transcript or 
diploma indicates whether the student has completed or is on 
schedule to complete:
			(A)  the recommended or advanced high school 
curriculum required for grant eligibility under Section 28.002 or 
28.025; or
			(B)  for a school district covered by Section 
56.304(f)(1), the required portion of the recommended or advanced 
high school curriculum in the manner described by Section 
56.304(f)(2).
	SECTION ___.  Section 56.311, Education Code, is transferred 
to Subchapter A, Chapter 56, Education Code, redesignated as 
Section 56.005, and amended to read as follows:
	Sec. 56.005 [56.311].  LEGISLATIVE OVERSIGHT COMMITTEE ON 
STATE FINANCIAL AID PROGRAMS FOR HIGHER EDUCATION.  (a)  The 
Legislative Oversight Committee on state financial aid programs for 
higher education [the TEXAS grant program and Teach for Texas grant 
program] is composed of six members as follows:
		(1)  three members of the senate appointed by the 
lieutenant governor; and  
		(2)  three members of the house of representatives 
appointed by the speaker of the house of representatives.
	(b)  The committee shall:                                                      
		(1)  meet at least twice a year with the coordinating 
board; and            
		(2)  receive information regarding rules relating to 
state financial aid programs for higher education [the TEXAS grant 
program and Teach for Texas grant program] that have been adopted by 
the coordinating board or proposed for adoption by the coordinating 
board.
	(c)  The committee may request reports and other information 
from the coordinating board relating to the operation by the 
coordinating board of state financial aid programs for higher 
education [the TEXAS grant program and Teach for Texas grant 
program by the coordinating board].
	(d)  The committee shall review the specific recommendations 
for legislation [related to this subchapter] that are proposed by 
the coordinating board in relation to state financial aid programs 
for higher education.
	(e)  The committee shall monitor the operation of state 
financial aid programs for higher education [the TEXAS grant 
program and Teach for Texas grant program], with emphasis on the 
manner of the award of financial aid [grants], the total amount of 
financial aid [number of grants] awarded, the amount of financial 
aid awarded under each state financial aid program, and the 
educational progress made by persons who have received financial 
aid [grants] under those programs.
	(f)  The committee shall file a report with the governor, 
lieutenant governor, and speaker of the house of representatives 
not later than December 31 of each even-numbered year.
	(g)  The report shall include identification of any problems 
in the state financial aid programs for higher education [TEXAS 
grant program and Teach for Texas grant program] with recommended 
solutions for the coordinating board and for legislative action.
	SECTION ___.  Section 56.463, Education Code, is amended by 
adding Subsection (c) to read as follows:
	(c)  The coordinating board shall distribute money in the 
Texas B-On-time student loan account to be paid to an eligible 
institution under this subchapter through the electronic funds 
transfer system that is maintained by the Texas Guaranteed Student 
Loan Corporation for disbursing loan money from commercial lenders 
participating in the guaranteed student loan program under Chapter 
57, except that, at the request of an eligible institution, the 
coordinating board may distribute the money through another means 
specified by the institution.  The coordinating board and the Texas 
Guaranteed Student Loan Corporation shall enter into a contract 
that provides for the corporation to make the electronic funds 
transfer system available for the coordinating board's use as 
necessary to carry out this subsection.
	SECTION ___.  Subchapter C, Chapter 61, Education Code, is 
amended by adding Sections 61.0661, 61.0662, and 61.0663 to read as 
follows:
	Sec. 61.0661.  FEASIBILITY STUDY REGARDING ISSUANCE OF DEBIT 
CARDS TO STUDENTS AWARDED FINANCIAL AID.  (a)  The board, in 
consultation with student financial aid officers of institutions of 
higher education and private or independent institutions of higher 
education, shall conduct a study to evaluate:
		(1)  the feasibility of issuing to a student who is 
awarded state or institutional financial aid to pay higher 
education expenses a debit card for debiting the account to which 
the student's financial aid money is assigned;
		(2)  if feasible to issue a debit card, the financial 
aid programs for which use of a debit card would be suitable;
		(3)  the manner, if any, in which a debit card could be 
consolidated with another debit card issued to a student by an 
institution of higher education or a private or independent 
institution of higher education; and
		(4)  any other issue the study participants determine 
would be helpful in making decisions concerning the issuance of a 
debit card to a student who is awarded state or institutional 
financial aid.
	(b)  Not later than September 30, 2008, the board shall 
complete the study required by Subsection (a) and shall submit to 
the governor, the lieutenant governor, the speaker of the house of 
representatives, and the presiding officer of each legislative 
standing committee or subcommittee with primary jurisdiction over 
higher education a report that includes any recommendations that 
result from the study.
	(c)  This section expires January 1, 2009.                              
	Sec. 61.0662.  IMPACT STUDY: OVERALL GRADE POINT AVERAGE 
REQUIREMENT FOR FINANCIAL AID; COMPUTATION OF GRADE POINT AVERAGE.  
(a)  The board, in consultation with appropriate representatives of 
institutions of higher education and private or independent 
institutions of higher education, shall conduct a study to evaluate 
the impact of:
		(1)  requiring a student to maintain an overall grade 
point average of at least 3.0 on a four-point scale or the 
equivalent in order for the student to retain eligibility for 
receiving state financial aid to pay higher education costs; and
		(2)  excluding from the computation of overall grade 
point average for purposes of determining eligibility to receive 
state financial aid, any grade a student receives in an elective 
course.
	(b)  In conducting the study required by Subsection (a)(1), 
the board:
		(1)  shall consider whether a grade point average 
requirement higher than 2.5 on a four-point scale or the equivalent 
for retaining eligibility for receiving state financial aid should 
be phased in over time; and
		(2)  may consider the impact of establishing an overall 
grade point average requirement that is higher than 2.5 on a 
four-point scale or the equivalent but that is lower than 3.0 on a 
four-point scale or the equivalent.
	(c)  Not later than September 30, 2008, the board shall 
complete the study required by this section and shall submit to the 
governor, the lieutenant governor, the speaker of the house of 
representatives, and the presiding officer of each legislative 
standing committee and subcommittee with primary jurisdiction over 
higher education a report that includes any recommendations that 
result from the study.
	(d)  This section expires January 1, 2009.                              
	Sec. 61.0663.  FEASIBILITY STUDY REGARDING TEXAS GRANT AWARD 
AMOUNTS.  (a)  The board, in consultation with appropriate 
representatives of institutions of higher education, shall conduct 
a study to evaluate the feasibility of awarding to a student who is 
eligible for a TEXAS grant under Subchapter M, Chapter 56, until the 
student has completed 90 semester credit hours of higher education 
coursework, less than the full amount of a TEXAS grant, as that 
amount is determined under Section 56.307.  The board and the other 
study participants shall consider awarding to an eligible student 
amounts equal to the following percentages of the full amount of a 
TEXAS grant:
		(1)  50 percent, until the student has completed 30 
semester credit hours of higher education coursework;
		(2)  60 percent, until the student has completed 60 
semester credit hours of higher education coursework; and
		(3)  75 percent, until the student has completed 90 
semester credit hours of higher education coursework.
	(b)  The board and the other study participants may consider:           
		(1)  awarding amounts based on percentages of the full 
amount of a TEXAS grant other than the percentages specified by 
Subsection (a); or
		(2)  basing reduced TEXAS grant award amounts on 
numbers of semester credit hour coursework completed other than the 
numbers specified by Subsection (a).
	(c)  Not later than September 30, 2008, the board shall 
complete the study required by Subsection (a) and shall submit to 
the governor, the lieutenant governor, the speaker of the house of 
representatives, and the presiding officer of each legislative 
standing committee and subcommittee with primary jurisdiction over 
higher education a report that includes any recommendations that 
result from the study.
	SECTION ___.  Subsections (b) and (c), Section 61.2251, 
Education Code, as added by Chapter 1230, Acts of the 79th 
Legislature, Regular Session, 2005, are amended to read as follows:
	(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)  make satisfactory academic progress toward a 
degree or certificate by meeting the requirements established for 
that purpose by the approved college or university in which the 
person is enrolled; and 
		(7)  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), other 
than the requirements established under Subsection (b)(6);
		(2)  makes satisfactory academic progress toward a 
degree or certificate by completing [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.
	SECTION ___.  Subsection (g), Section 56.304, Education 
Code, is repealed.   
	SECTION ___.  (a)  Except as provided by Subsection (b) of 
this section, the changes in law made by this Act to Subchapter M, 
Chapter 56, Education Code, and to Section 61.2251, Education Code, 
as added by Chapter 1230, Acts of the 79th Legislature, Regular 
Session, 2005, apply beginning with the 2008 fall semester.
	(b)  The Texas Higher Education Coordinating Board shall 
award TEXAS technology grants under Section 56.3076, Education 
Code, as added by this Act, beginning with the 2009 fall semester.