Amend SB 1640 by adding the following appropriately numbered 
SECTIONS to the bill and renumbering the remaining SECTIONS of the 
bill accordingly:
	SECTION ____.  Section 54.203, Education Code, is amended by 
amending Subsection (e) and adding Subsection (e-1) to read as 
follows:
	(e)  The exemption from fees provided for in Subsection (a) 
[of this section] does not apply to a person who [if] at the time of 
[his] registration [he] is entitled to receive [eligible for] 
educational benefits under federal legislation [in effect at the 
time of his registration] if the value of those benefits received in 
a semester or other term is equal to or exceeds the value of the 
exemption for the same semester or other term.  If the value of 
federal benefits received in a semester or other term does not equal 
or exceed the value of the exemption for the same semester or other 
term, [except that] the person [must first utilize the federal 
benefit for which he] is entitled to receive both the federal 
benefit and the exemption in the same semester or other term.  The
[eligible and the] combined amount of the federal benefit plus the 
amount of the exemption received in a semester or other term may
[this waiver shall] not exceed the cost of tuition and fees for that 
semester or other term [maximum value of the waiver].  A person is 
covered by the exemption [exemptions] if the person's [his] right 
to benefits under federal legislation is extinguished at the time 
of the person's [his] registration, except that a person may [is] 
not receive [eligible for] an exemption from fees under this 
section if the person's right to benefits under federal legislation 
is extinguished because the person is in default of repayment of a 
loan made to the person under a federal program to provide or 
guarantee loans for educational purposes.
	(e-1)  A person may [is] not receive an [eligible for the] 
exemption under this section if the person is in default on a loan 
made or guaranteed for educational purposes by the State of Texas.
	SECTION ____.  Section 54.203(e), as amended by this Act, 
and Section 54.203(e-1), as added by this Act, apply beginning with 
tuition and fees for the 2007 fall semester.  Tuition and fees for a 
term or semester before the 2007 fall semester are covered by the 
law in effect immediately before the effective date of this Act, and 
the former law is continued in effect for that purpose.