85R6583 KJE-F By: Seliger S.B. No. 886 A BILL TO BE ENTITLED AN ACT relating to the Texas Educational Opportunity Grant program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 56.405(f), Education Code, is amended to read as follows: (f) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a grant under this subchapter, in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a grant under this subchapter: (1) while enrolled in a number of semester credit hours that is less than the number of semester credit hours required under Subsection (a)(3); [or] (2) if the student's grade point average or completion rate falls below the satisfactory academic progress requirements of Subsection (d); (3) for a number of semester credit hours that is greater than the number of semester credit hours permitted under Section 56.404(d); or (4) for a number of years that is greater than the number of years for which the person is eligible to receive a grant under Section 56.404(f). SECTION 2. Section 56.406, Education Code, is amended to read as follows: Sec. 56.406. GRANT USE. A person receiving a grant under this subchapter may use the money only to pay the amount of tuition and required fees and the cost of required textbooks [any usual and customary cost of attendance] at an eligible institution incurred by the student. The institution may disburse all or part of the proceeds of a grant under this subchapter to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid. SECTION 3. Sections 56.407(a), (c), and (g), Education Code, are amended to read as follows: (a) The amount of a grant awarded to a student under this subchapter for a semester or other academic term [student enrolled full-time at an eligible institution] is an [the] amount not to exceed the lesser of: (1) the difference between: (A) [determined by the coordinating board as] the [average statewide] amount of tuition and required fees incurred by the student at an eligible institution for that semester or term plus a textbook stipend in an amount determined by the coordinating board; and (B) the amount of the Pell Grant for which the student is eligible, if any; or (2) the student's unmet financial need for that semester or term [that a resident student enrolled full-time in an associate degree or certificate program would be charged for that semester or term at eligible institutions]. (c) Except as provided by Subsection (a)(1), the [The] amount of a grant under this subchapter may not be reduced by any gift aid for which the person receiving the grant is eligible, unless the total amount of a person's grant plus any gift aid received exceeds the student's financial need [total cost of attendance at an eligible institution]. (g) An institution may use other available sources of financial aid, other than a loan or work-study program [a Pell grant], to cover any difference in the amount of a grant under this subchapter and the actual amount of tuition and required fees at the institution. SECTION 4. Sections 56.407(b) and (d), Education Code, are repealed. SECTION 5. The changes in law made by this Act apply beginning with initial or subsequent grants awarded for the 2018 fall semester. Initial or subsequent grants awarded for a semester or term before the 2018 fall semester are governed by the applicable law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 6. This Act takes effect January 1, 2018.