JH C.S.H.B. 2904 75(R) BILL ANALYSIS URBAN AFFAIRS C.S.H.B. 2904 By: Dukes 5-7-97 Committee Report (Substituted) BACKGROUND C.S.H.B. 2904 seeks to establish the Texas Youthworks Grant Program in the Texas Department of Housing and Community Affairs and sets forth requirements for grant recipients and participants. The program, modeled after the national Youthbuild Program, would combine the goals of constructing energy-efficient affordable housing, community service projects, attainment of a high school diploma or its equivalent, and providing job training for economically and educationally disadvantaged youth. Participants would gain valuable hands-on experience and marketable skills constructing state-approved affordable housing while working toward a high school diploma or equivalent and receiving career and leadership counseling services. C.S.H.B. 2904 would encourage certain state agencies to seek ways to utilize the program using existing resources. PURPOSE As proposed, C.S.H.B. 2904 outlines provisions regarding the creation, operation, and funding of the Texas Youthworks Program. RULEMAKING AUTHORITY Rulemaking authority is granted to the board of the Texas Department of Housing and Community Affairs under SECTION 1 (Section 2306.623, 2306.626, and 2306.627, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 2306, Government Code, by adding Subchapter BB, as follows: SUBCHAPTER BB. TEXAS YOUTHWORKS PROGRAM Sec. 2306.621. DEFINITIONS. Defines "sustainable construction or rehabilitation." Sec. 2306.622. TEXAS YOUTHWORKS PROGRAM. Provides that the Texas Youthworks Program is created in the Texas Department of Housing and Community Affairs to promote economic self-sufficiency of disadvantaged or at-risk youth by providing the youth with opportunities to acquire job skills while performing community service, create opportunities for communities to restore abandoned properties and historic areas, enhance public places, and increase the availability of affordable, energy-efficient housing for low-income individuals and families. Requires the department to administer the program and authorizes the department to employ personnel as necessary to administer the program. Sec. 2306.623. RULES. Requires the board of the Texas Department of Housing and Community Affairs to adopt rules as necessary to implement the program, including rules for auditing and accountability. Sec. 2306.624. FUNDING. Provides that the program is funded by appropriations from the legislature and other available funds identified by the department or other state agencies. BILL ANALYSIS HB 2904 Page 2 Authorizes the department to accept gifts, grants, and other donations for operation of the program. Sec. 2306.625. GRANTS. Authorizes the executive director of the department to award grants under the program for projects that meet the requirements of this subchapter. Sec. 2306.626. ELIGIBLE PARTICIPANTS. Sets forth instances in which an entity is eligible to receive a grant. Sets forth criteria which participants are required to meet, including age requirement of 16 by younger than 24. Provides that the department may authorize a grantee to provide services to a participant who does not meet the requirements. Sec. 2306.627. SERVICES TO PARTICIPANTS. Requires a project for which a grant is received under the program to provide or develop a plan to provide participants with job and education training, and related skills. Allows for training stipends not counted as income for purposes of determining the eligibility of the participant or the participant's household for any form of public assistance. Sec. 2306.628. COMMUNITY BENEFIT. Requires a project for which a grant is received under the program to provide at least one of certain services to a community in which the project is located. Sec. 2306.629. ADVISORY BOARD; PARTICIPANT COUNCIL. Sets forth these two bodies a grantee who is awarded a grant for a project under the program is required to establish. Sec. 2306.630. GRANT APPLICATION. Sets forth organizations authorized to apply to receive a grant for an eligible project under this subchapter. Requires an applicant to demonstrate that the applicant has at least three years of successful experience operating programs that benefit disadvantaged or at-risk youth to be eligible to receive a grant. Requires a grant application to be filed with the department in a form prescribed by the director. Sets forth items required to be included in an application. Sets forth certain applicants to which the department may or shall give preference to in awarding a grant under the program. Sec. 2306.631. OTHER FUNDING SOURCES REQUIRED. Prohibits the department from providing more than 75 percent of the money budgeted for a project. Sec. 2306.632. LIMIT ON ADMINISTRATIVE EXPENSE. Provides that not more than 15 percent of the money awarded under the program for a project may be used for administrative costs associated with the project. Sec. 2306.633. ANNUAL REPORT. Requires the director to report to the governor and the legislature at the end of each fiscal year on the status of the program. Sets forth information the annual report is required to include for that fiscal year. SECTION 2. Creates a "work group" composed of state agency representatives within department to assist in the bill's implementation. SECTION 3. Provides that if, before implementing any provision of this Act, a state agency determines that a waiver or authorization from a federal agency is necessary for implementation, the state agency shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted. SECTION 4. Effective date: September 1, 1997. SECTION 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute: 1) redesignates proposed legislation as subchapter BB, rather than AA, of the Government Code, Chapter 2306. 2) deletes requirement of rule consultation by board with advisory council. 3) lowers participating age from 17 to 16. 4) deletes requirement that training be divided evenly below job and education training. 5) corrects clerical errors. 6) deletes transitional housing projects for persons with disease. 7) permits, but does not require, preference to applicants with experience. 8) creates the "work group" within the department.