By Dukes                                              H.B. No. 2904

         Substitute the following for H.B. No. 2904:

         By Hill                                           C.S.H.B. No. 2904

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation, operation, and funding of the Texas

 1-3     Youthworks Program.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 2306, Government Code, is amended by

 1-6     adding Subchapter BB to read as follows:

 1-7                  SUBCHAPTER BB.  TEXAS YOUTHWORKS PROGRAM

 1-8           Sec. 2306.621.  DEFINITION.  In this subchapter, "sustainable

 1-9     construction or rehabilitation" means long-lasting,

1-10     energy-efficient construction or rehabilitation that reduces the

1-11     energy costs of conventional construction or rehabilitation by not

1-12     less than 20 percent.

1-13           Sec. 2306.622.  TEXAS YOUTHWORKS PROGRAM.  (a)  The Texas

1-14     Youthworks Program is created in the department to:

1-15                 (1)  promote economic self-sufficiency of disadvantaged

1-16     or at-risk youth by providing the youth with opportunities to

1-17     acquire job skills while performing community service activities;

1-18     and

1-19                 (2)  create opportunities for communities to restore

1-20     abandoned properties and historic areas, enhance public places, and

1-21     increase the availability of affordable, energy-efficient housing

1-22     for individuals and families of low and very low income.

1-23           (b)  The department shall administer the program and may

1-24     employ personnel as necessary to administer the program.

 2-1           Sec. 2306.623.  RULES.  The board shall adopt rules as

 2-2     necessary to implement the program, including rules for auditing

 2-3     and accountability.

 2-4           Sec. 2306.624.  FUNDING.  (a)  The program is funded by

 2-5     appropriations from the legislature and other available money

 2-6     identified by the department or other state agencies.

 2-7           (b)  The department may accept gifts, grants, and other

 2-8     donations for operation of the program.

 2-9           Sec. 2306.625.  GRANTS.  The director may award grants under

2-10     the program to eligible entities for projects that meet the

2-11     requirements of this subchapter.

2-12           Sec. 2306.626.  ELIGIBLE PARTICIPANTS.  (a)  To be eligible

2-13     to receive a grant, an entity must use the grant for a project that

2-14     provides services specified in Section 2306.627 to participants 16

2-15     years of age or older but younger than 24 years of age who are not

2-16     attending high school and have not received a high school diploma

2-17     or high school equivalency certificate or who are attending high

2-18     school or a program leading to a high school equivalency

2-19     certificate but are at risk of dropping out of high school or the

2-20     program.

2-21           (b)  In addition to the requirements of Subsection (a), a

2-22     participant must also be:

2-23                 (1)  a member of a household that receives public

2-24     assistance and earns not more than 80 percent of the area median

2-25     income;

2-26                 (2)  errant or homeless or a potential ward of the

2-27     Texas Department of Criminal Justice or Texas Youth Commission;

 3-1                 (3)  referred by another state agency; or

 3-2                 (4)  educationally disadvantaged, as defined by board

 3-3     rule.

 3-4           (c)  The department may authorize an entity to provide

 3-5     services to a participant who does not meet the requirements of

 3-6     Subsections (a) and (b).

 3-7           Sec. 2306.627.  SERVICES TO PARTICIPANTS.  (a)  A project for

 3-8     which a grant is received under the program shall provide or

 3-9     develop a plan to provide a participant

3-10                 (1)  integrated job and education training divided

3-11     between:

3-12                       (A)  practical, hands-on work experience at

3-13     project sites; and

3-14                       (B)  if the participant has not received a high

3-15     school diploma or high school equivalency certificate, academic and

3-16     project-based instruction designed to result in the attainment of a

3-17     high school diploma or high school equivalency certificate;

3-18                 (2)  direct access to counseling and support services,

3-19     including assessment and orientation services, life-skills

3-20     training, peer tutoring, gang prevention techniques, parenting and

3-21     child-care skills, and medical and legal screening and referrals;

3-22                 (3)  direct access to leadership training designed to

3-23     develop ethics, citizenship, personal responsibility, critical

3-24     thinking, and decision-making, problem-solving, and negotiation

3-25     skills;

3-26                 (4)  direct access to assistance in making the

3-27     transition from training to economic self-sufficiency, including

 4-1     career counseling, job placement, personal finance, home buyer

 4-2     education, and follow-up services;

 4-3                 (5)  a training stipend in an amount determined by

 4-4     board rule for a period not to exceed two years that is conditioned

 4-5     on the participant's demonstrating improved job performance and

 4-6     personal responsibility; and

 4-7                 (6)  an opportunity to earn scholarship awards for

 4-8     college tuition.

 4-9           (b)  A stipend provided under Subsection (a)(5) does not

4-10     count as income for purposes of determining the eligibility of the

4-11     participant or the participant's household for any form of public

4-12     assistance.

4-13           Sec. 2306.628.  COMMUNITY BENEFIT.  A project for which a

4-14     grant is received under the program shall provide at least one of

4-15     the following services to a community in which the project is

4-16     located:

4-17                 (1)  acquisition, rehabilitation, or construction of

4-18     energy-efficient, affordable housing for elderly individuals,

4-19     veterans of the United States armed forces, former participants in

4-20     the Peace Corps, VISTA, or AmeriCorps program, or individuals and

4-21     families of low and very low income;

4-22                 (2)  transitional housing for individuals who are

4-23     homeless or who have mental or physical disabilities; or

4-24                 (3)  sustainable construction or rehabilitation in

4-25     low-income neighborhoods of historic properties, community

4-26     facilities, cultural districts,  or parks owned by public or

4-27     nonprofit agencies.

 5-1           Sec. 2306.629.  ADVISORY BOARD; PARTICIPANT COUNCIL.  An

 5-2     entity that is awarded a grant for a project under the program

 5-3     shall establish:

 5-4                 (1)  an advisory board for the project that includes

 5-5     senior staff of the entity operating the project, area employers,

 5-6     industrial leaders, representatives of nonprofit organizations

 5-7     representing low income neighborhoods, and participants in the

 5-8     project; and

 5-9                 (2)  a participant council to provide comments and

5-10     suggestions regarding project policies.

5-11           Sec. 2306.630.  GRANT APPLICATION.  (a)  Subject to

5-12     Subsection (b), the following entities may apply to receive a grant

5-13     for an eligible project under this subchapter:

5-14                 (1)  a private, nonprofit, tax-exempt organization

5-15     listed in Section 501(c)(3), Internal Revenue Code of 1986;

5-16                 (2)  a public agency that operates a community-based

5-17     youth employment training program;

5-18                 (3)  a community housing development organization

5-19     certified by the state;

5-20                 (4)  an educational facility approved by the Texas

5-21     Youth Commission;

5-22                 (5)  a corps-based community service organization;

5-23                 (6)  an open-enrollment charter school approved by the

5-24     Texas Education Agency; or

5-25                 (7)  another entity authorized by board rule.

5-26           (b)  To be eligible to receive a grant, an applicant must

5-27     demonstrate that the applicant has at least three years of

 6-1     successful experience operating programs that benefit disadvantaged

 6-2     or at-risk youth.

 6-3           (c)  A grant application for a proposed project must be filed

 6-4     with the department in a form prescribed by the director. An

 6-5     application must include:

 6-6                 (1)  a statement of the amount of money requested;

 6-7                 (2)  a description of the proposed project;

 6-8                 (3)  a description of the applicant's qualifications,

 6-9     including the applicant's experience with youth, law enforcement

6-10     agencies, and educational and community groups;

6-11                 (4)  if applicable, a list of proposed sites for

6-12     construction or rehabilitation of housing or other buildings;

6-13                 (5)  if applicable, a description of proposed

6-14     sustainable construction or rehabilitation activities, including an

6-15     implementation schedule;

6-16                 (6)  a description of the applicant's proposed

6-17     procedures for recruiting and selecting participants in the

6-18     project;

6-19                 (7)  a proposed budget, including procedures for

6-20     auditing and accountability;

6-21                 (8)  if applicable, a description of proposed financing

6-22     for property acquisition, rehabilitation, or construction;

6-23                 (9)  a list of relevant contracts or other arrangements

6-24     between the applicant and public agencies that will facilitate

6-25     implementation of the project;

6-26                 (10)  a list of prospective donations, grants, or

6-27     in-kind contributions for the project that will supplement money

 7-1     received through the grant; and

 7-2                 (11)  a certification of the applicant's compliance

 7-3     with:

 7-4                       (A)  state and federal fair housing laws;

 7-5                       (B)  the Civil Rights Act of 1964 (42 U.S.C.

 7-6     Section 2000a et seq.);

 7-7                       (C)  the Americans with Disabilities Act of 1990

 7-8     (42 U.S.C. Section 12101 et seq.);

 7-9                       (D)  the federal Rehabilitation Act of 1973 (29

7-10     U.S.C. Section 701 et seq.); and

7-11                       (E)  the Age Discrimination in Employment Act of

7-12     1967 (29 U.S.C.  Section 621 et seq.).

7-13           (d)  In awarding a grant under the program, the director:

7-14                 (1)  may give preference to an applicant who has

7-15     experience in providing the services proposed to be provided under

7-16     the project; and

7-17                 (2)  shall give preference to an applicant who can

7-18     document the existence of matching contributions from other sources

7-19     and support from local organizations, community leaders, and

7-20     elected officials.

7-21           Sec. 2306.631.  OTHER FUNDING SOURCES REQUIRED.  The

7-22     department may not provide more than 75 percent of the money

7-23     budgeted for a project.

7-24           Sec. 2306.632.  LIMIT ON ADMINISTRATIVE EXPENSE.  Not more

7-25     than 15 percent of the money awarded under the program for a

7-26     project may be used for administrative costs associated with the

7-27     project.

 8-1           Sec. 2306.633.  ANNUAL REPORT.  (a)  The director shall

 8-2     report to the governor and the legislature at the end of each

 8-3     fiscal year on the status of the program.

 8-4           (b)  The annual report must include for that fiscal year:

 8-5                 (1)  the number of grants awarded;

 8-6                 (2)  the total amount of grants awarded;

 8-7                 (3)  the geographical distribution of grants awarded;

 8-8                 (4)  the number of youth and other persons

 8-9     participating in projects funded by grants;

8-10                 (5)  the number of youth and other persons who secured

8-11     permanent jobs at the conclusion of participation in projects

8-12     funded by grants; and

8-13                 (6)  the number of housing units constructed or

8-14     rehabilitated through projects funded by grants.

8-15           SECTION 2.  (a)  A work group is established to assist the

8-16     Texas Department of Housing and Community Affairs in implementing

8-17     and promoting the Texas Youthworks Program created by Section

8-18     2306.622, Government Code, as added by this Act.  Specifically, the

8-19     work group shall:

8-20                 (1)  identify all available state and federal sources

8-21     of funding for the program; and

8-22                 (2)  identify appropriate state programs, services, or

8-23     activities that could be delivered by referring eligible

8-24     individuals to the program.

8-25           (b)  The work group is composed of the chief administrative

8-26     officer, or a person designated by that officer, of each of the

8-27     following agencies:

 9-1                 (1)  the Texas Department of Housing and Community

 9-2     Affairs;

 9-3                 (2)  the Texas Workforce Commission;

 9-4                 (3)  the Texas Youth Commission;

 9-5                 (4)  the Texas Education Agency;

 9-6                 (5)  the Texas Juvenile Probation Commission;

 9-7                 (6)  the community justice assistance division of the

 9-8     Texas Department of Criminal Justice; and

 9-9                 (7)  any other state agency that chooses to participate

9-10     in the work group's activities.

9-11           (c)  A member of the work group designated by a chief

9-12     administrative officer serves at the will of the designating

9-13     officer.

9-14           (d)  The members of the work group shall elect a presiding

9-15     officer and any other necessary officers for the work group.

9-16           (e)  The work group shall meet at the call of the presiding

9-17     officer.

9-18           (f)  A member of the work group receives no compensation for

9-19     serving on the work group.

9-20           (g)  The work group is not subject to Article 6252-33,

9-21     Revised Statutes.

9-22           (h)  The work group shall be formed and shall hold its first

9-23     meeting not later than November 1, 1997.

9-24           (i)  Not later than November 15, 1998, the work group shall:

9-25                 (1)  complete the tasks specified in Subsection (a)  of

9-26     this section; and

9-27                 (2)  submit a report to the legislature containing the

 10-1    work group's findings and recommendations for funding and utilizing

 10-2    the program.

 10-3          (j)  The work group dissolves and this section expires

 10-4    September 1, 1999.

 10-5          SECTION 3.  If, before implementing any provision of this

 10-6    Act, a state agency determines that a waiver or authorization from

 10-7    a federal agency is necessary for implementation, the state agency

 10-8    shall request the waiver or authorization and may delay

 10-9    implementing that provision until the waiver or authorization is

10-10    granted.

10-11          SECTION 4.  This Act takes effect September 1, 1997.

10-12          SECTION 5.  The importance of this legislation and the

10-13    crowded condition of the calendars in both houses create an

10-14    emergency and an imperative public necessity that the

10-15    constitutional rule requiring bills to be read on three several

10-16    days in each house be suspended, and this rule is hereby suspended.