76R13412 KKA-F                           
         By Olivo, Chavez, Rangel, Naishtat                    H.B. No. 3470
         Substitute the following for H.B. No. 3470:
         By Maxey                                          C.S.H.B. No. 3470
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of a Parents as Scholars pilot program for
 1-3     certain persons eligible to receive TANF benefits.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 31, Human Resources Code,
 1-6     is amended by adding Section 31.045 to read as follows:
 1-7           Sec. 31.045.  PARENTS AS SCHOLARS PILOT PROGRAM.  (a)
 1-8     Subject to available funding, the department shall by rule
 1-9     establish a student financial aid pilot program to be entitled the
1-10     Parents as Scholars pilot program.  A person eligible for financial
1-11     assistance who participates in the program shall receive, in lieu
1-12     of financial assistance, a package of benefits designed to assist
1-13     the person in obtaining a postsecondary degree from an institution
1-14     of higher education, as defined by Section 61.003, Education Code.
1-15     The benefits provided may include assistance with payment of
1-16     tuition and fees, payment of the cost of textbooks and other
1-17     educational supplies, and payment of other costs associated with
1-18     enrollment in the institution.
1-19           (b)  The department by rule shall establish eligibility
1-20     criteria for the program.  The criteria must:
1-21                 (1)  require that the person satisfy the eligibility
1-22     criteria for financial assistance;
1-23                 (2)  prohibit a person who possesses a bachelor's
1-24     degree from any public or private institution of higher education
 2-1     from participating in the program;
 2-2                 (3)  require that the person seek a postsecondary
 2-3     degree that the department considers likely to improve the person's
 2-4     ability to obtain employment in the person's local labor market;
 2-5     and
 2-6                 (4)  be designed to result in the selection of  persons
 2-7     who:
 2-8                       (A)  are currently unable, due to a lack of
 2-9     skills and training, to obtain employment at a compensation level
2-10     equal to at least 85 percent of the area median income; and
2-11                       (B)  demonstrate the aptitude to successfully
2-12     complete the requirements for obtaining a postsecondary degree.
2-13           (c)  A program participant is eligible for medical assistance
2-14     under Chapter 32 and support services under Section 31.010 in the
2-15     same manner as a person receiving financial assistance.
2-16           (d)  The department by rule shall establish time limits and
2-17     other conditions applicable to a program participant, provided that
2-18     the department may not provide assistance to a program participant
2-19     for more than 48 months, and the department must require a program
2-20     participant to demonstrate satisfactory educational progress to
2-21     remain eligible for assistance.
2-22           (e)  The department shall fund the program from state funds
2-23     specifically appropriated for that purpose or from other state
2-24     funds otherwise available to the department for the program. The
2-25     department may accept gifts and grants from public or private
2-26     sources to be used to fund the program.  The department shall
2-27     establish and administer the program in such a manner that money
 3-1     spent under the program is included in determining the state's
 3-2     compliance with federal maintenance of effort requirements under
 3-3     Part A, Title IV, Social Security Act (42 U.S.C. Section 601 et
 3-4     seq.).
 3-5           (f)  Not later than January 15, 2003, the department shall
 3-6     submit to the legislature a report relating to the program
 3-7     established under this section. The report must include:
 3-8                 (1)  an evaluation of the program's effectiveness in
 3-9     improving employability of persons eligible for Temporary
3-10     Assistance for Needy Families (TANF) benefits; and
3-11                 (2)  recommendations from the department concerning
3-12     termination, continuation, or expansion of the program.
3-13           (g)  This section expires September 1, 2003.
3-14           SECTION 2.  If before implementing any provision of this Act
3-15     a state agency determines that a waiver or authorization from a
3-16     federal agency is necessary for implementation, the state agency
3-17     shall request the waiver or authorization and may delay
3-18     implementing that provision until the waiver or authorization is
3-19     granted.
3-20           SECTION 3.  The importance of this legislation and the
3-21     crowded condition of the calendars in both houses create an
3-22     emergency and an imperative public necessity that the
3-23     constitutional rule requiring bills to be read on three several
3-24     days in each house be suspended, and this rule is hereby suspended,
3-25     and that this Act take effect and be in force from and after its
3-26     passage, and it is so enacted.