By Olivo                                              H.B. No. 3470
         76R3902 KKA-D                           
                                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 Parents as Scholars pilot program under which a person
1-10     eligible for financial assistance receives, in lieu of financial
1-11     assistance, a package of benefits designed to assist the person in
1-12     obtaining a postsecondary degree from an institution of higher
1-13     education.  The benefits provided may include assistance with
1-14     payment of tuition and fees, payment of the cost of textbooks and
1-15     other educational supplies, and payment of other costs associated
1-16     with enrollment in an institution of higher education.
1-17           (b)  The department by rule shall establish eligibility
1-18     criteria for the program.  The criteria must:
1-19                 (1)  require that the person satisfy the eligibility
1-20     criteria for financial assistance;
1-21                 (2)  prohibit a person who possesses a bachelor's
1-22     degree from an institution of higher education from participating
1-23     in the program;
1-24                 (3)  require that the person seek a postsecondary
 2-1     degree that the department considers likely to improve the person's
 2-2     ability to obtain employment in the person's local labor market;
 2-3     and
 2-4                 (4)  be designed to result in the selection of  persons
 2-5     who:
 2-6                       (A)  are currently unable, due to a lack of
 2-7     skills and training, to obtain employment at a compensation level
 2-8     equal to at least 85 percent of the area median income; and
 2-9                       (B)  demonstrate the aptitude to successfully
2-10     complete the requirements for obtaining a postsecondary degree.
2-11           (c)  A program participant is eligible for medical assistance
2-12     under Chapter 32 and support services under Section 31.010 in the
2-13     same manner as a person receiving financial assistance.
2-14           (d)  The department by rule shall establish time limits and
2-15     other conditions applicable to a program participant, provided that
2-16     the department may not provide assistance to a program participant
2-17     for more than 48 months, and the department must require a program
2-18     participant to demonstrate satisfactory educational progress to
2-19     remain eligible for assistance.
2-20           (e)  The department shall fund the program from state funds
2-21     specifically appropriated for that purpose or from other state
2-22     funds otherwise available to the department for the program.  The
2-23     department shall establish and administer the program in such a
2-24     manner that money spent under the program is included in
2-25     determining the state's compliance with federal maintenance of
2-26     effort requirements under Part A, Title IV, Social Security Act (42
2-27     U.S.C. Section 601 et seq.).
 3-1           (f)  Not later than January 15, 2003, the department shall
 3-2     submit to the legislature a report relating to the pilot program
 3-3     established under this section. The report must include:
 3-4                 (1)  an evaluation of the program's effectiveness in
 3-5     improving employability of persons eligible for Temporary
 3-6     Assistance for Needy Families (TANF) benefits; and
 3-7                 (2)  recommendations from the department concerning
 3-8     termination, continuation, or expansion of the program.
 3-9           (g)  This section expires September 1, 2003.
3-10           SECTION 2.  If before implementing any provision of this Act
3-11     a state agency determines that a waiver or authorization from a
3-12     federal agency is necessary for implementation, the state agency
3-13     shall request the waiver or authorization and may delay
3-14     implementing that provision until the waiver or authorization is
3-15     granted.
3-16           SECTION 3.  The importance of this legislation and the
3-17     crowded condition of the calendars in both houses create an
3-18     emergency and an imperative public necessity that the
3-19     constitutional rule requiring bills to be read on three several
3-20     days in each house be suspended, and this rule is hereby suspended,
3-21     and that this Act take effect and be in force from and after its
3-22     passage, and it is so enacted.