By Olivo                                              H.B. No. 1187
         77R3271 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the Parents as Scholars pilot program for certain
 1-3     persons eligible to receive financial assistance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 31.045, Human Resources Code, is amended
 1-6     to read as follows:
 1-7           Sec. 31.045.  PARENTS AS SCHOLARS PILOT PROGRAM. (a)  Subject
 1-8     to available funding, the [The] department shall [may] by rule
 1-9     establish a [student financial aid pilot program, entitled the]
1-10     Parents as Scholars pilot program[,] under which [the department,
1-11     with the cooperation of the Texas Higher Education Coordinating
1-12     Board, assists] certain persons eligible for [recipients of]
1-13     financial assistance receive, instead of financial assistance, a
1-14     package of benefits designed to assist the persons in obtaining a
1-15     postsecondary degree or certificate from an institution of higher
1-16     education.  The benefits provided may include assistance with
1-17     payment of:
1-18                 (1)  tuition and fees;
1-19                 (2)  the costs of textbooks and other educational
1-20     supplies; and
1-21                 (3)  other costs associated with enrollment in an
1-22     institution of higher education [in obtaining student financial aid
1-23     available under Subchapter M, Chapter 56, Education Code.  If the
1-24     department establishes the program, the department and the
 2-1     coordinating board must comply with the requirements of this
 2-2     section].
 2-3           (b)  The department by rule shall establish eligibility
 2-4     criteria for the program.  The criteria must:
 2-5                 (1)  require that a program participant meet[:]
 2-6                       [(A)]  the eligibility criteria for financial
 2-7     assistance [at the time that the person begins participation in the
 2-8     program; and]
 2-9                       [(B)  the eligibility requirements for a TEXAS
2-10     grant under Subchapter M, Chapter 56, Education Code];
2-11                 (2)  prohibit a person who possesses a bachelor's
2-12     degree from an institution of higher education from participating
2-13     in the program;
2-14                 (3)  require that a [the] program participant seek a
2-15     postsecondary [an undergraduate] degree or certificate that the
2-16     department[, in cooperation with the Texas Higher Education
2-17     Coordinating Board,] considers likely to improve the participant's
2-18     ability to obtain employment in the participant's local labor
2-19     market; and
2-20                 (4) [(3)]  be designed to result in the selection of
2-21     program participants who:
2-22                       (A)  are currently unable, due to a lack of
2-23     skills and training, to obtain employment at a compensation level
2-24     equal to at least 85 percent of the area median income; and
2-25                       (B)  demonstrate the aptitude to successfully
2-26     complete the requirements for obtaining a postsecondary [an
2-27     undergraduate] degree or certificate.
 3-1           (c)  A program participant is eligible for medical assistance
 3-2     under Chapter 32 and support services under Section 31.010 in the
 3-3     same manner as a person receiving financial assistance.
 3-4           (d)  The department by rule shall establish time limits and
 3-5     other conditions applicable to a program participant, provided that
 3-6     the department may not provide assistance to a program participant
 3-7     for more than 48 months, and the department must require a program
 3-8     participant to demonstrate satisfactory educational progress to
 3-9     remain eligible for assistance.
3-10           (e)  The department shall fund the program from state funds
3-11     specifically appropriated for that purpose or from other state
3-12     funds otherwise available to the department for the program. The
3-13     department shall establish and administer the program in such a
3-14     manner that money spent under the program is included in
3-15     determining the state's compliance with federal maintenance of
3-16     effort requirements under Part A, Title IV, Social Security Act (42
3-17     U.S.C. Section 601 et seq.).
3-18           (f)  The [Under the program, the] department may also
3-19     [shall]:
3-20                 (1)  advise a program participant [recipients of
3-21     financial assistance] of:
3-22                       (A)  the availability of financial aid under
3-23     Subchapter M, Chapter 56, Education Code, as added by Chapter 1590,
3-24     Acts of the 76th Legislature, Regular Session, 1999, and the
3-25     eligibility requirements for that aid; and
3-26                       (B)  [the need for recipients who are high school
3-27     students to make informed curriculum choices to be prepared for
 4-1     success beyond high school;]
 4-2                       [(C)]  sources of information on higher education
 4-3     admissions and financial aid[; and]
 4-4                       [(D)  eligibility criteria and application
 4-5     procedures for participation in the program]; and
 4-6                 (2)  assist a [recipient chosen to participate in the]
 4-7     program participant in obtaining any available financial aid
 4-8     [available under Subchapter M, Chapter 56, Education Code].
 4-9           [(d)  A program participant who obtains financial aid
4-10     available under Subchapter M, Chapter 56, Education Code, may
4-11     continue to receive financial aid as provided by that subchapter,
4-12     regardless of whether the participant ceases to receive financial
4-13     assistance.]
4-14           [(e)  The department may cooperate with the Legislative
4-15     Oversight Committee under Section 56.311, Education Code, by
4-16     providing information relating to program participants receiving
4-17     financial aid under Subchapter M, Chapter 56, Education Code, that
4-18     is necessary for the committee to perform its duty of monitoring
4-19     the financial aid programs established under that subchapter.]
4-20           [(f)  The department and the Texas Higher Education
4-21     Coordinating Board shall jointly develop procedures necessary for
4-22     administration of the program, including procedures for:]
4-23                 [(1)  determining and monitoring a program
4-24     participant's initial and continuing eligibility for financial aid
4-25     under Subchapter M, Chapter 56, Education Code;]
4-26                 [(2)  providing appropriate information to financial
4-27     aid officers of institutions of higher education; and]
 5-1                 [(3)  exchanging all necessary information between the
 5-2     department and the coordinating board, including copies of rules
 5-3     adopted by the coordinating board relating to the administration of
 5-4     the financial aid programs under Subchapter M, Chapter 56,
 5-5     Education Code.]
 5-6           (g)  Not later than January 15, 2005 [2001], the department
 5-7     shall submit to the legislature a report relating to the program
 5-8     established under this section.  The report must include:
 5-9                 (1)  an evaluation of the program's effectiveness in
5-10     improving employability of persons eligible for financial
5-11     assistance; and
5-12                 (2)  recommendations from the department concerning
5-13     termination, continuation, or expansion of the program.
5-14           (h)  This section [takes effect only if H.B. 713, Acts of the
5-15     76th Legislature, Regular Session, 1999, is enacted and becomes
5-16     law.  If this section takes effect, it] expires September 1, 2005
5-17     [2003].
5-18           SECTION 2. If before implementing any provision of this Act a
5-19     state agency determines that a waiver or authorization from a
5-20     federal agency is necessary for implementation of that provision,
5-21     the agency affected by the provision shall request the waiver or
5-22     authorization and may delay implementing that provision until the
5-23     waiver or authorization is granted.
5-24           SECTION 3. This Act takes effect September 1, 2001.