1-1                                   AN ACT
 1-2     relating to grants by the Texas Workforce Commission to assist
 1-3     economically disadvantaged persons enrolled in qualified
 1-4     postsecondary career education programs.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subtitle B, Title 4, Labor Code, is amended by
 1-7     adding Chapter 305 to read as follows:
 1-8            CHAPTER 305.  TEXAS CAREER OPPORTUNITY GRANT PROGRAM
 1-9                      SUBCHAPTER A.  GENERAL PROVISIONS
1-10           Sec. 305.001.  PURPOSE.  The purpose of the Texas Career
1-11     Opportunity Grant Program is to help ensure a qualified workforce
1-12     to meet the needs of this state by reducing the financial barriers
1-13     to postsecondary career education and training for economically
1-14     disadvantaged Texans.
1-15           Sec. 305.002.  DEFINITIONS.  In this chapter:
1-16                 (1)  "Commission" means the Texas Workforce Commission.
1-17                 (2)  "Coordinating board" means the Texas Higher
1-18     Education Coordinating Board.
1-19                 (3)  "Eligible institution" means a proprietary school
1-20     in this state that:
1-21                       (A)  holds a certificate of approval under
1-22     Chapter 132, Education Code; and
1-23                       (B)  is approved by the commission under Section
1-24     305.023 for its students to participate in the grant program
1-25     established under this chapter.
 2-1                 (4)  "Public technical institute" has the meaning
 2-2     assigned by Section 61.003, Education Code.
 2-3                 (5)  "Qualified education program" means a
 2-4     postsecondary education program that meets the requirements
 2-5     provided by Section 305.024.
 2-6              (Sections 305.003-305.020 reserved for expansion
 2-7                        SUBCHAPTER B.  GRANT PROGRAM
 2-8           Sec. 305.021.  TUITION ASSISTANCE GRANT; AMOUNT OF GRANT.
 2-9     (a)  The commission may provide tuition assistance grants to Texas
2-10     residents enrolled in a qualified education program at an eligible
2-11     institution.
2-12           (b)  In selecting applicants to receive grants under this
2-13     chapter and the amount of the grant for each applicant, the
2-14     commission may consider:
2-15                 (1)  the financial need and resources of an applicant;
2-16                 (2)  the state's need for workforce development in the
2-17     applicant's proposed career field;
2-18                 (3)  the efficient use of the money available for
2-19     grants;
2-20                 (4)  the fair allocation of grants to promote workforce
2-21     development in different career fields;
2-22                 (5)  the opportunity of applicants from all regions of
2-23     this state to receive financial assistance under this chapter; and
2-24                 (6)  any other factor the commission considers
2-25     appropriate to further the purposes of this chapter.
2-26           Sec. 305.022.  LIMITATIONS ON GRANT AMOUNT.  (a)  The amount
 3-1     of a grant under this chapter may not exceed the lower of:
 3-2                 (1)  the maximum grant amount, if any, specified by the
 3-3     legislature in an appropriation act; or
 3-4                 (2)  the amount by which the tuition and required fees
 3-5     at the eligible institution attended exceeds the average amount of
 3-6     tuition and required fees that would be charged at a public
 3-7     technical institute, as determined by the commission based on
 3-8     information provided by the coordinating board.
 3-9           (b)  The total amount of grants paid under this chapter on
3-10     behalf of a student during a state fiscal year may not exceed an
3-11     amount equal to 50 percent of the average state appropriation in
3-12     the biennium preceding the biennium in which the grant is made for
3-13     a full-time student or the equivalent at a public technical
3-14     institute, as determined by the coordinating board and certified to
3-15     the commission.
3-16           (c)  The amount of a grant to a part-time student shall be
3-17     made on a pro rata basis in relation to the amount of the grant the
3-18     person would be entitled to receive if enrolled as a full-time
3-19     student.
3-20           Sec. 305.023.  APPROVAL OF INSTITUTIONS.  The commission
3-21     shall approve a proprietary school for its students to participate
3-22     in the grant program established under this chapter if the school:
3-23                 (1)  has been accredited for not less than five years
3-24     by an accrediting agency recognized by the United States Department
3-25     of Education and maintains that accreditation;
3-26                 (2)  has held a certificate of approval under Chapter
 4-1     132, Education Code, for at least five years; and
 4-2                 (3)  offers one or more qualified education programs.
 4-3           Sec. 305.024.  QUALIFIED EDUCATION PROGRAMS.  For purposes of
 4-4     this chapter, a qualified education program is a postsecondary
 4-5     course of instruction in a specific career field that:
 4-6                 (1)  is at least one academic year in length as defined
 4-7     by the United States Department of Education; and
 4-8                 (2)  leads to a certificate, certification, degree, or
 4-9     diploma in the career field.
4-10           Sec. 305.025.  NONDISCRIMINATION.  The commission in
4-11     administering this chapter shall ensure compliance with Title VI,
4-12     Civil Rights Act of 1964 (42 U.S.C. Section 2000d et seq.), as
4-13     amended, in regard to nondiscrimination under any program or
4-14     activity receiving federal financial assistance.
4-15           Sec. 305.026.  APPLICATION; ELIGIBILITY FOR GRANT.  (a)  To
4-16     receive a grant under this chapter, a person must apply to the
4-17     eligible institution in which the person enrolls in the manner
4-18     provided by commission rule.
4-19           (b)  To be eligible to receive a grant under this chapter, an
4-20     applicant must:
4-21                 (1)  be a Texas resident and meet the requirements to
4-22     qualify as a Texas resident under Subchapter B, Chapter 54,
4-23     Education Code, and the rules of the coordinating board for the
4-24     payment of resident tuition at a public institution of higher
4-25     education;
4-26                 (2)  be enrolled in a qualified education program at an
 5-1     eligible institution for at least one-half of a full course load;
 5-2                 (3)  be required to pay more tuition and required fees
 5-3     than the amount required at a public technical institute and be
 5-4     charged not less than the regular tuition and required fees paid by
 5-5     other students enrolled at the eligible institution the person
 5-6     attends;
 5-7                 (4)  establish financial need and eligibility for
 5-8     student financial assistance in accordance with procedures and
 5-9     regulations of the United States Department of Education for
5-10     financial aid programs under Title IV, Higher Education Act of 1965
5-11     (20 U.S.C. Section 1070 et seq.), as amended;
5-12                 (5)  not be in default on a loan made under the Federal
5-13     Perkins Loan Program, Federal Family Education Loan Program, or
5-14     William D. Ford Federal Direct Loan Program;
5-15                 (6)  not owe a refund on a grant received under the
5-16     federal Pell Grant program or the federal Supplemental Education
5-17     Opportunity Grant program; and
5-18                 (7)  comply with any other requirements adopted by the
5-19     commission under this chapter.
5-20           Sec. 305.027.  PAYMENT OF GRANT.  (a)  On receipt of an
5-21     enrollment report for a student awarded a grant under this chapter
5-22     and certification of the amount of the student's financial need
5-23     from the approved institution, the commission shall certify the
5-24     amount of the grant awarded to the student.
5-25           (b)  The grant shall be paid to the student through the
5-26     eligible institution in which the student is enrolled.
 6-1           Sec. 305.028.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
 6-2     commission may adopt reasonable rules to administer and enforce
 6-3     this chapter.
 6-4           (b)  The commission shall distribute a copy of the rules to
 6-5     each eligible institution.
 6-6           Sec. 305.029.  ANNUAL REPORT.  The commission shall prepare
 6-7     and deliver to the legislature an annual report regarding the grant
 6-8     program established under this chapter.  The report shall include
 6-9     for the period covered by the report:
6-10                 (1)  the number of students who received grants under
6-11     this chapter; and
6-12                 (2)  the number of those students who attended each
6-13     eligible institution, including information on the race or
6-14     ethnicity of those students attending each institution.
6-15           Sec. 305.030.  INITIAL IMPLEMENTATION.  (a)  The commission
6-16     may award grants under this chapter for the 2001-2002 academic year
6-17     only to a person attending the person's first academic year at an
6-18     eligible institution.
6-19           (b)  The commission may award grants under this chapter for
6-20     the 2002-2003 academic year only to a person attending the person's
6-21     first or second academic year at an eligible institution.
6-22           (c)  This section expires January 1, 2004.
6-23           SECTION 2.  (a)  This Act takes effect on September 1, 2001.
6-24           (b)  The Texas Workforce Commission may award grants under
6-25     the Texas Career Opportunity Grant Program established by Chapter
6-26     305, Labor Code, as added by this Act, in the state fiscal biennium
 7-1     ending August 31, 2003, only from:
 7-2                 (1)  money specifically appropriated for that biennium
 7-3     to fund the grant program; or
 7-4                 (2)  other money available to the commission from a
 7-5     source other than general revenue if the use of that money for that
 7-6     purpose is permitted by applicable law.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 554 passed the Senate on
         March 22, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 554 passed the House on
         May 18, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor