By Carona                                              S.B. No. 554
         77R5788 JSA-F                           
                                A BILL TO BE ENTITLED
 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
 2-1     established under this chapter.
 2-2                 (4)  "Public junior college" and "public technical
 2-3     institute" have the meanings assigned by Section 61.003, Education
 2-4     Code.
 2-5                 (5)  "Qualified education program" means a
 2-6     postsecondary education program that meets the requirements
 2-7     provided by Section 305.024.
 2-8              (Sections 305.003-305.020 reserved for expansion
 2-9                        SUBCHAPTER B.  GRANT PROGRAM
2-10           Sec. 305.021.  TUITION ASSISTANCE GRANT; AMOUNT OF GRANT.
2-11     (a)  The commission may provide tuition assistance grants to Texas
2-12     residents enrolled in a qualified education program at an eligible
2-13     institution.
2-14           (b)  In selecting applicants to receive grants under this
2-15     chapter and the amount of the grant for each applicant, the
2-16     commission shall consider:
2-17                 (1)  the financial need and resources of an applicant;
2-18                 (2)  the state's need for workforce development in the
2-19     applicant's proposed career field;
2-20                 (3)  the efficient use of the money available for
2-21     grants;
2-22                 (4)  the fair allocation of grants to promote workforce
2-23     development in different career fields;
2-24                 (5)  the opportunity of applicants from all regions of
2-25     this state to receive financial assistance under this chapter; and
2-26                 (6)  any other factor the commission considers
2-27     appropriate to further the purposes of this chapter.
 3-1           Sec. 305.022.  LIMITATIONS ON GRANT AMOUNT.  (a)  The amount
 3-2     of a grant under this chapter may not exceed the lower of:
 3-3                 (1)  the maximum grant amount, if any, specified by the
 3-4     legislature in an appropriation act; or
 3-5                 (2)  the amount by which the tuition and required fees
 3-6     at the eligible institution attended exceeds the average amount of
 3-7     tuition and required fees that would be charged at a public junior
 3-8     college or public technical institute, as determined by the
 3-9     commission based on information provided by the coordinating board.
3-10           (b)  The total amount of grants paid under this chapter on
3-11     behalf of a student during a state fiscal year may not exceed an
3-12     amount equal to 50 percent of the average state appropriation in
3-13     the biennium preceding the biennium in which the grant is made for
3-14     a full-time student or the equivalent at a public junior college or
3-15     public technical institute, as determined by the coordinating board
3-16     and certified to the commission.
3-17           (c)  The amount of a grant to a part-time student shall be
3-18     made on a pro-rata basis in relation to the amount of the grant the
3-19     person would be entitled to receive if enrolled as a full-time
3-20     student.
3-21           Sec. 305.023.  APPROVAL OF INSTITUTIONS.  The commission
3-22     shall approve a proprietary school for its students to participate
3-23     in the grant program established under this chapter if the school:
3-24                 (1)  has been accredited for not less than five years
3-25     by an accrediting agency recognized by the United States Department
3-26     of Education and maintains that accreditation; and
3-27                 (2)  offers one or more qualified education programs.
 4-1           Sec. 305.024.  QUALIFIED EDUCATION PROGRAMS.  For purposes of
 4-2     this chapter, a qualified education program is a postsecondary
 4-3     course of instruction in a specific career field that:
 4-4                 (1)  is at least one academic year in length as defined
 4-5     by the United States Department of Education; and
 4-6                 (2)  leads to a certificate, certification, degree, or
 4-7     diploma in the career field.
 4-8           Sec. 305.025.  NONDISCRIMINATION.  The commission in
 4-9     administering this chapter shall ensure compliance with Title VI,
4-10     Civil Rights Act of 1964 (42 U.S.C. Section 2000d et seq.), in
4-11     regard to nondiscrimination under any program or activity receiving
4-12     federal financial assistance.
4-13           Sec. 305.026.  APPLICATION; ELIGIBILITY FOR GRANT.  (a)  To
4-14     receive a grant under this chapter, a person must apply to the
4-15     commission in the manner provided by commission rule.
4-16           (b)  To be eligible to receive a grant under this chapter, an
4-17     applicant must:
4-18                 (1)  be a Texas resident and meet the requirements to
4-19     qualify as a Texas resident under Subchapter B, Chapter 54,
4-20     Education Code, and the rules of the coordinating board for the
4-21     payment of resident tuition at a public institution of higher
4-22     education;
4-23                 (2)  be enrolled in a qualified education program at an
4-24     eligible institution for at least one-half of a full course load;
4-25                 (3)  be required to pay more tuition and required fees
4-26     than the amount required at a public junior college or public
4-27     technical institute and be charged not less than the regular
 5-1     tuition and required fees paid by other students enrolled at the
 5-2     eligible institution the person attends;
 5-3                 (4)  establish financial need and eligibility for
 5-4     student financial assistance in accordance with procedures and
 5-5     regulations of the United States Department of Education for
 5-6     financial aid programs under Title IV, Higher Education Act of 1965
 5-7     (20 U.S.C. Section 1070 et seq.);
 5-8                 (5)  not be in default on a loan made under the Federal
 5-9     Perkins Loan Program, Federal Family Education Loan Program, or
5-10     William D. Ford Federal Direct Loan Program;
5-11                 (6)  not owe a refund on a grant received under the
5-12     federal Pell Grant program or the federal Supplemental Education
5-13     Opportunity Grant program; and
5-14                 (7)  comply with any other requirements adopted by the
5-15     commission under this chapter.
5-16           Sec. 305.027.  PAYMENT OF GRANT.  (a)  On receipt of an
5-17     enrollment report for a student awarded a grant under this chapter
5-18     and certification of the amount of the student's financial need
5-19     from the approved institution, the commission shall certify the
5-20     amount of the grant awarded to the student.
5-21           (b)  The grant shall be paid to the student through the
5-22     eligible institution in which the student is enrolled.
5-23           Sec. 305.028.  ADOPTION AND DISTRIBUTION OF RULES.  (a)  The
5-24     commission may adopt reasonable rules to administer and enforce
5-25     this chapter.
5-26           (b)  The commission shall distribute a copy of the rules to
5-27     each eligible institution.
 6-1           Sec. 305.029.  ANNUAL REPORT.  The commission shall prepare
 6-2     an annual report regarding the grant program established under this
 6-3     chapter.  The report shall include for the period covered by the
 6-4     report:
 6-5                 (1)  the number of students who received grants under
 6-6     this chapter; and
 6-7                 (2)  the number of those students who attended each
 6-8     eligible institution, including information on the race or
 6-9     ethnicity of those students attending each institution.
6-10           Sec. 305.030.  INITIAL IMPLEMENTATION.  (a)  The commission
6-11     may award grants under this chapter for the 2001-2002 academic year
6-12     only to a person attending the person's first academic year at an
6-13     eligible institution.
6-14           (b)  The commission may award grants under this chapter for
6-15     the 2002-2003 academic year only to a person attending the person's
6-16     first or second academic year at an eligible institution.
6-17           (c)  This section expires January 1, 2004.
6-18           SECTION 2.  This Act takes effect immediately if it receives
6-19     a vote of two-thirds of all the members elected to each house, as
6-20     provided by Section 39, Article III, Texas Constitution.  If this
6-21     Act does not receive the vote necessary for immediate effect, this
6-22     Act takes effect September 1, 2001.