1-1 By: Carona, et al. S.B. No. 554 1-2 (In the Senate - Filed February 6, 2001; February 7, 2001, 1-3 read first time and referred to Committee on Business and Commerce; 1-4 March 15, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 6, Nays 0; March 15, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 554 By: Carona 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to grants by the Texas Workforce Commission to assist 1-11 economically disadvantaged persons enrolled in qualified 1-12 postsecondary career education programs. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Subtitle B, Title 4, Labor Code, is amended by 1-15 adding Chapter 305 to read as follows: 1-16 CHAPTER 305. TEXAS CAREER OPPORTUNITY GRANT PROGRAM 1-17 SUBCHAPTER A. GENERAL PROVISIONS 1-18 Sec. 305.001. PURPOSE. The purpose of the Texas Career 1-19 Opportunity Grant Program is to help ensure a qualified workforce 1-20 to meet the needs of this state by reducing the financial barriers 1-21 to postsecondary career education and training for economically 1-22 disadvantaged Texans. 1-23 Sec. 305.002. DEFINITIONS. In this chapter: 1-24 (1) "Commission" means the Texas Workforce Commission. 1-25 (2) "Coordinating board" means the Texas Higher 1-26 Education Coordinating Board. 1-27 (3) "Eligible institution" means a proprietary school 1-28 in this state that: 1-29 (A) holds a certificate of approval under 1-30 Chapter 132, Education Code; and 1-31 (B) is approved by the commission under Section 1-32 305.023 for its students to participate in the grant program 1-33 established under this chapter. 1-34 (4) "Public technical institute" has the meaning 1-35 assigned by Section 61.003, Education Code. 1-36 (5) "Qualified education program" means a 1-37 postsecondary education program that meets the requirements 1-38 provided by Section 305.024. 1-39 (Sections 305.003-305.020 reserved for expansion 1-40 SUBCHAPTER B. GRANT PROGRAM 1-41 Sec. 305.021. TUITION ASSISTANCE GRANT; AMOUNT OF GRANT. 1-42 (a) The commission may provide tuition assistance grants to Texas 1-43 residents enrolled in a qualified education program at an eligible 1-44 institution. 1-45 (b) In selecting applicants to receive grants under this 1-46 chapter and the amount of the grant for each applicant, the 1-47 commission may consider: 1-48 (1) the financial need and resources of an applicant; 1-49 (2) the state's need for workforce development in the 1-50 applicant's proposed career field; 1-51 (3) the efficient use of the money available for 1-52 grants; 1-53 (4) the fair allocation of grants to promote workforce 1-54 development in different career fields; 1-55 (5) the opportunity of applicants from all regions of 1-56 this state to receive financial assistance under this chapter; and 1-57 (6) any other factor the commission considers 1-58 appropriate to further the purposes of this chapter. 1-59 Sec. 305.022. LIMITATIONS ON GRANT AMOUNT. (a) The amount 1-60 of a grant under this chapter may not exceed the lower of: 1-61 (1) the maximum grant amount, if any, specified by the 1-62 legislature in an appropriation act; or 1-63 (2) the amount by which the tuition and required fees 1-64 at the eligible institution attended exceeds the average amount of 2-1 tuition and required fees that would be charged at a public 2-2 technical institute, as determined by the commission based on 2-3 information provided by the coordinating board. 2-4 (b) The total amount of grants paid under this chapter on 2-5 behalf of a student during a state fiscal year may not exceed an 2-6 amount equal to 50 percent of the average state appropriation in 2-7 the biennium preceding the biennium in which the grant is made for 2-8 a full-time student or the equivalent at a public technical 2-9 institute, as determined by the coordinating board and certified to 2-10 the commission. 2-11 (c) The amount of a grant to a part-time student shall be 2-12 made on a pro rata basis in relation to the amount of the grant the 2-13 person would be entitled to receive if enrolled as a full-time 2-14 student. 2-15 Sec. 305.023. APPROVAL OF INSTITUTIONS. The commission 2-16 shall approve a proprietary school for its students to participate 2-17 in the grant program established under this chapter if the school: 2-18 (1) has been accredited for not less than five years 2-19 by an accrediting agency recognized by the United States Department 2-20 of Education and maintains that accreditation; 2-21 (2) has held a certificate of approval under Chapter 2-22 132, Education Code, for at least five years; and 2-23 (3) offers one or more qualified education programs. 2-24 Sec. 305.024. QUALIFIED EDUCATION PROGRAMS. For purposes of 2-25 this chapter, a qualified education program is a postsecondary 2-26 course of instruction in a specific career field that: 2-27 (1) is at least one academic year in length as defined 2-28 by the United States Department of Education; and 2-29 (2) leads to a certificate, certification, degree, or 2-30 diploma in the career field. 2-31 Sec. 305.025. NONDISCRIMINATION. The commission in 2-32 administering this chapter shall ensure compliance with Title VI, 2-33 Civil Rights Act of 1964 (42 U.S.C. Section 2000d et seq.), as 2-34 amended, in regard to nondiscrimination under any program or 2-35 activity receiving federal financial assistance. 2-36 Sec. 305.026. APPLICATION; ELIGIBILITY FOR GRANT. (a) To 2-37 receive a grant under this chapter, a person must apply to the 2-38 eligible institution in which the person enrolls in the manner 2-39 provided by commission rule. 2-40 (b) To be eligible to receive a grant under this chapter, an 2-41 applicant must: 2-42 (1) be a Texas resident and meet the requirements to 2-43 qualify as a Texas resident under Subchapter B, Chapter 54, 2-44 Education Code, and the rules of the coordinating board for the 2-45 payment of resident tuition at a public institution of higher 2-46 education; 2-47 (2) be enrolled in a qualified education program at an 2-48 eligible institution for at least one-half of a full course load; 2-49 (3) be required to pay more tuition and required fees 2-50 than the amount required at a public technical institute and be 2-51 charged not less than the regular tuition and required fees paid by 2-52 other students enrolled at the eligible institution the person 2-53 attends; 2-54 (4) establish financial need and eligibility for 2-55 student financial assistance in accordance with procedures and 2-56 regulations of the United States Department of Education for 2-57 financial aid programs under Title IV, Higher Education Act of 1965 2-58 (20 U.S.C. Section 1070 et seq.), as amended; 2-59 (5) not be in default on a loan made under the Federal 2-60 Perkins Loan Program, Federal Family Education Loan Program, or 2-61 William D. Ford Federal Direct Loan Program; 2-62 (6) not owe a refund on a grant received under the 2-63 Federal Pell Grant program or the federal Supplemental Education 2-64 Opportunity Grant program; and 2-65 (7) comply with any other requirements adopted by the 2-66 commission under this chapter. 2-67 Sec. 305.027. PAYMENT OF GRANT. (a) On receipt of an 2-68 enrollment report for a student awarded a grant under this chapter 2-69 and certification of the amount of the student's financial need 3-1 from the approved institution, the commission shall certify the 3-2 amount of the grant awarded to the student. 3-3 (b) The grant shall be paid to the student through the 3-4 eligible institution in which the student is enrolled. 3-5 Sec. 305.028. ADOPTION AND DISTRIBUTION OF RULES. (a) The 3-6 commission may adopt reasonable rules to administer and enforce 3-7 this chapter. 3-8 (b) The commission shall distribute a copy of the rules to 3-9 each eligible institution. 3-10 Sec. 305.029. ANNUAL REPORT. The commission shall prepare 3-11 and deliver to the legislature an annual report regarding the grant 3-12 program established under this chapter. The report shall include 3-13 for the period covered by the report: 3-14 (1) the number of students who received grants under 3-15 this chapter; and 3-16 (2) the number of those students who attended each 3-17 eligible institution, including information on the race or 3-18 ethnicity of those students attending each institution. 3-19 Sec. 305.030. INITIAL IMPLEMENTATION. (a) The commission 3-20 may award grants under this chapter for the 2001-2002 academic year 3-21 only to a person attending the person's first academic year at an 3-22 eligible institution. 3-23 (b) The commission may award grants under this chapter for 3-24 the 2002-2003 academic year only to a person attending the person's 3-25 first or second academic year at an eligible institution. 3-26 (c) This section expires January 1, 2004. 3-27 SECTION 2. This Act takes effect on September 1 of the first 3-28 state fiscal year for which money is specifically appropriated to 3-29 fund the grant program under Chapter 305, Labor Code, as added by 3-30 this Act. 3-31 * * * * *