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.
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