H.B. No. 437
 
 
 
 
AN ACT
  relating to career and technical education and workforce
  development grant programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 134.004, Education Code, is amended to
  read as follows:
         Sec. 134.004.  JOBS AND EDUCATION FOR TEXANS (JET) GRANT
  PROGRAM. (a) The comptroller shall establish and administer the
  Jobs and Education for Texans (JET) Grant Program to provide grants
  to public junior colleges and [,] public technical institutes[, and
  eligible nonprofit organizations] that apply to the advisory board
  in the manner prescribed by the advisory board.  The comptroller
  shall award the grants on the advice and recommendations of the
  advisory board. 
         (b)  Grants may be awarded under this chapter from the Jobs
  and Education for Texans (JET) fund [for the following purposes:
               [(1)     to develop, support, or expand programs of
  nonprofit organizations that meet the requirements of Section
  134.005 and that prepare low-income students for careers in
  high-demand occupations;
               [(2)]  to defray the start-up costs associated with the
  development of new career and technical education programs at
  public junior colleges and public technical institutes that meet
  the requirements of Section 134.006[; and
               [(3)   to provide scholarships for students in career and
  technical education programs who meet the requirements of Section
  134.007].
         SECTION 2.  Subtitle G, Title 3, Education Code, is amended
  by adding Chapter 136 to read as follows:
  CHAPTER 136. TEXAS INNOVATIVE ADULT CAREER EDUCATION GRANT PROGRAM
         Sec. 136.001.  DEFINITIONS. In this chapter:
               (1)  "Nonprofit organization" means an organization
  exempt from federal income taxation under Section 501(a), Internal
  Revenue Code of 1986, as an organization described by Section
  501(c)(3) of that code.
               (2)  "Nonprofit workforce intermediary and job
  training organization" means a nonprofit organization that engages
  in comprehensive long-term job training in partnership with a
  public junior college, public state college, or public technical
  institute and provides labor market intermediary services to
  participant students.
               (3)  "Program" means the Texas Innovative Adult Career
  Education (ACE) Grant Program established under Section 136.005.
               (4)  "Public junior college," "public state college,"
  and "public technical institute" have the meanings assigned by
  Section 61.003.
         Sec. 136.002.  GRANT ADMINISTRATOR. (a) The Texas Higher
  Education Coordinating Board shall designate the governing board of
  a junior college district primarily located in a municipality with
  a population of 750,000 or more that is primarily located in a
  county with a population of 1.5 million or less as the grant
  administrator of the program, including the funds available under
  Section 136.003.
         (b)  The grant administrator may participate in the program
  if the grant administrator is otherwise an eligible organization
  under Section 136.006.
         Sec. 136.003.  TEXAS INNOVATIVE ADULT CAREER EDUCATION (ACE)
  GRANT FUND. (a) The comptroller shall establish the Texas
  Innovative Adult Career Education (ACE) Grant fund as a dedicated
  account in the general revenue fund.
         (b)  The following amounts shall be deposited in the fund:
               (1)  any amounts appropriated by the legislature for
  the fund for purposes of this chapter;
               (2)  interest earned on the investment of money in the
  fund; and
               (3)  gifts, grants, and other donations received for
  the fund.
         Sec. 136.004.  PROGRAM ADVISORY BOARD. (a) The grant
  administrator shall establish a program advisory board that
  provides input and recommendations for the awarding of grants under
  this chapter.
         (b)  The program advisory board must be composed of members
  representing the philanthropic community, the business employer
  community, and public junior colleges and public technical
  institutes and must include the mayor of one of the five most
  populous municipalities in this state. The grant administrator may
  appoint a nonvoting, ex officio member to the program advisory
  board. The program advisory board shall elect a chair of the board
  from among its members.
         (c)  The program advisory board shall provide oversight to
  ensure that the grant administrator:
               (1)  establishes and adheres to an appropriate system
  that provides acceptable standards for ensuring accountability in
  the awarding and monitoring of grants;
               (2)  enters into a written grant agreement or contract
  with each grantee that establishes clear goals and obligations in
  unambiguous terms;
               (3)  acts with due diligence to monitor the
  implementation of a grant agreement, including carrying out
  appropriate monitoring activities including reviews at reasonable
  intervals; and
               (4)  takes prompt and appropriate corrective action on
  becoming aware of any evidence of a violation by a grantee of this
  chapter or of rules adopted under this chapter.
         (d)  The program advisory board shall meet as needed to
  review received grant applications and make recommendations to the
  grant administrator regarding awarding grants under this chapter.
         Sec. 136.005.  TEXAS INNOVATIVE ADULT CAREER EDUCATION (ACE)
  GRANT PROGRAM. (a) The grant administrator shall establish and
  administer the Texas Innovative Adult Career Education (ACE) Grant
  Program to provide grants to eligible nonprofit workforce
  intermediary and job training organizations. In awarding grants
  under the program, the grant administrator shall take into
  consideration the recommendations of the program advisory board.
         (b)  Grants may be awarded under this chapter from the Texas
  Innovative Adult Career Education (ACE) Grant fund only to develop,
  support, or expand programs of eligible nonprofit workforce
  intermediary and job training organizations to prepare low-income
  students to enter careers in high-demand and significantly
  higher-earning occupations.
         Sec. 136.006.  ELIGIBLE ORGANIZATIONS. (a) To be eligible
  for a grant under the program, a nonprofit workforce intermediary
  and job training organization must:
               (1)  apply to the grant administrator in the manner
  prescribed by the grant administrator;
               (2)  provide to eligible low-income students, in
  partnership with public junior colleges, public state colleges, or
  public technical institutes:
                     (A)  job training; and
                     (B)  a continuum of services designed to move a
  program participant from application to employment, including
  outreach, assessment, case management, support services, and
  career placement;
               (3)  be governed by a board or other governing
  structure that includes recognized leaders of broad-based
  community organizations and executive-level or managerial-level
  members of the local business community;
               (4)  demonstrate to the satisfaction of the program
  advisory board that the organization's program has achieved or will
  achieve the following measures of success among program
  participants:
                     (A)  above-average completion of developmental
  education among participating public junior college, public state
  college, or public technical institute students;
                     (B)  above-average persistence rates among
  participating public junior college, public state college, or
  public technical institute students;
                     (C)  above-average certificate or degree
  completion rates by participating students within a three-year
  period compared to demographically comparable public junior
  college, public state college, and public technical institute
  students; and
                     (D)  entry into careers with significantly higher
  earnings for program participants than previously achieved; and
               (5)  provide matching funds in accordance with rules
  adopted under this chapter.
         (b)  The matching funds required under Subsection (a)(5) may
  be obtained from any source available to the organization,
  including in-kind contributions, community or foundation grants,
  individual contributions, and local governmental agency operating
  funds. The grant administrator may adopt rules requiring an
  organization to demonstrate compliance with the matching funds
  requirement before the payment of the next installment under an
  awarded grant.
         Sec. 136.007.  RULES. (a) The grant administrator shall
  adopt rules as necessary for the administration of this chapter in
  the manner provided by Chapter 2001, Government Code, for a state
  agency.
         (b)  The grant administrator, with recommendations of the
  program advisory board, shall adopt rules regarding eligibility,
  program tuition and fees, administrative costs, matching funds, and
  case management and other supports for the program. The rules may
  include provisions for the payment in periodic installments of
  grant awards.
         SECTION 3.  (a) Sections 134.001(1), 134.005, and 134.007,
  Education Code, are repealed.
         (b)  Subchapter O, Chapter 403, Government Code, is
  repealed.
         SECTION 4.  A person receiving a scholarship or other
  financial assistance under Chapter 134, Education Code, or
  Subchapter O, Chapter 403, Government Code, before the effective
  date of this Act for the 2013-2014 academic year may continue to
  receive a scholarship or other financial assistance under that law
  as applicable to the person immediately before that date, until the
  person is no longer eligible for the scholarship or other
  assistance under Chapter 134, Education Code, or Subchapter O,
  Chapter 403, Government Code, as the applicable law exists on
  January 1, 2013, and the former law is continued in effect for that
  purpose.
         SECTION 5.  The Texas Higher Education Coordinating Board
  shall designate a grant administrator as required by Section
  136.002, Education Code, as added by this Act, as soon as possible
  after the effective date of this Act.
         SECTION 6.  Grants provided under the Texas Innovative Adult
  Career Education (ACE) Grant Program established under Chapter 136,
  Education Code, as added by this Act, may benefit only a permanent
  legal resident or citizen of the United States.
         SECTION 7.  This Act does not make an appropriation. This
  Act takes effect regardless of whether a specific appropriation for
  the implementation of this Act is provided in a general
  appropriations act of the 83rd Legislature.
         SECTION 8.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 437 was passed by the House on April
  4, 2013, by the following vote:  Yeas 146, Nays 1, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 437 on May 24, 2013, by the following vote:  Yeas 143, Nays 0, 3
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 437 was passed by the Senate, with
  amendments, on May 22, 2013, by the following vote:  Yeas 30, Nays
  1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor