HBA-EDN H.B. 1873 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1873
By: Solis, Jim
Economic Development
2/25/2001
Introduced



BACKGROUND AND PURPOSE 

Across the state of Texas there is a shortage of experienced skilled
workers in the labor force.  The economy requires the state to maintain a
higher skilled workforce than ever before if Texas is to keep pace with the
nation's economy.  Currently, Texas does not have a grant program in place
to provide financial assistance to students attending technical or
vocational schools, while students who attend universities, colleges,
junior colleges, and community colleges already have access to such grants.
House Bill 1873 creates The Texas Career Opportunity Grant Program to be
administered by the Texas Workforce Commission for students attending
private technical or vocational schools.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Workforce Commission in
SECTION 1 (Sections 305.026 and 305.028, Labor Code) of this bill. 

ANALYSIS

House Bill 1873 amends the Labor Code to authorize the Texas Workforce
Commission (TWC) to provide, under the Texas Career Opportunity Grant
Program, tuition assistance grants to Texas residents enrolled in a
qualified education program at an eligible institution.  In selecting
applicants to receive grants and determining the amount of each grant, TWC
is required to consider the following criteria: 

_the financial need and resources of an applicant;

_the state's need for workforce development in the applicant's proposed
career field; 

_the efficient use of the money available for grants;

_the fair allocation of grants to promote workforce development in
different fields; 

_the opportunity of applicants from all regions of this state to receive
financial assistance; and 

_any other factor TWC considers appropriate.

The bill sets forth limitations for the amount of a grant awarded to a
student and the total amount of grants paid on behalf of a student during a
state fiscal year.  The bill requires TWC to approve a proprietary school
for its students to participate in the grant program if the school has been
accredited for not less than five years by an agency recognized by the
United States Department of Education, maintains that accreditation, and
offers one or more qualified education programs.  The bill requires TWC to
ensure compliance with federal law in administering these provisions in
regard to nondiscrimination under any program or activity receiving federal
financial assistance.   

The bill sets forth eligibility requirements for a person to receive a
grant and procedures for payment of the  grant to a student.  The bill
authorizes TWC to adopt reasonable rules to administer and enforce these
provisions and requires TWC to distribute a copy of the rules to each
eligible institution.  The bill requires TWC to prepare an annual report
with information concerning the Texas Career Opportunity Grant Program. 
  
TWC is authorized to award grants for the 2001-2002 academic year only to a
person attending the person's first academic year, and for the 2002-2003
academic year, only to a person attending the person's first or second
academic year.  These provisions expire January 1, 2004.       

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.