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.