By: J. Davis of Harris, et al. H.B. No. 437
(Senate Sponsor - Seliger)
(In the Senate - Received from the House April 8, 2013;
April 18, 2013, read first time and referred to Committee on Higher
Education; May 16, 2013, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
May 16, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 437 By: Seliger
A BILL TO BE ENTITLED
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.
(c) Subchapter Q, 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.
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