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HOUSE BILL 3657 |
HOUSE AUTHOR: Oliveira et al. |
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EFFECTIVE: 9-1-99 |
SENATE SPONSOR: Sibley |
House Bill 3657 amends provisions of the Government Code and the Labor Code relating to certain workforce development programs, continues the funding and operation of the smart jobs fund program until December 31, 2001, and continues the skills development fund. The act specifies that the smart jobs fund program is created to enhance employment opportunities for Texas residents and to increase the job skills of the existing workforce by providing job training assistance to businesses operating in or relocating to Texas. The act requires the governing board of the Texas Department of Economic Development and the department to determine the means for accomplishing program goals.
The act requires the program to award grants for jobs that pay at least 100 percent of a county's average weekly wage and that are covered by a group health benefit plan for which the business pays at least 50 percent of the plan's employee-only coverage premiums and charges. The act establishes specific requirements for program expenditures and requires program funding to include amounts appropriated from the general revenue fund. The act requires the board to establish a scoring system that evaluates the economic impact of grant applications and reflects certain criteria, and it requires the executive director of the department to use the scoring system and a competitive process to award grants.
The act establishes a smart jobs rainy day fund as a special trust fund in the custody of the comptroller. The act requires the fund to remain separate from all other public money or funds and provides specific sources of money for the fund. The act authorizes the board to permit the director of the department to use money in the rainy day fund to supplement the smart jobs fund under certain conditions, including determination by the Texas Workforce Commission that a severe economic dislocation is occurring in a specific region. The act directs the commission to define "severe economic dislocation" and provides factors to be considered in the definition and other requirements concerning expenditures of the fund. The act limits annual expenditures from the smart jobs and the rainy day funds to the amount appropriated by the legislature for the operation of the smart jobs fund program.
The act deletes provisions relating to requirements for awarding grants, including those describing the legislative intent that funds from the program be spent in all areas of the state, regarding conditions under which the director may award grants of a certain amount and rate to a single employer, and relating to grants to minority employers. It exempts small and micro-businesses from certain requirements in the applications procedure, requires the board to establish a simplified application process for micro-businesses applying for grants, and requires the department to give priority to assisting small business or micro-business applicants.
The act adds and amends requirements regarding contracts made under the program and data to be included in annual reports made by the director to the governor and legislature at the end of each fiscal year on the status of the program, requires the comptroller to implement a biennial performance evaluation of the program, and includes specific provisions for the evaluation.
The act also prohibits employers from applying to participate simultaneously in both the skills development fund and the smart jobs fund unless certain application requirements are met.
The act requires the Texas Workforce Commission to transfer certain percentages of the holding fund to the skills development and rainy day funds in certain circumstances.