By:  Oliveira                                          H.B. No. 666
       73R3626 PB-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the establishment, operation, and funding of an
    1-3  employment training program; reducing the entry level and
    1-4  replenishment unemployment tax rates; imposing an assessment for
    1-5  employment training purposes.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7                   ARTICLE I.  LEGISLATIVE FINDINGS
    1-8        SECTION 1.01.  LEGISLATIVE FINDINGS.  The legislature finds
    1-9  that:
   1-10              (1)  the development and expansion of business,
   1-11  commerce, and industry are essential to the economic growth of this
   1-12  state and to the full employment, welfare, and prosperity of its
   1-13  citizens;
   1-14              (2)  the number of people seeking jobs in this state
   1-15  exceeds the number of available jobs;
   1-16              (3)  despite the large number of unemployed job
   1-17  seekers, many employers in new and expanding industries are having
   1-18  difficulty finding the skilled workers they need, and a similar
   1-19  problem exists in industries in which overall employment may not be
   1-20  expanding but in which there is an acute need for skilled workers
   1-21  in particular occupations;
   1-22              (4)  studies have shown that the availability of an
   1-23  educated, skilled work force is the single most important factor in
   1-24  an employer's decision to relocate or expand its operations;
    2-1              (5)  the economy of this state is today being
    2-2  challenged by competition from other states and other countries,
    2-3  and our success in meeting that challenge will depend largely on
    2-4  our ability to maintain and improve a skilled and productive work
    2-5  force;
    2-6              (6)  employers, workers, organized labor, and
    2-7  government need to work together to ensure that the labor force of
    2-8  this state is prepared to succeed in the economic environment of
    2-9  the next century;
   2-10              (7)  the emergence of a global economy and the possible
   2-11  creation of the world's largest market through the North American
   2-12  Free Trade Agreement create opportunities for economic growth and
   2-13  social prosperity from which this state only can benefit if its
   2-14  work force is educated, skilled, and prepared to excel; and
   2-15              (8)  structural changes in the Texas economy and
   2-16  decreases in United States military expenditures affecting base
   2-17  closings and defense industries will require new training and
   2-18  retraining initiatives.
   2-19                 ARTICLE II.  SMART JOBS FUND PROGRAM
   2-20        SECTION 2.01.  Chapter 481, Government Code, is amended by
   2-21  adding Subchapter J to read as follows:
   2-22                SUBCHAPTER J.  SMART JOBS FUND PROGRAM
   2-23        Sec. 481.151.  DEFINITIONS.  In this subchapter:
   2-24              (1)  "Business development" includes relocation,
   2-25  expansion, turnover, diversification, or technological change.
   2-26              (2)  "Demand occupation" means an occupation in which,
   2-27  as a result of business development, there are or will be positive
    3-1  growth-to-replacement ratios within the next 12 to 24 months,
    3-2  according to the best available sources of state and local labor
    3-3  market information.
    3-4              (3)  "Employee" means an individual who performs
    3-5  services for another under a contract of hire, whether express or
    3-6  implied, or oral or written.
    3-7              (4)  "Employer" means a person that employs one or more
    3-8  employees.
    3-9              (5)  "Executive director" means the executive director
   3-10  of the department.
   3-11              (6)  "Existing employer" means an employer that:
   3-12                    (A)  has been liable to pay contributions under
   3-13  the Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
   3-14  Vernon's Texas Civil Statutes) for more than one year;
   3-15                    (B)  has employees; and
   3-16                    (C)  is in compliance with the reporting and
   3-17  payment requirements of that Act, as determined by the Texas
   3-18  Employment Commission.
   3-19              (7)  "Family wage job" means a job that offers:
   3-20                    (A)  wages equal to or greater than the state
   3-21  average weekly wage;
   3-22                    (B)  benefits, such as vacation leave, sick
   3-23  leave, and insurance coverage;
   3-24                    (C)  reasonable opportunities for continued skill
   3-25  development and career path advancement; and
   3-26                    (D)  a substantial likelihood of long-term job
   3-27  security.
    4-1              (8)  "In-kind contribution" means a noncash
    4-2  contribution of goods and services provided by an employer as all
    4-3  or part of the employer's matching share of a grant or project.
    4-4              (9)  "Job" means employment on a basis customarily
    4-5  considered full-time for the applicable occupation and industry.
    4-6              (10)  "Minority employer" means a business entity at
    4-7  least 51 percent of which is owned by minority group members or, in
    4-8  the case of a corporation, at least 51 percent of the shares of
    4-9  which are owned by minority group members and that:
   4-10                    (A)  is managed and, in daily operations, is
   4-11  controlled by minority group members; and
   4-12                    (B)  is a domestic business entity with a home or
   4-13  branch office located in this state and is not a branch or
   4-14  subsidiary of a foreign corporation or other foreign business
   4-15  entity.
   4-16              (11)  "Minority group members" include:
   4-17                    (A)  African-Americans;
   4-18                    (B)  American Indians;
   4-19                    (C)  Asian-Americans; and
   4-20                    (D)  Mexican-Americans and other Americans of
   4-21  Hispanic origin.
   4-22              (12)  "Program" means the smart jobs fund program
   4-23  created under this subchapter.
   4-24              (13)  "Project" means a specific employment training
   4-25  project developed and implemented under this subchapter.
   4-26              (14)  "Provider" means a person that provides
   4-27  employment-related training.  The term includes employers, employer
    5-1  associations, labor organizations, community-based organizations,
    5-2  training consultants, public and private schools, technical
    5-3  institutes, junior or community colleges, senior colleges,
    5-4  universities, and proprietary schools, as defined by Section 32.11,
    5-5  Education Code.
    5-6              (15)  "State average weekly wage" means the annual
    5-7  average of the average weekly wage of manufacturing production
    5-8  workers in this state as of September 1 of each year, as determined
    5-9  by the Texas Employment Commission under Section 3(b), Texas
   5-10  Unemployment Compensation Act (Article 5221b-1, Vernon's Texas
   5-11  Civil Statutes), adjusted for regional variances.
   5-12              (16)  "Targeted industry" means an industry that
   5-13  promotes high-skill, high-wage jobs using Texas-available material
   5-14  and human resources, as determined by the department.
   5-15              (17)  "Trainee" means a participant in a project funded
   5-16  under this subchapter.
   5-17              (18)  "Wages" means all forms of compensation or
   5-18  remuneration, excluding benefits, payable for a specific period to
   5-19  an employee for personal services rendered by that employee.
   5-20        Sec. 481.152.  SMART JOBS FUND PROGRAM; ADMINISTRATION.  (a)
   5-21  The smart jobs fund program is created in the department as a work
   5-22  force development incentive program to enhance employment
   5-23  opportunities and to meet the needs of existing and new industries
   5-24  in this state.
   5-25        (b)  The program shall give priority to the creation and
   5-26  retention of family wage jobs and focus on employers in industries
   5-27  that promote high-skill, high-wage jobs in high-technology areas
    6-1  and on demand occupations that provide those jobs.  At least 50
    6-2  percent of the money spent under the program shall be used for
    6-3  projects that assist existing employers.
    6-4        (c)  The department shall administer the program.
    6-5        (d)  The executive director may employ personnel as necessary
    6-6  to administer the program.
    6-7        Sec. 481.153.  RULES.  The policy board shall adopt rules as
    6-8  necessary to implement the program.
    6-9        Sec. 481.154.  FUNDING.  (a)  The smart jobs fund is
   6-10  established as a special trust fund in the custody of the state
   6-11  treasurer separate and apart from all public money or funds of this
   6-12  state.  The fund is composed of:
   6-13              (1)  money transferred into the fund under Section 9e,
   6-14  Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
   6-15  Vernon's Texas Civil Statutes);
   6-16              (2)  gifts, grants, and other donations received by the
   6-17  department for the fund; and
   6-18              (3)  any amounts appropriated by the legislature for
   6-19  the program.
   6-20        (b)  The program is funded through the smart jobs fund.
   6-21        (c)  Money in the smart jobs fund may be used for program
   6-22  administration, marketing expenses, and evaluation of the program.
   6-23  These costs in any fiscal year may not exceed five percent of the
   6-24  total funds deposited in the smart jobs fund in that year.
   6-25        (d)  If, during any three consecutive months, the balance in
   6-26  the smart jobs fund exceeds 0.15 percent of the total taxable wages
   6-27  for the four calendar quarters ending the preceding June 30, as
    7-1  computed under Section 7(c)(8), Texas Unemployment Compensation Act
    7-2  (Article 5221b-5, Vernon's Texas Civil Statutes), the executive
    7-3  director shall immediately transfer the excess to the unemployment
    7-4  compensation fund created under Section 9(a), Texas Unemployment
    7-5  Compensation Act (Article 5221b-7, Vernon's Texas Civil Statutes).
    7-6        Sec. 481.155.  GRANTS.  (a)  The executive director may award
    7-7  grants for projects that meet the requirements of this chapter.
    7-8  The executive director shall attempt to ensure that at least 20
    7-9  percent of the total dollar amount of grants awarded under the
   7-10  program are awarded to minority employers.
   7-11        (b)  The program is job-driven.  A grant may not be awarded
   7-12  unless each employer participating in the project certifies that:
   7-13              (1)  a job or job opening exists or will exist at the
   7-14  end of the project for which the grant is sought; and
   7-15              (2)  the job or job opening will be filled by a
   7-16  participant in the project.
   7-17        (c)  A grant may not be awarded for a project under this
   7-18  section unless each employer participating in the project certifies
   7-19  that the starting wage for a new job created through the project
   7-20  will be greater than 66-2/3 percent of the state average weekly
   7-21  wage and that the wage for a job existing on the date that the
   7-22  project is scheduled to begin will be increased to the greater of:
   7-23              (1)  10 percent over the wage in effect on the day
   7-24  before the date on which the project is scheduled to begin for that
   7-25  job; or
   7-26              (2)  75 percent of the state average weekly wage.
   7-27        (d)  An employer may apply for a grant under this chapter if
    8-1  the employer is required to reduce or eliminate the employer's work
    8-2  force because of reductions in overall employment within an
    8-3  industry or a substantial change in the skills required to continue
    8-4  the employer's business because of technological changes or other
    8-5  factors.  In awarding a grant under this subsection, the executive
    8-6  director may modify the requirements of Subsection (c).
    8-7        (e)  A grant may not be awarded for a project if the project
    8-8  will impair existing contracts for services or collective
    8-9  bargaining agreements, except that a project inconsistent with the
   8-10  terms of a collective bargaining agreement may be undertaken with
   8-11  the written concurrence of the collective bargaining unit and the
   8-12  employer or employers who are parties to the agreement.
   8-13        Sec. 481.156.  GRANT APPLICATION.  (a)  The following may
   8-14  apply for a grant under this subchapter:
   8-15              (1)  one or more employers to secure training for
   8-16  demand occupations in a particular industry;
   8-17              (2)  one or more employers acting in partnership with
   8-18  an employer organization, labor organization, or community-based
   8-19  organization to secure training for demand occupations in a
   8-20  particular industry; or
   8-21              (3)  one or more employers acting in partnership with a
   8-22  consortium composed of one or more providers to secure training for
   8-23  demand occupations in a particular industry.
   8-24        (b)  A grant application must be filed with the department in
   8-25  a form approved by the executive director and must include a
   8-26  complete business and training plan, including:
   8-27              (1)  the number and kind of jobs available;
    9-1              (2)  the skills and competencies required for the
    9-2  identified jobs;
    9-3              (3)  the wages to be paid to trainees on successful
    9-4  completion of the project;
    9-5              (4)  the goals, objectives, and outcome measures for
    9-6  the project;
    9-7              (5)  the proposed curriculum for the project; and
    9-8              (6)  the projected cost per person enrolled, trained,
    9-9  hired, and retained in employment.
   9-10        (c)  The department may provide assistance to applicants in
   9-11  formulating the business and training plan required under
   9-12  Subsection (b).
   9-13        (d)  The department shall minimize the length of the
   9-14  application form.
   9-15        (e)  The executive director shall act on a completed
   9-16  application not later than the 30th day after the date on which the
   9-17  application is filed with the department.
   9-18        Sec. 481.157.  MATCHING REQUIREMENTS; EXEMPTIONS.  (a)  Money
   9-19  provided under a grant for a project must be matched by private
   9-20  funds provided by the employer benefiting from the project in an
   9-21  amount at least equal to the amount provided by the grant.
   9-22        (b)  The policy board may adopt rules modifying the
   9-23  requirements of Subsection (a) for employers with fewer than 50
   9-24  employees and may also adopt rules modifying the requirements of
   9-25  Subsection (a) for projects that provide significant economic
   9-26  benefits to an entire region of the state.
   9-27        (c)  Employer matches may include documented in-kind
   10-1  contributions as well as wages paid to trainees during the training
   10-2  period.
   10-3        Sec. 481.158.  TRAINEES.  The program shall give priority to
   10-4  residents of this state.
   10-5        Sec. 481.159.  CONTRACTS.  (a)  The executive director may
   10-6  approve any project that meets the requirements of this subchapter.
   10-7  If the executive director approves a project and funds are
   10-8  available, the department shall enter into a contract with the
   10-9  grant applicant and with each employer participating in the
  10-10  project.  The contract must specify those skills and competencies
  10-11  to be gained as a result of the project.
  10-12        (b)  Reimbursable costs in the contract may include only
  10-13  those expenses related to direct training in job-related basic
  10-14  skills, including literacy skills, job-related vocational skills,
  10-15  and administrative costs.  Total administrative costs for any
  10-16  particular project may not exceed 10 percent of the project's
  10-17  expenditures.
  10-18        (c)  Each contract must provide a schedule for payment of
  10-19  smart jobs fund money.  Twenty-five percent of the grant award
  10-20  shall be withheld by the department for 90 days after the date of
  10-21  completion of the project.  If all of the trainees in the project
  10-22  have been retained in employment for that 90-day period, the amount
  10-23  of the grant award withheld shall be remitted to the employer.  For
  10-24  each trainee who is not retained in employment for that 90-day
  10-25  period, the amount withheld shall be reduced by the amount of the
  10-26  training costs for that trainee that is derived from grant money,
  10-27  and any balance shall be remitted to the employer.  If there is a
   11-1  negative balance, the employer is liable for the amount of the
   11-2  negative balance and shall remit that amount to the department not
   11-3  later than the 30th day after the date on which the employer is
   11-4  notified of the negative balance by the department.
   11-5        Sec. 481.160.  ANNUAL REPORT.  (a)  The executive director
   11-6  shall report to the governor and the legislature at the end of each
   11-7  fiscal year on the status of the program.
   11-8        (b)  The annual report must include for that fiscal year:
   11-9              (1)  the number of employers receiving grants under the
  11-10  program;
  11-11              (2)  the total amount of grants awarded;
  11-12              (3)  the value, expressed in dollars and as a
  11-13  percentage of total training expenditures, of matching
  11-14  contributions made by employers;
  11-15              (4)  the number of small businesses, as defined by
  11-16  Section 481.101(3), that receive grants under the program and the
  11-17  total amount of the grants awarded to those businesses;
  11-18              (5)  the number of businesses located in enterprise
  11-19  zones, as that term is defined by the Texas Enterprise Zone Act
  11-20  (Article 5190.7, Vernon's Texas Civil Statutes), that receive
  11-21  grants under the program and the total amount of the grants awarded
  11-22  to those businesses;
  11-23              (6)  the geographical distribution of employers
  11-24  receiving grants under the program;
  11-25              (7)  the total number of jobs created, enhanced, or
  11-26  retained under the program, reported by region of the state and by
  11-27  occupation;
   12-1              (8)  the wage levels of trainees entering or returning
   12-2  to the work force, broken down by current employees undergoing
   12-3  retraining and new hires, at three months, one year, and three
   12-4  years after the conclusion of their training;
   12-5              (9)  the number and percentage of participating
   12-6  employers that provide workers' compensation insurance coverage and
   12-7  the number and percentage of employees covered;
   12-8              (10)  the number and percentage of participating
   12-9  employers that offer health care insurance coverage and the number
  12-10  and percentage of employees covered;
  12-11              (11)  the number and percentage of women employers and
  12-12  minority employers receiving grants under the program and the total
  12-13  amount of the grants awarded;
  12-14              (12)  the number and percentage of women, minority
  12-15  group members, and disabled individuals participating as trainees
  12-16  in training projects; and
  12-17              (13)  the number and percentage of women private
  12-18  providers and  private providers who are minority group members
  12-19  utilized by employers in training projects.
  12-20        Sec. 481.161.  EXPIRATION.  This subchapter expires December
  12-21  31, 1999.
  12-22       ARTICLE III.  EMPLOYMENT TRAINING INVESTMENT ASSESSMENT;
  12-23                            PROGRAM FUNDING
  12-24        SECTION 3.01.  Section 7(b), Texas Unemployment Compensation
  12-25  Act (Article 5221b-5, Vernon's Texas Civil Statutes), is amended to
  12-26  read as follows:
  12-27        (b)  Rate of contributions:  Except as provided by subsection
   13-1  (e) of this Section, each <Each> employer shall pay contributions
   13-2  equal to two and seven-tenths percentum (2 7/10%) of wages paid by
   13-3  him with respect to employment, except as provided in subsection
   13-4  (c) of this Section.
   13-5        SECTION 3.02.  Section 7(c)(1), Texas Unemployment
   13-6  Compensation Act (Article 5221b-5, Vernon's Texas Civil Statutes),
   13-7  is amended to read as follows:
   13-8              (1)  Except as provided by Subsection (f) of this
   13-9  section, as <As> of October 1 of each year, the Commission shall
  13-10  establish by industry an average contribution rate for the
  13-11  immediately succeeding calendar year for each Major Group listed in
  13-12  the Standard Industrial Classification Manual published by the
  13-13  United States Office of Management and Budget.  The Commission
  13-14  shall establish the annual contribution rate for a particular
  13-15  industry by averaging the contribution rates paid by employers in
  13-16  that industry over the preceding year ending September 30, based on
  13-17  the employment records maintained by the Commission.  The
  13-18  Commission shall assign each employer to a Major Group in
  13-19  accordance with the definitions contained in the manual.  An
  13-20  employer shall pay contributions for the calendar year in which the
  13-21  person becomes an employer at the rate established for that year
  13-22  for the Major Group to which the employer is assigned, or at two
  13-23  and seven-tenths percent (2.7%) of the taxable wages paid by that
  13-24  employer, whichever rate is greater, until his account has been
  13-25  chargeable with benefits throughout each calendar month of the four
  13-26  (4) consecutive calendar quarters immediately preceding the date as
  13-27  of which such employer's rate is determined.  The contribution rate
   14-1  of each employer who has had at least four (4) such calendar
   14-2  quarters of compensation experience shall be determined as provided
   14-3  below; except that the contribution rate of any employing unit
   14-4  which becomes an employer for the first time during the calendar
   14-5  year 1972, other than one which first becomes an employer because
   14-6  of the provisions of subsection 19(f)(2) of this Act, shall be one
   14-7  percent (1%) rather than two and seven-tenths percent (2.7%) until
   14-8  such time as his account has been chargeable with benefits for four
   14-9  (4) consecutive calendar quarters and an experience rate is
  14-10  computed for him in accordance with this Act.
  14-11        SECTION 3.03.  Section 7(c)(8), Texas Unemployment
  14-12  Compensation Act (Article 5221b-5, Vernon's Texas Civil Statutes),
  14-13  is amended to read as follows:
  14-14              (8)  Except as provided by Subsection (g) of this
  14-15  section, in <In> addition to the general rate provided by
  14-16  Subdivision (6) of this subsection, each employer entitled to an
  14-17  experience rate shall pay a replenishment tax at a rate equal to a
  14-18  percentage, stated to the nearest hundredth, derived from the
  14-19  following numerator and denominator.  The numerator is an amount
  14-20  equal to one-half of the amount of benefits paid during the twelve
  14-21  (12) months ending the preceding September 30 that are not charged
  14-22  to an employer's account, that are charged to employers' accounts
  14-23  after the employers have reached maximum liability because of the
  14-24  maximum tax rate, or that are charged but considered not
  14-25  collectible.  The denominator is the total taxable wages for the
  14-26  four quarters ending the preceding June 30.
  14-27        SECTION 3.04.  Section 7, Texas Unemployment Compensation Act
   15-1  (Article 5221b-5, Vernon's Texas Civil Statutes), is amended by
   15-2  adding Subsections (e), (f), and (g) to read as follows:
   15-3        (e)  Rate of contributions:  Notwithstanding Subsection (b)
   15-4  of this section, on and after January 1, 1994, each employer shall
   15-5  pay contributions equal to two and six-tenths percent (2-6/10%) of
   15-6  wages paid by him with respect to employment, except as provided in
   15-7  Subsection (c) of this section.  This subsection expires December
   15-8  31, 1999.
   15-9        (f)  Notwithstanding Subsection (c)(1) of this section, on
  15-10  and after January 1, 1994, each employer's contribution rate shall
  15-11  be two and six-tenths percent (2-6/10%) until his account has been
  15-12  chargeable with benefits throughout each calendar month of the four
  15-13  (4) consecutive calendar quarters immediately preceding the date as
  15-14  of which such employer's rate is determined.  The contribution rate
  15-15  of each employer who has had at least four (4) such calendar
  15-16  quarters of compensation experience shall be determined as provided
  15-17  by Subsection (c)(4) of this section.  This subsection expires
  15-18  December 31, 1999.
  15-19        (g)  Notwithstanding Subsection (c)(8) of this section, on
  15-20  and after January 1, 1994, in addition to the general rate provided
  15-21  by Subsection (c)(6) of this section, each employer entitled to an
  15-22  experience rate shall pay a replenishment tax at a rate equal to a
  15-23  percentage, stated to the nearest hundredth, computed by dividing
  15-24  the amount equal to one-half of the amount of benefits paid during
  15-25  the twelve (12) months ending the preceding September 30 that are
  15-26  not charged to an employer's account, that are charged to
  15-27  employers' accounts after the employers have reached maximum
   16-1  liability because of the maximum tax rate, or that are charged but
   16-2  considered not collectible by an amount equal to the total taxable
   16-3  wages for the four quarters ending the preceding June 30, and
   16-4  subtracting 0.1 from the quotient.  This subsection expires
   16-5  December 31, 1999.
   16-6        SECTION 3.05.  The Texas Unemployment Compensation Act
   16-7  (Article 5221b-1 et seq., Vernon's Texas Civil Statutes) is amended
   16-8  by adding Section 9e to read as follows:
   16-9        Sec. 9e.  EMPLOYMENT TRAINING INVESTMENT ASSESSMENT; HOLDING
  16-10  FUND; SMART JOBS FUND.  (a)  In addition to any taxes imposed by
  16-11  this Act, there is hereby levied on each employer paying
  16-12  contributions under this Act a separate and additional assessment
  16-13  of 0.1 percent of wages paid by the employer.  This assessment
  16-14  shall be known as the employment training investment assessment and
  16-15  shall be deposited by the commission into the holding fund created
  16-16  under Subsection (b) of this section.  The assessment shall be due
  16-17  at the same time, collected in the same manner, and subject to the
  16-18  same penalties and interest as a contribution assessed under
  16-19  Section 7 of this Act (Article 5221b-5, Vernon's Texas Civil
  16-20  Statutes).
  16-21        (b)  The holding fund is established as a special trust fund
  16-22  in the custody of the state treasurer separate and apart from all
  16-23  public money or funds of this state.  The state treasurer shall
  16-24  administer the fund in accordance with the directions of the
  16-25  commission.  Interest accruing on amounts in the holding fund shall
  16-26  be deposited on a quarterly basis into the unemployment
  16-27  compensation fund.
   17-1        (c)  If, on September 1 of any calendar year, the commission
   17-2  determines that the amount in the unemployment compensation fund
   17-3  will exceed 100 percent of its floor as computed under Section
   17-4  7(c)(6)(B) of this Act (Article 5221b-5, Vernon's Texas Civil
   17-5  Statutes) on the next October 1 computation date, the commission
   17-6  shall transfer the amount in the holding fund to the smart jobs
   17-7  fund created under Section 481.154, Government Code.
   17-8        (d)  If, on September 1 of any calendar year, the commission
   17-9  determines that the amount in the unemployment compensation fund
  17-10  will be at or below 100 percent of its floor as computed under
  17-11  Section 7(c)(6)(B) of this Act (Article 5221b-5, Vernon's Texas
  17-12  Civil Statutes) on the next October 1 computation date, the
  17-13  commission shall transfer to the unemployment compensation fund as
  17-14  much of the amount in the holding fund as is necessary to raise the
  17-15  amount in the unemployment compensation fund to 100 percent of its
  17-16  floor, up to and including the entire amount in the holding fund.
  17-17  The commission shall transfer any  balance remaining in the holding
  17-18  fund to the smart jobs fund created under Section 481.154,
  17-19  Government Code.
  17-20        (e)  This section expires December 31, 1999.
  17-21                         ARTICLE IV.  REPEALER
  17-22        SECTION 4.01.  Section 481.076, Government Code, is repealed.
  17-23      ARTICLE V.  TRANSITION;  EFFECTIVE DATES; EMERGENCY CLAUSE
  17-24        SECTION 5.01.  (a)  Except as provided by Subsections (b) and
  17-25  (c) of this section, this Act takes effect September 1, 1993.
  17-26        (b)  Except as provided by Subsection (c) of this section,
  17-27  the assessment imposed under Section 9e, Texas Unemployment
   18-1  Compensation Act (Article 5221b-1 et seq., Vernon's Texas Civil
   18-2  Statutes), as added by Article III of this Act, applies only to
   18-3  wages paid on or after January 1, 1994.
   18-4        (c)  If, on October 1, 1993, the amount in the unemployment
   18-5  compensation fund is less than the floor of that fund, as computed
   18-6  under Section 7(c)(6)(B), Texas Unemployment Compensation Act
   18-7  (Article 5221b-5, Vernon's Texas Civil Statutes), Article III of
   18-8  this Act takes effect January 1, 1995.
   18-9        SECTION 5.02.  If, as of June 1, 1994, the Texas Employment
  18-10  Commission determines that the amount in the unemployment
  18-11  compensation fund will exceed 100 percent of the floor of that
  18-12  fund, as computed under Section 7(c)(6)(B), Texas Unemployment
  18-13  Compensation Act (Article 5221b-5, Vernon's Texas Civil Statutes),
  18-14  on the next October 1 computation date, the commission shall
  18-15  immediately transfer from the holding fund established under
  18-16  Section 9e(b), Texas Unemployment Compensation Act (Article 5221b-1
  18-17  et seq., Vernon's Texas Civil Statutes), as added by this Act, into
  18-18  the smart jobs fund established under Section 481.154, Government
  18-19  Code, as added by this Act, an amount equal to 25 percent of the
  18-20  anticipated balance in the holding fund as of September 1, 1994.
  18-21        SECTION 5.03.  If the work force development functions and
  18-22  job training functions performed by the Texas Employment
  18-23  Commission, Texas Department of Commerce, and other state agencies
  18-24  are consolidated for performance by one state agency by the 73rd
  18-25  Legislature, it is the intent of the legislature that the
  18-26  administration of the smart jobs fund program created under this
  18-27  Act be transferred to that agency, along with any records or
   19-1  property relating to the operation of the smart jobs fund program.
   19-2        SECTION 5.04.  The importance of this legislation and the
   19-3  crowded condition of the calendars in both houses create an
   19-4  emergency and an imperative public necessity that the
   19-5  constitutional rule requiring bills to be read on three several
   19-6  days in each house be suspended, and this rule is hereby suspended.