By: Smith, Ashley H.B. No. 1610 73R6196 E A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the consolidation of economic development, technical 1-3 education, job training, employment, and unemployment insurance 1-4 programs and the development of an integrated state-local delivery 1-5 system serving all Texans. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 ARTICLE 1. LEGISLATIVE FINDINGS 1-8 SECTION 1.01. LEGISLATIVE FINDINGS. The legislature finds 1-9 that: 1-10 (1) the economic future of Texas and the prosperity of 1-11 its citizens depends on the ability of Texas businesses to compete 1-12 effectively in the world economy; 1-13 (2) a well-educated and highly trained workforce 1-14 provides Texas businesses with the competitive edge critical for 1-15 their success; 1-16 (3) the state's current workforce development effort 1-17 is a fragmented array of more than 21 separately funded and 1-18 administered education, job training, and employment programs 1-19 operated by seven separate state agencies; 1-20 (4) this fragmented approach results in the lack of 1-21 clear accountability for results, duplication of services, 1-22 inappropriate training, and wasted resources; 1-23 (5) consolidating these various federal and state 1-24 programs in a single state-local delivery system will improve the 2-1 quality and effectiveness of services and provide Texas businesses 2-2 with an element critical to their success--a high quality 2-3 workforce; and 2-4 (6) empowering local business, labor, and community 2-5 leaders to take a more active role in their communities' economic 2-6 and workforce development will enhance the quality, efficiency, and 2-7 responsiveness of these programs. 2-8 SECTION 1.02. SHORT TITLE. Articles 2 through 7 of this Act 2-9 may be cited as the Texas Economic and Workforce Development Act. 2-10 SECTION 1.03. APPLICATION OF SUNSET ACT. The Texas 2-11 Department on Labor and Commerce is subject to Chapter 325, 2-12 Government Code (Texas Sunset Act). Unless continued in existence 2-13 as provided by that chapter, the department is abolished September 2-14 1, 2001. 2-15 SECTION 1.04. DEFINITIONS. In this Act: 2-16 (1) "Board" means the Texas Board on Labor and 2-17 Commerce. 2-18 (2) "Department" means the Texas Department on Labor 2-19 and Commerce. 2-20 (3) "Program year" means July 1 to June 30. 2-21 ARTICLE 2. TEXAS DEPARTMENT ON LABOR AND COMMERCE 2-22 SECTION 2.01. CREATION OF DEPARTMENT. The Texas Department 2-23 on Labor and Commerce is created. 2-24 SECTION 2.02. PURPOSE OF DEPARTMENT. The department is 2-25 created for the purpose of consolidating the administration and 2-26 delivery of federal and state programs for economic and workforce 2-27 development. The department is responsible for: 3-1 (1) meeting the needs of Texas business for business 3-2 development assistance, marketing Texas products, and promoting 3-3 Texas as a place to do business; 3-4 (2) meeting the needs of Texas business for a highly 3-5 skilled and productive workforce; and 3-6 (3) meeting the needs of Texas workers for education, 3-7 skills training, and labor market information to enhance their 3-8 employability and standard of living. 3-9 SECTION 2.03. JURISDICTION OF DEPARTMENT. (a) The 3-10 department administers the following programs in this state: 3-11 (1) economic development programs, including promotion 3-12 and marketing, domestic business development, international 3-13 business development, and tourism programs under Section 481.006, 3-14 Government Code, and all other programs currently administered and 3-15 all current functions and responsibilities of the Texas Department 3-16 of Commerce and its advisory boards; 3-17 (2) the Texas Job-Training Partnership Act (Article 3-18 4413(52), Vernon's Texas Civil Statutes); 3-19 (3) postsecondary vocational and technical education 3-20 programs under Chapters 31 and 130, Education Code; 3-21 (4) adult education programs under Section 11.18, 3-22 Education Code; 3-23 (5) apprenticeship programs under Chapter 33, 3-24 Education Code; 3-25 (6) the trade adjustment assistance program under Part 3-26 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et 3-27 seq.); 4-1 (7) the Senior Texans Employment program under Chapter 4-2 101, Human Resources Code; 4-3 (8) the Smart Jobs Fund Program under Subchapter J, 4-4 Chapter 481, Government Code; 4-5 (9) the Texas Unemployment Compensation Act (Article 4-6 5221b-1 et seq., Vernon's Texas Civil Statutes); 4-7 (10) the Texas child labor law (Article 5181.1, 4-8 Vernon's Texas Civil Statutes); 4-9 (11) the Texas payday law (Article 5155, Revised 4-10 Statutes); 4-11 (12) the public information program of the Texas 4-12 Minimum Wage Act of 1970 (Article 5159d, Vernon's Texas Civil 4-13 Statutes); 4-14 (13) literacy funds available to the state under the 4-15 National Literacy Act; and 4-16 (14) the National and Community Service Act of 1990 4-17 (42 U.S.C. Section 12501 et seq.). 4-18 (b) To the fullest extent allowable under federal law the 4-19 department shall also administer: 4-20 (1) the Job Opportunities and Basic Skills program 4-21 under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section 4-22 682); and 4-23 (2) the food stamp employment and training program 4-24 authorized under 7 U.S.C. Section 2015(d). 4-25 SECTION 2.04. MEMBERSHIP REQUIREMENTS. (a) The board is 4-26 composed of six members: 4-27 (1) two of whom shall be representatives of labor; 5-1 (2) two of whom shall be representatives of employers; 5-2 and 5-3 (3) two of whom shall be impartial and shall represent 5-4 the public, one of whom shall represent education interests. 5-5 (b) The board shall also have the following ex officio 5-6 nonvoting members: 5-7 (1) the chair of the Economic Development Committee of 5-8 the Texas House of Representatives; and 5-9 (2) the chair of the Economic Development Committee of 5-10 the Texas Senate. 5-11 (c) The governor shall appoint the members and make the 5-12 appointments without regard to the race, creed, sex, disability, 5-13 religion, or national origin of the appointees. 5-14 SECTION 2.05. MEMBER RESTRICTIONS. (a) A member of the 5-15 board may not engage in any other business, vocation, or employment 5-16 during the member's term on the board. 5-17 (b) A public member of the board may not be an officer, 5-18 employee, or paid consultant of a labor-oriented or 5-19 employer-oriented trade association while the member serves on the 5-20 board. 5-21 SECTION 2.06. EFFECT OF LOBBYING ACTIVITY. A person who is 5-22 required to register as a lobbyist under Chapter 305, Government 5-23 Code, may not serve as a member of the board while registered. If 5-24 the person ceases to engage in lobbying activity and files a notice 5-25 of termination as prescribed by Section 305.008, Government Code, 5-26 the person may serve as a member of the board or act as the general 5-27 counsel to the department. 6-1 SECTION 2.07. TERMS; VACANCY. (a) Members of the board are 6-2 appointed for fixed and staggered six-year terms, with one member's 6-3 term expiring on February 1 of each odd-numbered year. 6-4 (b) A member appointed to fill a vacancy shall hold office 6-5 for the remainder of that term. 6-6 SECTION 2.08. CHAIR. One of the members representing the 6-7 public is the chair of the board. 6-8 SECTION 2.09. REMOVAL OF BOARD MEMBERS. (a) It is a ground 6-9 for removal from the board by impeachment that a member: 6-10 (1) during any 60-day period, is absent from each 6-11 board meeting for which the member received at least 48 hours' 6-12 notice; 6-13 (2) is unable to discharge the member's duties for the 6-14 remainder of the term for which the member was appointed because of 6-15 illness or other disability; 6-16 (3) is absent: 6-17 (A) from more than half of the regularly 6-18 scheduled meetings of the board that the member is eligible to 6-19 attend during each calendar year; or 6-20 (B) from more than half of the regularly 6-21 scheduled meetings of the Council for Labor Workforce Development 6-22 and Education Competitiveness or the Texas Partnership for Economic 6-23 Development that the member is eligible to attend during each 6-24 calendar year; 6-25 (4) violates a prohibition established by Section 2.05 6-26 or 2.06; or 6-27 (5) fails to perform any of the duties as established 7-1 by Section 2.12. 7-2 (b) The validity of an action of the board is not affected 7-3 by the fact that it was taken when a ground for the removal of a 7-4 member of the board existed. 7-5 SECTION 2.10. GENERAL POWERS AND DUTIES. (a) The 7-6 department shall: 7-7 (1) administer all programs and corresponding federal 7-8 and state legislation consolidated under the department's authority 7-9 by this Act; 7-10 (2) determine its own organization and methods of 7-11 procedure in accordance with all applicable state and federal 7-12 legislation; 7-13 (3) promote the adoption of high skill, high 7-14 performance work organizations in Texas; 7-15 (4) promote the development and adoption of a 7-16 business- and industry-driven skill standards and certification 7-17 system that is designed to create and ensure stability but be 7-18 responsive to economic change; 7-19 (5) implement economic development policies and 7-20 programs consistent with recommendations from the Texas Partnership 7-21 for Economic Development; 7-22 (6) implement a statewide system for evaluating the 7-23 effectiveness of all workforce development programs using 7-24 administrative records of the state's unemployment compensation 7-25 program and other such sources as appropriate; 7-26 (7) support research and demonstration projects 7-27 designed to develop new programs and approaches to service 8-1 delivery; 8-2 (8) ensure standardized technical and skill-specific 8-3 curricula for all post-secondary vocational and technical programs 8-4 funded by state and federal funds; 8-5 (9) ensure that the academic curricula of the 8-6 vocational and technical programs are coordinated; 8-7 (10) advocate for the local workforce development 8-8 councils at the state and federal levels; 8-9 (11) provide for a comprehensive labor market 8-10 information system serving employers, students, workers, and state 8-11 and local planning organizations; 8-12 (12) contract with local workforce development boards 8-13 for program planning and service delivery; 8-14 (13) provide training and professional development 8-15 services for commission staff, council members, and local workforce 8-16 development boards and their staff; 8-17 (14) provide technical assistance and support to local 8-18 workforce development boards; 8-19 (15) appoint an executive director; and 8-20 (16) perform such other functions and duties as may be 8-21 required by law or assigned by the governor. 8-22 (b) The board may: 8-23 (1) adopt rules, make expenditures, enter into 8-24 contracts with public, private, and nonprofit organizations, 8-25 require reports, conduct investigations, and take other action it 8-26 considers necessary or suitable to fulfill its administrative 8-27 duties; and 9-1 (2) delegate to the executive director any power or 9-2 duty imposed on the department by law, including the authority to 9-3 make final orders or decisions, except that the board may not 9-4 delegate: 9-5 (A) the power or duty to adopt rules; and 9-6 (B) duties related to the approval and issuance 9-7 of bonds. 9-8 SECTION 2.11. TRAINING FOR LOCAL WORKFORCE DEVELOPMENT BOARD 9-9 MEMBERS. The department shall provide training either directly or 9-10 through a contracted party to all members of local workforce 9-11 development boards. 9-12 SECTION 2.12. EXECUTIVE DIRECTOR. The executive director of 9-13 the department shall: 9-14 (1) perform the duties assigned by the board and state 9-15 law and shall administer the day-to-day operations of the agency; 9-16 (2) appoint and prescribe the powers and duties of all 9-17 officers, accountants, attorneys, experts, and other persons as 9-18 necessary in the performance of the department's duties; 9-19 (3) delegate authority to persons appointed under this 9-20 section, as the executive director considers reasonable and proper, 9-21 for effective administration; 9-22 (4) bond any person that handles money or signs checks 9-23 for the department; 9-24 (5) employ personnel necessary for the administration 9-25 of the department's duties; 9-26 (6) develop an intradepartment career ladder program, 9-27 one part of which shall require the intradepartmental posting of 10-1 all nonentry-level positions concurrently with any public posting; 10-2 (7) develop a system of annual performance evaluations 10-3 based on measurable job tasks on which all merit pay for commission 10-4 employees must be based; 10-5 (8) provide to the department's employees as often as 10-6 is necessary information regarding their qualifications under this 10-7 article and their responsibilities under applicable laws relating 10-8 to standards of conduct for state officers and employees; and 10-9 (9) prepare and maintain a written policy statement 10-10 that ensures implementation of a program of equal employment 10-11 opportunity under which all personnel transactions are made without 10-12 regard to race, color, disability, sex, religion, age, or national 10-13 origin, and that must include: 10-14 (A) personnel policies, including policies 10-15 relating to recruitment, evaluation, selection, appointment, 10-16 training, and promotion of personnel; 10-17 (B) a comprehensive analysis of the department's 10-18 workforce that meets federal and state guidelines; 10-19 (C) procedures by which a determination can be 10-20 made of significant underuse in the department's workforce of all 10-21 persons for whom federal or state guidelines encourage a more 10-22 equitable balance; and 10-23 (D) reasonable methods to appropriately address 10-24 areas of significant underuse in the department's workforce of all 10-25 persons for whom federal and state guidelines encourage a more 10-26 equitable balance. 10-27 ARTICLE 3. STATE POLICY COUNCILS 11-1 PART A. TEXAS PARTNERSHIP FOR ECONOMIC DEVELOPMENT 11-2 SECTION 3.01. CREATION. The Texas Partnership for Economic 11-3 Development is an advisory board to the department. 11-4 SECTION 3.02. MEMBERSHIP. (a) The partnership is governed 11-5 by a board of 15 members composed of: 11-6 (1) seven members appointed by the governor, of which 11-7 three members must represent private industry, which may not be the 11-8 same industry, two members must represent public or higher 11-9 education, and two members must represent the public; 11-10 (2) four members appointed by the speaker of the house 11-11 of representatives, of which three members must represent private 11-12 industry, which may not be the same industry, and one member must 11-13 represent public or higher education; and 11-14 (3) four members appointed by the lieutenant governor, 11-15 of which three members must represent private industry, which may 11-16 not be the same industry, and one member must represent public or 11-17 higher education. 11-18 (b) Members of the partnership serve staggered three-year 11-19 terms, with the terms of eight members expiring February 1 of each 11-20 odd-numbered year and the terms of seven members expiring February 11-21 1 of each even-numbered year. 11-22 (c) The partnership may adopt and enforce rules necessary to 11-23 carry out this article. 11-24 (d) Before the partnership's first meeting after the regular 11-25 appointment of a member, the governor shall select a chair from the 11-26 partnership's private sector members. 11-27 (e) The partnership shall meet not less than quarterly or 12-1 more frequently at the request of the chair. 12-2 SECTION 3.03. COOPERATION. (a) Institutions of higher 12-3 education shall cooperate with the partnership and participate in 12-4 the planning efforts of the partnership. 12-5 (b) The partnership shall coordinate its efforts closely 12-6 with the governor's office and other state agencies with related 12-7 responsibilities. 12-8 SECTION 3.04. ADVISORY COMMITTEES. (a) The partnership may 12-9 appoint advisory committees composed of citizens of the state to 12-10 advise the partnership on strategies and plans addressing specific 12-11 infrastructures or sectors of the economy. In forming such 12-12 committees and task forces, the partnership shall ensure equitable 12-13 representation from both the public and private sectors. A member 12-14 of an advisory committee appointed under this section serves 12-15 without compensation but, if resources are available, may be 12-16 entitled to reimbursement of actual expenses incurred in the 12-17 performance of the member's duties. 12-18 (b) The partnership will appoint a research coordinating 12-19 committee to be composed of educators from four institutions and 12-20 private sector members. This committee role is to recommend the 12-21 plans for the rapid development application of scientific and 12-22 technological research. 12-23 SECTION 3.05. FUNCTIONS OF PARTNERSHIP. (a) The 12-24 partnership shall: 12-25 (1) develop and recommend to the governor, in concert 12-26 with the Council for Labor Workforce Development and Education, a 12-27 short- and long-range strategic plan for the state's economic and 13-1 workforce development effort; 13-2 (2) recommend to the governor the goals, objectives, 13-3 and performance standards to guide and evaluate the economic 13-4 development programs implemented by the department; 13-5 (3) monitor and evaluate the operation and results of 13-6 the state's economic development programs; 13-7 (4) serve as an advocate for the development of 13-8 high-performance work organizations in Texas business and 13-9 government; 13-10 (5) develop short-range, intermediate, and long-range 13-11 policies, programs, and recommendations necessary for the rapid 13-12 development and application of scientific and technological 13-13 research and for the development of an economic infrastructure that 13-14 will actively support the growing industrial, agricultural, and 13-15 service sectors of the state's economy; 13-16 (6) develop policies, programs, and recommendations 13-17 regarding: 13-18 (A) economic development initiatives; 13-19 (B) education and workforce development; 13-20 (C) telecommunications; 13-21 (D) finance and capital formation; 13-22 (E) research and development; 13-23 (F) production; 13-24 (G) distribution; 13-25 (H) transportation; 13-26 (I) natural resources; and 13-27 (J) export trade; 14-1 (7) develop a system to monitor and measure the impact 14-2 of recommendations developed by the partnership and those developed 14-3 by the: 14-4 (A) Texas 2000 Commission; 14-5 (B) Texas Science and Technology Council; 14-6 (C) Speaker's Task Force on Economic 14-7 Development; 14-8 (D) Strategic Economic Planning Commission 14-9 (E) Select Committee on Higher Education; and 14-10 (F) advisory committee to the Senate Committee 14-11 on Business, Technology, and Education; and 14-12 (8) encourage educators to work with business not only 14-13 to identify current needs but to help business identify new 14-14 technology and make long-term projections to ensure that there are 14-15 jobs in the future and qualified workers for those jobs. 14-16 (b) The partnership shall submit to the chair and executive 14-17 director of the department, the governor, the Senate Economic 14-18 Development Committee, the House Economic Development Committee, 14-19 the speaker of the house of representatives, and the lieutenant 14-20 governor, not later than the 180th day after the first meeting of 14-21 the partnership, a plan that includes specific goals and economic 14-22 targets and the method by which the partnership will accomplish 14-23 those goals and targets. 14-24 (c) The partnership may solicit and accept gifts, grants, 14-25 and donations from any source to carry out the duties of the 14-26 partnership. 14-27 (d) The partnership may execute interagency contracts for 15-1 the performance of services. 15-2 SECTION 3.06. PARTNERSHIP STAFFING AND SUPPORT. (a) The 15-3 partnership shall have an executive director who reports directly 15-4 to the chair and the necessary professional, technical, and support 15-5 staff required to effectively carry out its duties and 15-6 responsibilities. This staff shall be independent of the 15-7 department. Partnership staff may be augmented by staff from state 15-8 agencies temporarily assigned to assist with special projects. 15-9 (b) All state agencies shall provide complete and accurate 15-10 information in a timely manner to assist the partnership in 15-11 carrying out its responsibilities. 15-12 (c) Any federal funding for partnership staff and functions 15-13 shall be allocated in accordance with federal requirements. 15-14 (d) Additional financial support for the partnership shall 15-15 be provided by the department. 15-16 SECTION 3.07. MEETINGS. The partnership shall meet not less 15-17 than quarterly. 15-18 PART B. COUNCIL FOR LABOR WORKFORCE DEVELOPMENT AND EDUCATION 15-19 SECTION 3.08. CREATION OF COUNCIL. The Council for Labor 15-20 Workforce Development and Education is created. 15-21 SECTION 3.09. MEMBERSHIP OF COUNCIL. (a) The council shall 15-22 be appointed by the governor, who shall designate one of the 15-23 business representatives to be chair. Members shall serve 15-24 three-year, fixed and staggered terms. The membership shall 15-25 reflect the ethnic and geographic diversity of the state but may 15-26 not exceed 40 members. 15-27 (b) The council shall be composed as follows: 16-1 (1) the head of each state agency responsible for the 16-2 administration of an applicable federal or state human resource 16-3 program; 16-4 (2) one or more representatives from each of the 16-5 following categories, the total of which shall constitute not less 16-6 than 15 percent of the membership of the council: 16-7 (A) local public education; 16-8 (B) a community or technical college; and 16-9 (C) a four-year institution; 16-10 (3) one or more representatives of community-based 16-11 organizations; 16-12 (4) representatives of business and industry, 16-13 including individuals who are representing business and industry on 16-14 local workforce development boards, who shall constitute not less 16-15 than 15 percent of the membership of the council; 16-16 (5) representatives of organized labor selected from 16-17 among individuals nominated by recognized state labor federations, 16-18 who shall constitute not less than 15 percent of the membership of 16-19 the council; 16-20 (6) additional members, who may be selected from: 16-21 (A) representatives from local welfare agencies; 16-22 (B) representatives from public housing 16-23 agencies; 16-24 (C) representatives from units of general local 16-25 government or consortia of such units, appointed from nominations 16-26 made by the chief elected officials of such units or consortia; 16-27 (D) representatives from the state legislature; 17-1 (E) representatives from any state or local 17-2 program that receives funding under an applicable federal human 17-3 resource program that the governor determines to have a direct 17-4 interest in the utilization of human resources within the state; 17-5 and 17-6 (F) individuals who have special knowledge and 17-7 qualifications with respect to special education and career 17-8 development needs of hard-to-serve individuals; and 17-9 (7) members of the board, who shall serve as ex 17-10 officio, nonvoting members of the council. 17-11 (c) None of the following categories of individuals may 17-12 constitute more than 60 percent of the membership of the council: 17-13 (1) individuals selected under Subsection (b)(1) of 17-14 this section; 17-15 (2) individuals appointed under Subsection (b)(2) of 17-16 this section; 17-17 (3) individuals appointed under Subsection (b)(3) of 17-18 this section; 17-19 (4) individuals appointed under Subsection (b)(4) of 17-20 this section; 17-21 (5) individuals appointed under Subsection (b)(5) of 17-22 this section; and 17-23 (6) individuals selected under Subsection (b)(7) of 17-24 this section. 17-25 (d) The council may create committees as needed to carry out 17-26 its duties and responsibilities. The council may create technical 17-27 advisory groups composed of both council and noncouncil members to 18-1 provide assistance as needed. 18-2 SECTION 3.10. RESPONSIBILITIES AND FUNCTIONS OF COUNCIL. 18-3 (a) The council shall assume the state advisory council 18-4 responsibilities authorized under the following federal acts: 18-5 (1) the Job Training Reform Amendments of 1992; 18-6 (2) the National and Community Service Act of 1990 (42 18-7 U.S.C. Section 12501 et seq.); 18-8 (3) the Adult Education Act (20 U.S.C. Section 1201 et 18-9 seq.); 18-10 (4) the Wagner-Peyser Act (29 U.S.C. Section 49 et 18-11 seq.); 18-12 (5) Part F of Subchapter IV of the Social Security Act 18-13 (42 U.S.C. Section 681 et seq.); 18-14 (6) the employment program established under Section 18-15 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. Section 18-16 2015(d)(4)); and 18-17 (7) the National Literacy Act. 18-18 (b) The council shall assume responsibilities for the 18-19 following state advisory councils: 18-20 (1) the Texas Literacy Council; 18-21 (2) the Apprenticeship Advisory Committee; and 18-22 (3) the Technical Advisory Committee to the State 18-23 Occupational Information Coordinating Council. 18-24 (c) The functions of the council include: 18-25 (1) ensuring the development of a well-educated, 18-26 highly skilled workforce in Texas by promoting lifetime education, 18-27 individualized learning, and community learning; 19-1 (2) serving as an advocate for the development of an 19-2 integrated workforce development system to provide quality services 19-3 addressing the needs of Texas business and workers; 19-4 (3) recommending to the governor the designation of 19-5 workforce development regions for the local planning and delivery 19-6 of workforce development programs; 19-7 (4) developing and recommending to the governor, in 19-8 concert with the Texas Partnership for Economic Development, a 19-9 long-term strategic plan for the state's economic and workforce 19-10 development effort; 19-11 (5) designing and implementing a state-local planning 19-12 process for developing goals, objectives, and performance standards 19-13 for the state's workforce development programs; 19-14 (6) recommending to the governor the goals, 19-15 objectives, and performance standards to guide and evaluate the 19-16 workforce development programs implemented by the commission; 19-17 (7) reviewing local workforce development plans and 19-18 making recommendations to the governor for approval; 19-19 (8) recommending to the governor new programs and 19-20 delivery systems to improve the efficiency and effectiveness of the 19-21 state's workforce development initiatives; 19-22 (9) reviewing the state's education, workforce 19-23 development, and human services programs and systems and making 19-24 recommendations to the governor regarding opportunities for 19-25 coordination that would improve the quality of services; 19-26 (10) monitoring and evaluating the operation and 19-27 results of the state's workforce development programs; and 20-1 (11) carrying out the federal and state mandated 20-2 duties and responsibilities for all advisory councils required 20-3 under applicable federal and state workforce development programs 20-4 consolidated under the commission. 20-5 SECTION 3.11. COUNCIL STAFFING AND SUPPORT. (a) The 20-6 council shall have an executive director, who reports directly to 20-7 the chair, and the necessary professional, technical, and support 20-8 staff required to effectively carry out its duties and 20-9 responsibilities. This staff shall be independent of the 20-10 commission. Council staff may be augmented by staff from state 20-11 agencies temporarily assigned to assist with special projects. 20-12 (b) All state agencies shall provide complete and accurate 20-13 information in a timely manner to assist the council in carrying 20-14 out its responsibilities. 20-15 (c) Any federal funding for council staff and functions 20-16 shall be allocated in accordance with federal requirements. All 20-17 expenditures shall reflect priority for the designated 20-18 responsibilities of that funding source. 20-19 (d) Each state agency represented on the council shall 20-20 provide funds for the financial support of the council's operations 20-21 at least proportional to their financial participation in the 20-22 workforce development system. 20-23 SECTION 3.12. MEETINGS. The council shall meet not less 20-24 than quarterly or more frequently at the request of the chair. 20-25 ARTICLE 4. ADVISORY COMMITTEE ON 20-26 VOCATIONAL-TECHNICAL EDUCATION 20-27 SECTION 4.01. ADVISORY COMMITTEE ON VOCATIONAL-TECHNICAL 21-1 EDUCATION. (a) The advisory committee on vocational-technical 21-2 education is created to advise the Texas Higher Education 21-3 Coordinating Board, the State Board of Education, and the 21-4 department in coordinating secondary and postsecondary 21-5 vocational-technical activities and vocational-technical teacher 21-6 education programs offered or proposed to be offered in the local 21-7 education agencies' colleges and universities of this state. The 21-8 committee shall be composed of the three members of the board, 21-9 three members from the Texas Higher Education Coordinating Board 21-10 appointed by the chair of the coordinating board, and three members 21-11 of the State Board of Education appointed by the chair of that 21-12 board. A member of the coordinating board shall be designated as 21-13 chair of the advisory committee by the chair of the coordinating 21-14 board. The committee shall hold regular annual meetings as called 21-15 by the chair. 21-16 (b) The committee shall: 21-17 (1) advise the agencies on the coordination of 21-18 secondary and postsecondary vocational-technical education and the 21-19 articulation between postsecondary vocational-technical education 21-20 and secondary vocational-technical education; 21-21 (2) facilitate the transfer of responsibilities for 21-22 the administration of postsecondary vocational-technical education 21-23 from the Texas Higher Education Coordinating Board to the 21-24 department; and 21-25 (3) advise the State Board of Vocational Education on: 21-26 (A) the allocation between secondary and 21-27 postsecondary education of funds received by the state from the 22-1 federal government under the Carl D. Perkins Vocational and 22-2 Applied Technology Education Act and other federal statutes 22-3 relating to postsecondary vocational-technical education; 22-4 (B) the transfer of federal funds to the 22-5 department for allotment to eligible public postsecondary 22-6 institutions of higher education; 22-7 (C) the vocational-technical education funding 22-8 for projects and institutions; 22-9 (D) the development and updating of the state 22-10 plan for vocational-technical education and the evaluation of 22-11 programs, services, and activities of vocational-technical 22-12 education and such amendments to the state plan for 22-13 vocational-technical education as may relate to postsecondary 22-14 education; and 22-15 (E) other matters related to postsecondary 22-16 vocational-technical education. 22-17 ARTICLE 5. DESIGNATING WORKFORCE DEVELOPMENT REGIONS 22-18 SECTION 5.01. DESIGNATING WORKFORCE DEVELOPMENT REGIONS. 22-19 (a) The governor shall, after receiving the recommendations of the 22-20 Council for Labor Workforce Development and Education, publish a 22-21 proposed designation of local workforce development regions for the 22-22 planning and delivery of workforce development services, each of 22-23 which: 22-24 (1) is composed of more than one contiguous unit of 22-25 general local government, which shall include at least one county; 22-26 (2) is consistent with either a local labor market 22-27 area, a metropolitan statistical area, one of the 24 substate 23-1 planning regions or one of the 10 uniform state service regions; 23-2 and 23-3 (3) is of such size to have the administrative 23-4 resources necessary to provide for the effective planning, 23-5 management, and delivery of workforce development services. 23-6 (b) Units of general local government, business and labor 23-7 organizations, and other affected persons and organizations shall 23-8 be given an opportunity to comment on the proposed designation of 23-9 workforce development regions and to request revisions thereof. 23-10 (c) The governor, after considering all comments and 23-11 requests for changes, shall make the final designation of workforce 23-12 development regions. The governor may redesignate workforce 23-13 development regions not more frequently than every two years. Such 23-14 redesignation shall be made not later than four months before the 23-15 beginning of a program year. 23-16 ARTICLE 6. LOCAL WORKFORCE DEVELOPMENT BOARDS 23-17 SECTION 6.01. CREATION OF LOCAL WORKFORCE DEVELOPMENT 23-18 BOARDS. (a) The chief elected officials in a workforce 23-19 development region designated by the governor under Section 5.01 of 23-20 this Act may form, in accordance with rules established by the 23-21 commission, a local workforce development board to plan, oversee, 23-22 and evaluate the delivery of all workforce development programs in 23-23 that workforce development region. 23-24 (b) Upon reaching an agreement regarding the formation of a 23-25 local workforce development board, the chief elected officials 23-26 shall reduce that agreement to writing. This local government 23-27 agreement shall include: 24-1 (1) the purpose for the agreement; 24-2 (2) the initial size of the local board; 24-3 (3) the number of members to be appointed by each 24-4 member government and their terms of office; and 24-5 (4) the selection process to be followed, which must 24-6 be consistent with applicable federal and state laws. 24-7 (c) The chief elected officials shall consider the views of 24-8 all affected local organizations before making a final decision 24-9 regarding the formation of a local workforce development board, 24-10 including the private industry councils and the quality workforce 24-11 planning committees. 24-12 (d) Until the chief elected officials in a workforce 24-13 development region are able to reach an agreement providing for the 24-14 establishment of a local workforce development board and the local 24-15 board is certified by the governor, none of the powers and duties 24-16 granted a workforce development board under this Act shall be 24-17 exercised in that region. 24-18 SECTION 6.02. MEMBERSHIP OF LOCAL BOARD. (a) A local board 24-19 shall be appointed by the chief elected officials consistent with 24-20 the local government agreement and applicable federal and state 24-21 laws. Local board members shall serve for fixed and staggered 24-22 terms and shall reflect the ethnic and geographic diversity of the 24-23 workforce development region. A local board shall be composed as 24-24 follows: 24-25 (1) representatives of the private sector, who shall 24-26 constitute a majority of the membership of the local board and who 24-27 shall be owners of business concerns, chief executives or chief 25-1 operating officers of nongovernmental employers, or other private 25-2 sector executives who have substantial management or policy 25-3 responsibilities; 25-4 (2) representatives of organized labor and 25-5 community-based organizations, who shall constitute not less than 25-6 15 percent of the membership of the local board; and 25-7 (3) representatives of each of the following: 25-8 (A) educational agencies, including 25-9 postsecondary practitioners representing vocational education, 25-10 which shall be representative of all educational agencies in the 25-11 service delivery area; 25-12 (B) vocational rehabilitation agencies; 25-13 (C) public assistance agencies; 25-14 (D) economic development agencies; and 25-15 (E) the public employment service. 25-16 (b) The chair of a local board shall be selected from among 25-17 members of the local board who are representatives of the private 25-18 sector. 25-19 (c) Private sector representatives on a local board shall be 25-20 selected from among individuals nominated by general-purpose 25-21 business organizations after consulting with and receiving 25-22 recommendations from other business organizations in the workforce 25-23 development region. The number of such nominations shall be at 25-24 least 150 percent of the number of individuals to be appointed 25-25 under Subsection (a)(1) of this section. Such nominations and the 25-26 individuals selected from such nominations shall reasonably 25-27 represent the industrial and demographic composition of the 26-1 business community. Whenever possible, at least one-half of such 26-2 business and industry representatives shall be representatives of 26-3 small business, including minority business. 26-4 (d) In this section: 26-5 (1) "General-purpose business organizations" means 26-6 organizations that admit to membership any for-profit business 26-7 operating within the workforce development area. 26-8 (2) "Small business" means private for-profit 26-9 enterprises employing 500 or fewer employees. 26-10 (e) The education representatives on a local board shall be 26-11 selected from among individuals nominated by institutions of higher 26-12 education, including entities offering adult education, or general 26-13 organizations of such institutions, within the workforce 26-14 development region. 26-15 (f) The labor representatives on a local board shall be 26-16 selected from individuals recommended by recognized state and local 26-17 labor federations. If the state or local labor federation fails to 26-18 nominate a sufficient number of individuals to meet the labor 26-19 representation requirements of Subsection (a)(2) of this section, 26-20 individual workers may be included on the council to complete the 26-21 labor representation. 26-22 (g) The remaining members of a local board shall be selected 26-23 from individuals recommended by interested organizations. 26-24 (h) A local board may create committees as needed to carry 26-25 out its duties and responsibilities. The local board may create 26-26 technical advisory groups composed of both council and noncouncil 26-27 members to provide assistance as needed. 27-1 (i) Members of a local board shall avoid the appearance of 27-2 conflict of interest by recusing themselves on votes of the local 27-3 board directly affecting the funding of their organization or any 27-4 organization that they represent. 27-5 SECTION 6.03. CERTIFICATION OF LOCAL BOARD. The governor 27-6 shall certify a local workforce development board if the governor 27-7 determines that its composition and appointments are consistent 27-8 with applicable federal and state laws and requirements. Such 27-9 certification shall be made or denied within 30 days after the date 27-10 on which a certification request is submitted to the governor. 27-11 Until certified by the governor, none of the powers and duties 27-12 granted a board under this Act shall be exercised in that workforce 27-13 development region. 27-14 SECTION 6.04. FUNCTIONS OF LOCAL BOARD. A local workforce 27-15 development board shall be directly responsible and accountable to 27-16 the department for the planning and delivery of workforce 27-17 development services in the workforce development region. The 27-18 local board shall: 27-19 (1) serve as a single point of contact for local 27-20 businesses to communicate their skill needs and influence the 27-21 direction of workforce education and training programs in the 27-22 workforce development region; 27-23 (2) develop a local plan for addressing the workforce 27-24 development needs of the workforce development region, which shall: 27-25 (A) be responsive to the goals, objectives, and 27-26 performance standards established by the governor; 27-27 (B) target services to meet local needs, 28-1 including the identification of industries and employers likely to 28-2 employ workers who complete job training programs; and 28-3 (C) ensure that the workforce development 28-4 system, including the educational system, has the flexibility to 28-5 meet the needs of local businesses; 28-6 (3) designate itself or some other entity as its 28-7 fiscal agent to be responsible and accountable for the management 28-8 of all workforce development funds available to the local board; 28-9 (4) create local workforce development centers as 28-10 established in Article 7 of this Act; 28-11 (5) review and approve all vocational and technical 28-12 training programs supported with federal or state funding to ensure 28-13 that postsecondary training provided meets the needs of local 28-14 businesses; 28-15 (6) review and approve plans for postsecondary 28-16 vocational and technical education programs to be provided in the 28-17 workforce development region; 28-18 (7) assume responsibilities of local workforce 28-19 development advisory boards and councils authorized by federal or 28-20 state laws, including but not limited to private industry councils, 28-21 quality workforce planning committees, job service employer 28-22 committees and local vocational program advisory committees, as 28-23 appropriate; 28-24 (8) monitor and evaluate the effectiveness of the 28-25 workforce development centers, other contractors providing 28-26 workforce development services for the local board, and vocational 28-27 and technical education programs operated by institutions of higher 29-1 education; 29-2 (9) have the authority to increase or decrease the 29-3 size of its membership consistent with applicable federal laws; and 29-4 (10) promote the cooperation and coordination among 29-5 public organizations, community organizations, and private business 29-6 providing workforce development services. 29-7 SECTION 6.05. BUDGET AND STAFFING. A local board shall 29-8 establish a budget for itself that must be included in the local 29-9 workforce development plan submitted to the Partnership for 29-10 Economic Development. The local board shall have such 29-11 professional, technical, and support staff as necessary to carry 29-12 out its strategic planning, oversight, and evaluation functions. 29-13 The local board staff shall be separate from and independent of any 29-14 organization providing education or workforce development services 29-15 in the workforce development region. 29-16 SECTION 6.06. APPROVAL OF FISCAL AGENT. The department 29-17 shall approve the fiscal agent selected by the local workforce 29-18 development board before the disbursement of any federal or state 29-19 workforce development funds to the local board. The department's 29-20 approval shall be based on an audit of the financial capability of 29-21 the fiscal agent to ensure the sound and efficient management of 29-22 all federal and state funds resources. 29-23 SECTION 6.07. CONTRACTING FOR SERVICE DELIVERY. A local 29-24 workforce development board may not be a direct provider of client 29-25 services. A local board may request a waiver of this requirement 29-26 from the Council for Labor Workforce Development and Education. 29-27 The request for such a waiver must include a detailed justification 30-1 based on the lack of existing alternatives for delivery of client 30-2 services in the workforce development region. 30-3 SECTION 6.08. INCENTIVES AND WAIVERS. (a) A local 30-4 workforce development board certified by the governor is eligible 30-5 for incentives and program waivers to promote and support 30-6 integrated planning and delivery of workforce development services. 30-7 (b) Incentives, to the extent feasible under existing 30-8 federal and state workforce development laws, shall include but not 30-9 be limited to: 30-10 (1) priority for discretionary funding, including 30-11 financial incentives for the consolidation of service delivery 30-12 areas authorized under the federal Job Training Partnership Act; 30-13 and 30-14 (2) block grants of formula allocated funding. 30-15 (c) The governor, in concert with the local workforce 30-16 development boards, shall identify specific barriers to integrated 30-17 service delivery at the local level, shall request waivers from 30-18 existing federal and state regulations, and shall advocate for 30-19 changes in federal and state laws to promote local service 30-20 integration. 30-21 ARTICLE 7. LOCAL DELIVERY SYSTEM 30-22 SECTION 7.01. WORKFORCE DEVELOPMENT CENTERS. A local 30-23 workforce development board shall establish workforce development 30-24 centers accessible to workers and employers throughout the 30-25 workforce development region. Each center shall provide access to 30-26 the full array of information and services available in the 30-27 workforce development region and shall address the individual needs 31-1 of workers and employers. Services available shall be tailored to 31-2 individual needs and shall include but not be limited to: 31-3 (1) labor market information, including the skills of 31-4 the area workforce, available job openings, and the education, 31-5 training, and employment opportunities in the local region, in the 31-6 state, and as feasible, in the nation; 31-7 (2) common intake and eligibility determination for 31-8 all workforce development programs and services; 31-9 (3) independent assessment of individual needs and the 31-10 development of an individual service strategy; 31-11 (4) centralized and continuous case management and 31-12 counseling; 31-13 (5) individual referral for services such as basic 31-14 education, classroom skills training, on-the-job training, and 31-15 customized training; and 31-16 (6) supportive services, including child care, loans, 31-17 and other forms of financial assistance required to participate in 31-18 and complete training. 31-19 SECTION 7.02. RIGHT TO KNOW. The local workforce 31-20 development center shall provide each individual who participates 31-21 in a vocational or technical training program with a written 31-22 document that informs the person of the likelihood of employment 31-23 and the wage level that the individual may expect on completion of 31-24 the training. 31-25 ARTICLE 8. TRANSITION PROVISIONS 31-26 SECTION 8.01. EFFECTIVE DATE; TRANSITION. (a) This Act 31-27 takes effect June 1, 1993. 32-1 (b) The Texas Department on Labor and Commerce, the Texas 32-2 Partnership for Economic Development, and the Council for Labor 32-3 Workforce Development and Education shall be appointed and 32-4 operational not later than September 1, 1993. 32-5 (c) The Texas Employment Commission is merged into the Texas 32-6 Department on Labor and Commerce on January 1, 1994. Any reference 32-7 in law to the Texas Employment Commission on or after that date 32-8 means the Texas Department on Labor and Commerce. 32-9 (d) The Texas Department of Commerce is merged into the 32-10 Texas Department on Labor and Commerce on January 1, 1994. Any 32-11 reference in law to the Texas Department of Commerce on or after 32-12 that date means the Texas Department on Labor and Commerce. 32-13 SECTION 8.02. TRANSITION OVERSIGHT COMMITTEE. (a) A 32-14 transition oversight committee is created June 1, 1993. The 32-15 committee is composed of the following members: 32-16 (1) the chair of the Texas Employment Commission; 32-17 (2) the chair of the State Job Training Coordinating 32-18 Council; 32-19 (3) the chair of the policy council of the Texas 32-20 Department of Commerce; 32-21 (4) the chair of the Texas Higher Education 32-22 Coordinating Board; 32-23 (5) the chair of the Texas Board of Human Services; 32-24 (6) the chair of the Texas Council on Vocational 32-25 Education; 32-26 (7) the chair of the Texas Board on Aging; 32-27 (8) one member representing the general public to be 33-1 appointed by the governor; 33-2 (9) one member representing the general public to be 33-3 appointed by the lieutenant governor; and 33-4 (10) one member representing the general public to be 33-5 appointed by the speaker of the house of representatives. 33-6 (b) All agencies affected by transfer are hereby directed to 33-7 cooperate with the committee in formulating and implementing a 33-8 transition plan and program. 33-9 (c) The committee shall develop and oversee the 33-10 implementation of a plan that will carry out the full effect of 33-11 this Act in an orderly fashion. The committee shall prepare a 33-12 written report relating to the transfer of workforce development 33-13 programs to the Texas Department on Labor and Commerce to be filed 33-14 with the governor, the lieutenant governor, and the speaker of the 33-15 house of representatives not later than September 1, 1993. 33-16 (d) The committee shall have the following duties and 33-17 authority: 33-18 (1) power to appoint a full-time staff person with 33-19 clerical support to assist in all duties and responsibilities of 33-20 the commission; 33-21 (2) power to have staff transferred from state 33-22 agencies to assist the committee in the implementation of its 33-23 duties and responsibilities; 33-24 (3) power to require departments to develop transition 33-25 programs and interim operating budgets as necessary for assuring 33-26 orderly transition; and 33-27 (4) power to adopt interim rules, regulations, and 34-1 procedures consistent with the intent of this Act and the laws of 34-2 the state. 34-3 (e) This section expires and the committee is abolished 34-4 September 1, 1993. 34-5 SECTION 8.03. MISCELLANEOUS TRANSITION PROVISIONS. (a) The 34-6 chief elected officials of a workforce development region may apply 34-7 for certification of a local workforce development board on or 34-8 after January 1, 1995. Chief elected officials may request a 34-9 waiver to allow them to establish a local workforce development 34-10 board before that date from the Council for Labor Workforce 34-11 Development and Education. 34-12 (b) A local workforce development board established under 34-13 this Act and certified by the governor shall establish local 34-14 workforce development centers not later than the 270th day after 34-15 the board was certified. 34-16 (c) A local workforce development board created under this 34-17 Act is required to contract with the department for the provision 34-18 of employment service functions that were previously carried out at 34-19 the local level by the Texas Employment Commission. This 34-20 subsection expires January 1, 1998. 34-21 (d) A local workforce development board shall not have 34-22 authority to approve spending for postsecondary vocational and 34-23 technical education programs until January 1, 1995. 34-24 (e) A local workforce development board shall not have 34-25 authority over funds for adult basic education and literacy 34-26 programs in the area served by the board until January 1, 1995. 34-27 SECTION 8.04. Emergency. The importance of this legislation 35-1 and the crowded condition of the calendars in both houses create an 35-2 emergency and an imperative public necessity that the 35-3 constitutional rule requiring bills to be read on three several 35-4 days in each house be suspended, and this rule is hereby suspended, 35-5 and that this Act take effect and be in force according to its 35-6 terms, and it is so enacted.