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.