S.B. No. 130
AN ACT
1-1 relating to the establishment, operation, and funding of an
1-2 employment training program; reducing the entry level and
1-3 replenishment unemployment tax rates; imposing an assessment for
1-4 employment training purposes.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE I. LEGISLATIVE FINDINGS
1-7 SECTION 1.01. LEGISLATIVE FINDINGS. The legislature finds
1-8 that:
1-9 (1) the development and expansion of business,
1-10 commerce, and industry are essential to the economic growth of this
1-11 state and to the full employment, welfare, and prosperity of its
1-12 citizens;
1-13 (2) the number of people seeking jobs in this state
1-14 exceeds the number of available jobs;
1-15 (3) despite the large number of unemployed job
1-16 seekers, many employers in new and expanding industries are having
1-17 difficulty finding the skilled workers they need, and a similar
1-18 problem exists in industries in which overall employment may not be
1-19 expanding but in which there is an acute need for skilled workers
1-20 in particular occupations;
1-21 (4) studies have shown that the availability of an
1-22 educated, skilled work force is the single most important factor in
1-23 an employer's decision to relocate or expand its operations;
2-1 (5) the economy of this state is today being
2-2 challenged by competition from other states and other countries,
2-3 and our success in meeting that challenge will depend largely on
2-4 our ability to maintain and improve a skilled and productive work
2-5 force;
2-6 (6) employers, workers, organized labor, and
2-7 government need to work together to ensure that the labor force of
2-8 this state is prepared to succeed in the economic environment of
2-9 the next century;
2-10 (7) the emergence of a global economy and the possible
2-11 creation of the world's largest market through the North American
2-12 Free Trade Agreement create opportunities for economic growth and
2-13 social prosperity from which this state only can benefit if its
2-14 work force is educated, skilled, and prepared to excel; and
2-15 (8) structural changes in the Texas economy and
2-16 decreases in United States military expenditures affecting base
2-17 closings and defense industries will require new training and
2-18 retraining initiatives.
2-19 ARTICLE II. SMART JOBS FUND PROGRAM
2-20 SECTION 2.01. Chapter 481, Government Code, is amended by
2-21 adding Subchapter J to read as follows:
2-22 SUBCHAPTER J. SMART JOBS FUND PROGRAM
2-23 Sec. 481.151. DEFINITIONS. In this subchapter:
2-24 (1) "Business development" includes relocation,
2-25 expansion, turnover, diversification, or technological change.
3-1 (2) "Demand occupation" means an occupation in which,
3-2 as a result of business development, there are or will be positive
3-3 growth-to-replacement ratios within the next 12 to 24 months,
3-4 according to the best available sources of state and local labor
3-5 market information.
3-6 (3) "Employee" means an individual who performs
3-7 services for another under a contract of hire, whether express or
3-8 implied, or oral or written.
3-9 (4) "Employer" means a person that employs one or more
3-10 employees.
3-11 (5) "Executive director" means the executive director
3-12 of the department.
3-13 (6) "Existing employer" means an employer that:
3-14 (A) has been liable to pay contributions under
3-15 the Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
3-16 Vernon's Texas Civil Statutes) for more than one year;
3-17 (B) has employees; and
3-18 (C) is in compliance with the reporting and
3-19 payment requirements of that Act, as determined by the Texas
3-20 Employment Commission.
3-21 (7) "Family wage job" means a job that offers:
3-22 (A) wages equal to or greater than the state
3-23 average weekly wage;
3-24 (B) benefits, such as vacation leave, sick
3-25 leave, and insurance coverage;
4-1 (C) reasonable opportunities for continued skill
4-2 development and career path advancement; and
4-3 (D) a substantial likelihood of long-term job
4-4 security.
4-5 (8) "In-kind contribution" means a noncash
4-6 contribution of goods and services provided by an employer as all
4-7 or part of the employer's matching share of a grant or project.
4-8 (9) "Job" means employment on a basis customarily
4-9 considered full-time for the applicable occupation and industry.
4-10 (10) "Minority employer" means a business entity at
4-11 least 51 percent of which is owned by minority group members or, in
4-12 the case of a corporation, at least 51 percent of the shares of
4-13 which are owned by minority group members and that:
4-14 (A) is managed and, in daily operations, is
4-15 controlled by minority group members; and
4-16 (B) is a domestic business entity with a home or
4-17 branch office located in this state and is not a branch or
4-18 subsidiary of a foreign corporation or other foreign business
4-19 entity.
4-20 (11) "Minority group members" include:
4-21 (A) African-Americans;
4-22 (B) American Indians;
4-23 (C) Asian-Americans; and
4-24 (D) Mexican-Americans and other Americans of
4-25 Hispanic origin.
5-1 (12) "Program" means the smart jobs fund program
5-2 created under this subchapter.
5-3 (13) "Project" means a specific employment training
5-4 project developed and implemented under this subchapter.
5-5 (14) "Provider" means a person that provides
5-6 employment-related training. The term includes employers, employer
5-7 associations, labor organizations, community-based organizations,
5-8 training consultants, public and private schools, technical
5-9 institutes, junior or community colleges, senior colleges,
5-10 universities, and proprietary schools, as defined by Section 32.11,
5-11 Education Code.
5-12 (15) "State average weekly wage" means the annual
5-13 average of the average weekly wage of manufacturing production
5-14 workers in this state as of September 1 of each year, as determined
5-15 by the Texas Employment Commission under Section 3(b), Texas
5-16 Unemployment Compensation Act (Article 5221b-1, Vernon's Texas
5-17 Civil Statutes), adjusted for regional variances.
5-18 (16) "Targeted industry" means an industry that
5-19 promotes high-skill, high-wage jobs using Texas-available material
5-20 and human resources, as determined by the department.
5-21 (17) "Trainee" means a participant in a project funded
5-22 under this subchapter.
5-23 (18) "Wages" means all forms of compensation or
5-24 remuneration, excluding benefits, payable for a specific period to
5-25 an employee for personal services rendered by that employee.
6-1 Sec. 481.152. SMART JOBS FUND PROGRAM; ADMINISTRATION.
6-2 (a) The smart jobs fund program is created in the department as a
6-3 work force development incentive program to enhance employment
6-4 opportunities and to meet the needs of existing and new industries
6-5 in this state.
6-6 (b) The program shall give priority to the creation and
6-7 retention of family wage jobs and focus on employers in industries
6-8 that promote high-skill, high-wage jobs in high-technology areas
6-9 and on demand occupations that provide those jobs. At least 60
6-10 percent of the money spent under the program shall be used for
6-11 projects that assist existing employers.
6-12 (c) The department shall administer the program.
6-13 (d) The executive director may employ personnel as necessary
6-14 to administer the program.
6-15 Sec. 481.153. RULES. The policy board shall adopt rules as
6-16 necessary to implement the program.
6-17 Sec. 481.154. FUNDING. (a) The smart jobs fund is
6-18 established as a special trust fund in the custody of the state
6-19 treasurer separate and apart from all public money or funds of this
6-20 state. The fund is composed of:
6-21 (1) money transferred into the fund under Section 9e,
6-22 Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
6-23 Vernon's Texas Civil Statutes);
6-24 (2) gifts, grants, and other donations received by the
6-25 department for the fund; and
7-1 (3) any amounts appropriated by the legislature for
7-2 the program.
7-3 (b) The program is funded through the smart jobs fund.
7-4 (c) Money in the smart jobs fund may be used for program
7-5 administration, marketing expenses, and evaluation of the program.
7-6 These costs of the department in any fiscal year may not exceed
7-7 five percent of the total funds deposited in the smart jobs fund in
7-8 that year.
7-9 (d) If, during any three consecutive months, the balance in
7-10 the smart jobs fund exceeds 0.15 percent of the total taxable wages
7-11 for the four calendar quarters ending the preceding June 30, as
7-12 computed under Section 7(c)(8), Texas Unemployment Compensation Act
7-13 (Article 5221b-5, Vernon's Texas Civil Statutes), the executive
7-14 director shall immediately transfer the excess to the Unemployment
7-15 Compensation Fund created under Section 9(a), Texas Unemployment
7-16 Compensation Act (Article 5221b-7, Vernon's Texas Civil Statutes).
7-17 Sec. 481.155. GRANTS. (a) The executive director may award
7-18 grants for projects that meet the requirements of this chapter.
7-19 The executive director shall attempt to ensure that at least 20
7-20 percent of the total dollar amount of grants awarded under the
7-21 program are awarded to minority employers.
7-22 (b) The program is job-driven. A grant may not be awarded
7-23 unless each employer participating in the project certifies that:
7-24 (1) a job or job opening exists or will exist at the
7-25 end of the project for which the grant is sought; and
8-1 (2) the job or job opening will be filled by a
8-2 participant in the project.
8-3 (c) A grant may not be awarded for a project under this
8-4 section unless each employer participating in the project certifies
8-5 that the starting wage for a new job created through the project
8-6 will be greater than 66-2/3 percent of the state average weekly
8-7 wage and that the wage for a job existing on the date that the
8-8 project is scheduled to begin will be increased to the greater of:
8-9 (1) 10 percent over the wage in effect on the day
8-10 before the date on which the project is scheduled to begin for that
8-11 job; or
8-12 (2) 75 percent of the state average weekly wage.
8-13 (d) An employer may apply for a grant under this chapter if
8-14 the employer is required to reduce or eliminate the employer's work
8-15 force because of reductions in overall employment within an
8-16 industry or a substantial change in the skills required to continue
8-17 the employer's business because of technological changes or other
8-18 factors. In awarding a grant under this subsection, the executive
8-19 director may modify the requirements of Subsection (c). Grants
8-20 awarded under this subsection for which the executive director has
8-21 modified the requirements of Subsection (c) may not, in any fiscal
8-22 year, exceed 10 percent of the total dollar amount of grants
8-23 awarded under the program in that year.
8-24 (e) Unless modified by the executive director under rules
8-25 adopted by the policy board, a grant may not be awarded for a
9-1 project unless each employer participating in the project certifies
9-2 that it will continue to spend on nonmanagerial training an amount
9-3 from private sources equal to the average amount spent by that
9-4 employer on such training for the most recent two-year period.
9-5 (f) A grant may not be awarded for a project if the project
9-6 will impair existing contracts for services or collective
9-7 bargaining agreements, except that a project inconsistent with the
9-8 terms of a collective bargaining agreement may be undertaken with
9-9 the written concurrence of the collective bargaining unit and the
9-10 employer or employers who are parties to the agreement.
9-11 Sec. 481.156. GRANT APPLICATION. (a) The following may
9-12 apply for a grant under this subchapter:
9-13 (1) one or more employers to secure training for
9-14 demand occupations in a particular industry;
9-15 (2) one or more employers acting in partnership with
9-16 an employer organization, labor organization, or community-based
9-17 organization to secure training for demand occupations in a
9-18 particular industry; or
9-19 (3) one or more employers acting in partnership with a
9-20 consortium composed of one or more providers to secure training for
9-21 demand occupations in a particular industry.
9-22 (b) A grant application must be filed with the department in
9-23 a form approved by the executive director and must include a
9-24 complete business and training plan, including:
9-25 (1) the number and kind of jobs available;
10-1 (2) the skills and competencies required for the
10-2 identified jobs;
10-3 (3) the wages to be paid to trainees on successful
10-4 completion of the project;
10-5 (4) the goals, objectives, and outcome measures for
10-6 the project;
10-7 (5) the proposed curriculum for the project; and
10-8 (6) the projected cost per person enrolled, trained,
10-9 hired, and retained in employment.
10-10 (c) The department may provide assistance to applicants in
10-11 formulating the business and training plan required under
10-12 Subsection (b).
10-13 (d) The department shall minimize the length of the
10-14 application form.
10-15 (e) The executive director shall act on a completed
10-16 application not later than the 30th day after the date on which the
10-17 application is filed with the department.
10-18 Sec. 481.157. MATCHING REQUIREMENTS; EXEMPTIONS. (a) Money
10-19 provided under a grant for a project must be matched by private
10-20 funds provided by the employer benefiting from the project in an
10-21 amount at least equal to the amount provided by the grant.
10-22 (b) The policy board may adopt rules modifying the
10-23 requirements of Subsection (a) for employers with fewer than 50
10-24 employees and may also adopt rules modifying the requirements of
10-25 Subsection (a) for projects that provide significant economic
11-1 benefits to an entire region of the state.
11-2 (c) Employer matches may include documented in-kind
11-3 contributions as well as wages paid to trainees during the training
11-4 period.
11-5 Sec. 481.158. TRAINEES. The program shall give priority to
11-6 residents of this state.
11-7 Sec. 481.159. CONTRACTS. (a) The executive director may
11-8 approve any project that meets the requirements of this subchapter.
11-9 If the executive director approves a project and funds are
11-10 available, the department shall enter into a contract with the
11-11 grant applicant and with each employer participating in the
11-12 project. The contract must specify those skills and competencies
11-13 to be gained as a result of the project.
11-14 (b) Reimbursable costs in the contract may include only
11-15 those expenses related to direct training in job-related basic
11-16 skills, including literacy skills, job-related vocational skills,
11-17 and administrative costs. Total administrative costs for any
11-18 particular project may not exceed 10 percent of the project's
11-19 expenditures.
11-20 (c) Each contract must provide a schedule for payment of
11-21 smart jobs fund money. Twenty-five percent of the grant award
11-22 shall be withheld by the department for 90 days after the date of
11-23 completion of the project. If all of the trainees in the project
11-24 have been retained in employment for that 90-day period, the amount
11-25 of the grant award withheld shall be remitted to the employer. For
12-1 each trainee who is not retained in employment for that 90-day
12-2 period, the amount withheld shall be reduced by the amount of the
12-3 training costs for that trainee that is derived from grant money,
12-4 and any balance shall be remitted to the employer. If there is a
12-5 negative balance, the employer is liable for the amount of the
12-6 negative balance and shall remit that amount to the department not
12-7 later than the 30th day after the date on which the employer is
12-8 notified of the negative balance by the department.
12-9 Sec. 481.160. ANNUAL REPORT. (a) The executive director
12-10 shall report to the governor and the legislature at the end of each
12-11 fiscal year on the status of the program.
12-12 (b) The annual report must include for that fiscal year:
12-13 (1) the number of employers receiving grants under the
12-14 program;
12-15 (2) the total amount of grants awarded;
12-16 (3) the value, expressed in dollars and as a
12-17 percentage of total training expenditures, of matching
12-18 contributions made by employers;
12-19 (4) the number of small businesses, as defined by
12-20 Section 481.101(3), that receive grants under the program and the
12-21 total amount of the grants awarded to those businesses;
12-22 (5) the number of businesses located in enterprise
12-23 zones, as that term is defined by the Texas Enterprise Zone Act
12-24 (Article 5190.7, Vernon's Texas Civil Statutes), that receive
12-25 grants under the program and the total amount of the grants awarded
13-1 to those businesses;
13-2 (6) the geographical distribution of employers
13-3 receiving grants under the program;
13-4 (7) the total number of jobs created, enhanced, or
13-5 retained under the program, reported by region of the state and by
13-6 occupation;
13-7 (8) the wage levels of trainees entering or returning
13-8 to the work force, broken down by current employees undergoing
13-9 retraining and new hires, at three months, one year, and three
13-10 years after the conclusion of their training;
13-11 (9) the number and percentage of participating
13-12 employers that provide workers' compensation insurance coverage and
13-13 the number and percentage of employees covered;
13-14 (10) the number and percentage of participating
13-15 employers that offer health care insurance coverage and the number
13-16 and percentage of employees covered;
13-17 (11) the number and percentage of women employers and
13-18 minority employers receiving grants under the program and the total
13-19 amount of the grants awarded, broken out by group;
13-20 (12) the number and percentage of women, minority
13-21 group members, and disabled individuals participating as trainees
13-22 in training projects, broken out by group; and
13-23 (13) the number and percentage of women private
13-24 providers and private providers who are minority group members
13-25 utilized by employers in training projects, broken out by group.
14-1 Sec. 481.161. EXPIRATION. This subchapter expires
14-2 December 31, 1999.
14-3 ARTICLE III. EMPLOYMENT TRAINING INVESTMENT ASSESSMENT;
14-4 PROGRAM FUNDING
14-5 SECTION 3.01. Subsection (b), Section 7, Texas Unemployment
14-6 Compensation Act (Article 5221b-5, Vernon's Texas Civil Statutes),
14-7 is amended to read as follows:
14-8 (b) Rate of contributions: Except as provided by subsection
14-9 (e) of this Section, each <Each> employer shall pay contributions
14-10 equal to two and seven-tenths percentum (2 7/10%) of wages paid by
14-11 him with respect to employment, except as provided in subsection
14-12 (c) of this Section.
14-13 SECTION 3.02. Subdivision (1), Subsection (c), Section 7,
14-14 Texas Unemployment Compensation Act (Article 5221b-5, Vernon's
14-15 Texas Civil Statutes), is amended to read as follows:
14-16 (1) Except as provided by Subsection (f) of this
14-17 section, as <As> of October 1 of each year, the Commission shall
14-18 establish by industry an average contribution rate for the
14-19 immediately succeeding calendar year for each Major Group listed in
14-20 the Standard Industrial Classification Manual published by the
14-21 United States Office of Management and Budget. The Commission
14-22 shall establish the annual contribution rate for a particular
14-23 industry by averaging the contribution rates paid by employers in
14-24 that industry over the preceding year ending September 30, based on
14-25 the employment records maintained by the Commission. The
15-1 Commission shall assign each employer to a Major Group in
15-2 accordance with the definitions contained in the manual. An
15-3 employer shall pay contributions for the calendar year in which the
15-4 person becomes an employer at the rate established for that year
15-5 for the Major Group to which the employer is assigned, or at two
15-6 and seven-tenths percent (2.7%) of the taxable wages paid by that
15-7 employer, whichever rate is greater, until his account has been
15-8 chargeable with benefits throughout each calendar month of the four
15-9 (4) consecutive calendar quarters immediately preceding the date as
15-10 of which such employer's rate is determined. The contribution rate
15-11 of each employer who has had at least four (4) such calendar
15-12 quarters of compensation experience shall be determined as provided
15-13 below; except that the contribution rate of any employing unit
15-14 which becomes an employer for the first time during the calendar
15-15 year 1972, other than one which first becomes an employer because
15-16 of the provisions of subsection 19(f)(2) of this Act, shall be one
15-17 percent (1%) rather than two and seven-tenths percent (2.7%) until
15-18 such time as his account has been chargeable with benefits for four
15-19 (4) consecutive calendar quarters and an experience rate is
15-20 computed for him in accordance with this Act.
15-21 SECTION 3.03. Subdivision (8), Subsection (c), Section 7,
15-22 Texas Unemployment Compensation Act (Article 5221b-5, Vernon's
15-23 Texas Civil Statutes), is amended to read as follows:
15-24 (8) Except as provided by Subsection (g) of this
15-25 section, in <In> addition to the general rate provided by
16-1 Subdivision (6) of this subsection, each employer entitled to an
16-2 experience rate shall pay a replenishment tax at a rate equal to a
16-3 percentage, stated to the nearest hundredth, derived from the
16-4 following numerator and denominator. The numerator is an amount
16-5 equal to one-half of the amount of benefits paid during the twelve
16-6 (12) months ending the preceding September 30 that are not charged
16-7 to an employer's account, that are charged to employers' accounts
16-8 after the employers have reached maximum liability because of the
16-9 maximum tax rate, or that are charged but considered not
16-10 collectible. The denominator is the total taxable wages for the
16-11 four quarters ending the preceding June 30.
16-12 SECTION 3.04. Section 7, Texas Unemployment Compensation Act
16-13 (Article 5221b-5, Vernon's Texas Civil Statutes), is amended by
16-14 adding Subsections (e), (f), and (g) to read as follows:
16-15 (e) Rate of contributions: Notwithstanding Subsection (b)
16-16 of this section, on and after January 1, 1994, each employer shall
16-17 pay contributions equal to two and six-tenths percent (2-6/10%) of
16-18 wages paid by him with respect to employment, except as provided in
16-19 Subsection (c) of this section. This subsection expires
16-20 December 31, 1999.
16-21 (f) Notwithstanding Subsection (c)(1) of this section, on
16-22 and after January 1, 1994, each employer's contribution rate shall
16-23 be two and six-tenths percent (2-6/10%) until his account has been
16-24 chargeable with benefits throughout each calendar month of the four
16-25 (4) consecutive calendar quarters immediately preceding the date as
17-1 of which such employer's rate is determined. The contribution rate
17-2 of each employer who has had at least four (4) such calendar
17-3 quarters of compensation experience shall be determined as provided
17-4 by Subsection (c)(4) of this section. This subsection expires
17-5 December 31, 1999.
17-6 (g) Notwithstanding Subsection (c)(8) of this section, on
17-7 and after January 1, 1994, in addition to the general rate provided
17-8 by Subsection (c)(6) of this section, each employer entitled to an
17-9 experience rate shall pay a replenishment tax at a rate equal to a
17-10 percentage, stated to the nearest hundredth, computed by dividing
17-11 the amount equal to one-half of the amount of benefits paid during
17-12 the twelve (12) months ending the preceding September 30 that are
17-13 not charged to an employer's account, that are charged to
17-14 employers' accounts after the employers have reached maximum
17-15 liability because of the maximum tax rate, or that are charged but
17-16 considered not collectible by an amount equal to the total taxable
17-17 wages for the four quarters ending the preceding June 30, and
17-18 subtracting 0.1 from the quotient. This subsection expires
17-19 December 31, 1999.
17-20 SECTION 3.05. The Texas Unemployment Compensation Act
17-21 (Article 5221b-1 et seq., Vernon's Texas Civil Statutes) is amended
17-22 by adding Section 9e to read as follows:
17-23 Sec. 9e. EMPLOYMENT TRAINING INVESTMENT ASSESSMENT; HOLDING
17-24 FUND; SMART JOBS FUND. (a) In addition to any taxes imposed by
17-25 this Act, there is hereby levied on each employer paying
18-1 contributions under this Act a separate and additional assessment
18-2 of 0.1 percent of wages paid by the employer. This assessment
18-3 shall be known as the employment training investment assessment and
18-4 shall be deposited by the commission into the holding fund created
18-5 under Subsection (b) of this section. The assessment shall be due
18-6 at the same time, collected in the same manner, and subject to the
18-7 same penalties and interest as a contribution assessed under
18-8 Section 7 of this Act (Article 5221b-5, Vernon's Texas Civil
18-9 Statutes).
18-10 (b) The holding fund is established as a special trust fund
18-11 in the custody of the state treasurer separate and apart from all
18-12 public money or funds of this state. The state treasurer shall
18-13 administer the fund in accordance with the directions of the
18-14 commission. Interest accruing on amounts in the holding fund shall
18-15 be deposited on a quarterly basis into the Unemployment
18-16 Compensation Fund.
18-17 (c) If, on September 1 of any calendar year, the commission
18-18 determines that the amount in the Unemployment Compensation Fund
18-19 will exceed 100 percent of its floor as computed under Section
18-20 7(c)(6)(B) of this Act (Article 5221b-5, Vernon's Texas Civil
18-21 Statutes) on the next October 1 computation date, the commission
18-22 shall transfer the amount in the holding fund to the smart jobs
18-23 fund created under Section 481.154, Government Code.
18-24 (d) If, on September 1 of any calendar year, the commission
18-25 determines that the amount in the Unemployment Compensation Fund
19-1 will be at or below 100 percent of its floor as computed under
19-2 Section 7(c)(6)(B) of this Act (Article 5221b-5, Vernon's Texas
19-3 Civil Statutes) on the next October 1 computation date, the
19-4 commission shall transfer to the Unemployment Compensation Fund as
19-5 much of the amount in the holding fund as is necessary to raise the
19-6 amount in the Unemployment Compensation Fund to 100 percent of its
19-7 floor, up to and including the entire amount in the holding fund.
19-8 The commission shall transfer any balance remaining in the holding
19-9 fund to the smart jobs fund created under Section 481.154,
19-10 Government Code.
19-11 (e) This section expires December 31, 1999.
19-12 ARTICLE IV. REPEALER
19-13 SECTION 4.01. Section 481.076, Government Code, is repealed.
19-14 ARTICLE V. TRANSITION; EFFECTIVE DATES; EMERGENCY CLAUSE
19-15 SECTION 5.01. (a) Except as provided by Subsections (b) and
19-16 (c) of this section, this Act takes effect September 1, 1993.
19-17 (b) Except as provided by Subsection (c) of this section,
19-18 the assessment imposed under Section 9e, Texas Unemployment
19-19 Compensation Act (Article 5221b-1 et seq., Vernon's Texas Civil
19-20 Statutes), as added by Article III of this Act, applies only to
19-21 wages paid on or after January 1, 1994.
19-22 (c) If, on October 1, 1993, the amount in the Unemployment
19-23 Compensation Fund is less than the floor of that fund, as computed
19-24 under Paragraph (B), Subdivision (6), Subsection (c), Section 7,
19-25 Texas Unemployment Compensation Act (Article 5221b-5, Vernon's
20-1 Texas Civil Statutes), Article III of this Act takes effect
20-2 January 1, 1995.
20-3 SECTION 5.02. If, as of June 1, 1994, the Texas Employment
20-4 Commission determines that the amount in the Unemployment
20-5 Compensation Fund will exceed 100 percent of the floor of that
20-6 fund, as computed under Paragraph (B), Subdivision (6), Subsection
20-7 (c), Section 7, Texas Unemployment Compensation Act (Article
20-8 5221b-5, Vernon's Texas Civil Statutes), on the next October 1
20-9 computation date, the commission shall immediately transfer from
20-10 the holding fund established under Subsection (b), Section 9e,
20-11 Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
20-12 Vernon's Texas Civil Statutes), as added by this Act, into the
20-13 smart jobs fund established under Section 481.154, Government Code,
20-14 as added by this Act, an amount equal to 25 percent of the
20-15 anticipated balance in the holding fund as of September 1, 1994.
20-16 SECTION 5.03. If the work force development functions and
20-17 job training functions performed by the Texas Employment
20-18 Commission, Texas Department of Commerce, and other state agencies
20-19 are consolidated for performance by one state agency by the 73rd
20-20 Legislature, it is the intent of the legislature that the
20-21 administration of the smart jobs fund program created under this
20-22 Act be transferred to that agency, along with any records or
20-23 property relating to the operation of the smart jobs fund program.
20-24 SECTION 5.04. The importance of this legislation and the
20-25 crowded condition of the calendars in both houses create an
21-1 emergency and an imperative public necessity that the
21-2 constitutional rule requiring bills to be read on three several
21-3 days in each house be suspended, and this rule is hereby suspended.