1-1  By:  Montford, Ellis                                   S.B. No. 130
    1-2        (In the Senate - Filed January 18, 1993; January 19, 1993,
    1-3  read first time and referred to Committee on Economic Development;
    1-4  February 2, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 11, Nays 0;
    1-6  February 2, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Parker             x                               
   1-10        Lucio              x                               
   1-11        Ellis              x                               
   1-12        Haley              x                               
   1-13        Harris of Dallas   x                               
   1-14        Harris of Tarrant  x                               
   1-15        Leedom             x                               
   1-16        Madla              x                               
   1-17        Rosson             x                               
   1-18        Shapiro            x                               
   1-19        Wentworth          x                               
   1-20  COMMITTEE SUBSTITUTE FOR S.B. No. 130                    By:  Ellis
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the establishment, operation, and funding of an
   1-24  employment training program; reducing the entry level and
   1-25  replenishment unemployment tax rates; imposing an assessment for
   1-26  employment training purposes.
   1-27        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-28                   ARTICLE I.  LEGISLATIVE FINDINGS
   1-29        SECTION 1.01.  LEGISLATIVE FINDINGS.  The legislature finds
   1-30  that:
   1-31              (1)  the development and expansion of business,
   1-32  commerce, and industry are essential to the economic growth of this
   1-33  state and to the full employment, welfare, and prosperity of its
   1-34  citizens;
   1-35              (2)  the number of people seeking jobs in this state
   1-36  exceeds the number of available jobs;
   1-37              (3)  despite the large number of unemployed job
   1-38  seekers, many employers in new and expanding industries are having
   1-39  difficulty finding the skilled workers they need, and a similar
   1-40  problem exists in industries in which overall employment may not be
   1-41  expanding but in which there is an acute need for skilled workers
   1-42  in particular occupations;
   1-43              (4)  studies have shown that the availability of an
   1-44  educated, skilled work force is the single most important factor in
   1-45  an employer's decision to relocate or expand its operations;
   1-46              (5)  the economy of this state is today being
   1-47  challenged by competition from other states and other countries,
   1-48  and our success in meeting that challenge will depend largely on
   1-49  our ability to maintain and improve a skilled and productive work
   1-50  force;
   1-51              (6)  employers, workers, organized labor, and
   1-52  government need to work together to ensure that the labor force of
   1-53  this state is prepared to succeed in the economic environment of
   1-54  the next century;
   1-55              (7)  the emergence of a global economy and the possible
   1-56  creation of the world's largest market through the North American
   1-57  Free Trade Agreement create opportunities for economic growth and
   1-58  social prosperity from which this state only can benefit if its
   1-59  work force is educated, skilled, and prepared to excel; and
   1-60              (8)  structural changes in the Texas economy and
   1-61  decreases in United States military expenditures affecting base
   1-62  closings and defense industries will require new training and
   1-63  retraining initiatives.
   1-64                 ARTICLE II.  SMART JOBS FUND PROGRAM
   1-65        SECTION 2.01.  Chapter 481, Government Code, is amended by
   1-66  adding Subchapter J to read as follows:
   1-67                SUBCHAPTER J.  SMART JOBS FUND PROGRAM
   1-68        Sec. 481.151.  DEFINITIONS.  In this subchapter:
    2-1              (1)  "Business development" includes relocation,
    2-2  expansion, turnover, diversification, or technological change.
    2-3              (2)  "Demand occupation" means an occupation in which,
    2-4  as a result of business development, there are or will be positive
    2-5  growth-to-replacement ratios within the next 12 to 24 months,
    2-6  according to the best available sources of state and local labor
    2-7  market information.
    2-8              (3)  "Employee" means an individual who performs
    2-9  services for another under a contract of hire, whether express or
   2-10  implied, or oral or written.
   2-11              (4)  "Employer" means a person that employs one or more
   2-12  employees.
   2-13              (5)  "Executive director" means the executive director
   2-14  of the department.
   2-15              (6)  "Existing employer" means an employer that:
   2-16                    (A)  has been liable to pay contributions under
   2-17  the Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
   2-18  Vernon's Texas Civil Statutes) for more than one year;
   2-19                    (B)  has employees; and
   2-20                    (C)  is in compliance with the reporting and
   2-21  payment requirements of that Act, as determined by the Texas
   2-22  Employment Commission.
   2-23              (7)  "Family wage job" means a job that offers:
   2-24                    (A)  wages equal to or greater than the state
   2-25  average weekly wage;
   2-26                    (B)  benefits, such as vacation leave, sick
   2-27  leave, and insurance coverage;
   2-28                    (C)  reasonable opportunities for continued skill
   2-29  development and career path advancement; and
   2-30                    (D)  a substantial likelihood of long-term job
   2-31  security.
   2-32              (8)  "In-kind contribution" means a noncash
   2-33  contribution of goods and services provided by an employer as all
   2-34  or part of the employer's matching share of a grant or project.
   2-35              (9)  "Job" means employment on a basis customarily
   2-36  considered full-time for the applicable occupation and industry.
   2-37              (10)  "Minority employer" means a business entity at
   2-38  least 51 percent of which is owned by minority group members or, in
   2-39  the case of a corporation, at least 51 percent of the shares of
   2-40  which are owned by minority group members and that:
   2-41                    (A)  is managed and, in daily operations, is
   2-42  controlled by minority group members; and
   2-43                    (B)  is a domestic business entity with a home or
   2-44  branch office located in this state and is not a branch or
   2-45  subsidiary of a foreign corporation or other foreign business
   2-46  entity.
   2-47              (11)  "Minority group members" include:
   2-48                    (A)  African-Americans;
   2-49                    (B)  American Indians;
   2-50                    (C)  Asian-Americans; and
   2-51                    (D)  Mexican-Americans and other Americans of
   2-52  Hispanic origin.
   2-53              (12)  "Program" means the smart jobs fund program
   2-54  created under this subchapter.
   2-55              (13)  "Project" means a specific employment training
   2-56  project developed and implemented under this subchapter.
   2-57              (14)  "Provider" means a person that provides
   2-58  employment-related training.  The term includes employers, employer
   2-59  associations, labor organizations, community-based organizations,
   2-60  training consultants, public and private schools, technical
   2-61  institutes, junior or community colleges, senior colleges,
   2-62  universities, and proprietary schools, as defined by Section 32.11,
   2-63  Education Code.
   2-64              (15)  "State average weekly wage" means the annual
   2-65  average of the average weekly wage of manufacturing production
   2-66  workers in this state as of September 1 of each year, as determined
   2-67  by the Texas Employment Commission under Section 3(b), Texas
   2-68  Unemployment Compensation Act (Article 5221b-1, Vernon's Texas
   2-69  Civil Statutes), adjusted for regional variances.
   2-70              (16)  "Targeted industry" means an industry that
    3-1  promotes high-skill, high-wage jobs using Texas-available material
    3-2  and human resources, as determined by the department.
    3-3              (17)  "Trainee" means a participant in a project funded
    3-4  under this subchapter.
    3-5              (18)  "Wages" means all forms of compensation or
    3-6  remuneration, excluding benefits, payable for a specific period to
    3-7  an employee for personal services rendered by that employee.
    3-8        Sec. 481.152.  SMART JOBS FUND PROGRAM; ADMINISTRATION.
    3-9  (a)  The smart jobs fund program is created in the department as a
   3-10  work force development incentive program to enhance employment
   3-11  opportunities and to meet the needs of existing and new industries
   3-12  in this state.
   3-13        (b)  The program shall give priority to the creation and
   3-14  retention of family wage jobs and focus on employers in industries
   3-15  that promote high-skill, high-wage jobs in high-technology areas
   3-16  and on demand occupations that provide those jobs.  At least 50
   3-17  percent of the money spent under the program shall be used for
   3-18  projects that assist existing employers.
   3-19        (c)  The department shall administer the program.
   3-20        (d)  The executive director may employ personnel as necessary
   3-21  to administer the program.
   3-22        Sec. 481.153.  RULES.  The policy board shall adopt rules as
   3-23  necessary to implement the program.
   3-24        Sec. 481.154.  FUNDING.  (a)  The smart jobs fund is
   3-25  established as a special trust fund in the custody of the state
   3-26  treasurer separate and apart from all public money or funds of this
   3-27  state.  The fund is composed of:
   3-28              (1)  money transferred into the fund under Section 9e,
   3-29  Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
   3-30  Vernon's Texas Civil Statutes);
   3-31              (2)  gifts, grants, and other donations received by the
   3-32  department for the fund; and
   3-33              (3)  any amounts appropriated by the legislature for
   3-34  the program.
   3-35        (b)  The program is funded through the smart jobs fund.
   3-36        (c)  Money in the smart jobs fund may be used for program
   3-37  administration, marketing expenses, and evaluation of the program.
   3-38  These costs in any fiscal year may not exceed five percent of the
   3-39  total funds deposited in the smart jobs fund in that year.
   3-40        (d)  If, during any three consecutive months, the balance in
   3-41  the smart jobs fund exceeds 0.15 percent of the total taxable wages
   3-42  for the four calendar quarters ending the preceding June 30, as
   3-43  computed under Section 7(c)(8), Texas Unemployment Compensation Act
   3-44  (Article 5221b-5, Vernon's Texas Civil Statutes), the executive
   3-45  director shall immediately transfer the excess to the Unemployment
   3-46  Compensation Fund created under Section 9(a), Texas Unemployment
   3-47  Compensation Act (Article 5221b-7, Vernon's Texas Civil Statutes).
   3-48        Sec. 481.155.  GRANTS.  (a)  The executive director may award
   3-49  grants for projects that meet the requirements of this chapter.
   3-50  The executive director shall attempt to ensure that at least 20
   3-51  percent of the total dollar amount of grants awarded under the
   3-52  program are awarded to minority employers.
   3-53        (b)  The program is job-driven.  A grant may not be awarded
   3-54  unless each employer participating in the project certifies that:
   3-55              (1)  a job or job opening exists or will exist at the
   3-56  end of the project for which the grant is sought; and
   3-57              (2)  the job or job opening will be filled by a
   3-58  participant in the project.
   3-59        (c)  A grant may not be awarded for a project under this
   3-60  section unless each employer participating in the project certifies
   3-61  that the starting wage for a new job created through the project
   3-62  will be greater than 66-2/3 percent of the state average weekly
   3-63  wage and that the wage for a job existing on the date that the
   3-64  project is scheduled to begin will be increased to the greater of:
   3-65              (1)  10 percent over the wage in effect on the day
   3-66  before the date on which the project is scheduled to begin for that
   3-67  job; or
   3-68              (2)  75 percent of the state average weekly wage.
   3-69        (d)  An employer may apply for a grant under this chapter if
   3-70  the employer is required to reduce or eliminate the employer's work
    4-1  force because of reductions in overall employment within an
    4-2  industry or a substantial change in the skills required to continue
    4-3  the employer's business because of technological changes or other
    4-4  factors.  In awarding a grant under this subsection, the executive
    4-5  director may modify the requirements of Subsection (c).
    4-6        (e)  A grant may not be awarded for a project if the project
    4-7  will impair existing contracts for services or collective
    4-8  bargaining agreements, except that a project inconsistent with the
    4-9  terms of a collective bargaining agreement may be undertaken with
   4-10  the written concurrence of the collective bargaining unit and the
   4-11  employer or employers who are parties to the agreement.
   4-12        Sec. 481.156.  GRANT APPLICATION.  (a)  The following may
   4-13  apply for a grant under this subchapter:
   4-14              (1)  one or more employers to secure training for
   4-15  demand occupations in a particular industry;
   4-16              (2)  one or more employers acting in partnership with
   4-17  an employer organization, labor organization, or community-based
   4-18  organization to secure training for demand occupations in a
   4-19  particular industry; or
   4-20              (3)  one or more employers acting in partnership with a
   4-21  consortium composed of one or more providers to secure training for
   4-22  demand occupations in a particular industry.
   4-23        (b)  A grant application must be filed with the department in
   4-24  a form approved by the executive director and must include a
   4-25  complete business and training plan, including:
   4-26              (1)  the number and kind of jobs available;
   4-27              (2)  the skills and competencies required for the
   4-28  identified jobs;
   4-29              (3)  the wages to be paid to trainees on successful
   4-30  completion of the project;
   4-31              (4)  the goals, objectives, and outcome measures for
   4-32  the project;
   4-33              (5)  the proposed curriculum for the project; and
   4-34              (6)  the projected cost per person enrolled, trained,
   4-35  hired, and retained in employment.
   4-36        (c)  The department may provide assistance to applicants in
   4-37  formulating the business and training plan required under
   4-38  Subsection (b).
   4-39        (d)  The department shall minimize the length of the
   4-40  application form.
   4-41        (e)  The executive director shall act on a completed
   4-42  application not later than the 30th day after the date on which the
   4-43  application is filed with the department.
   4-44        Sec. 481.157.  MATCHING REQUIREMENTS; EXEMPTIONS.  (a)  Money
   4-45  provided under a grant for a project must be matched by private
   4-46  funds provided by the employer benefiting from the project in an
   4-47  amount at least equal to the amount provided by the grant.
   4-48        (b)  The policy board may adopt rules modifying the
   4-49  requirements of Subsection (a) for employers with fewer than 50
   4-50  employees and may also adopt rules modifying the requirements of
   4-51  Subsection (a) for projects that provide significant economic
   4-52  benefits to an entire region of the state.
   4-53        (c)  Employer matches may include documented in-kind
   4-54  contributions as well as wages paid to trainees during the training
   4-55  period.
   4-56        Sec. 481.158.  TRAINEES.  The program shall give priority to
   4-57  residents of this state.
   4-58        Sec. 481.159.  CONTRACTS.  (a)  The executive director may
   4-59  approve any project that meets the requirements of this subchapter.
   4-60  If the executive director approves a project and funds are
   4-61  available, the department shall enter into a contract with the
   4-62  grant applicant and with each employer participating in the
   4-63  project.  The contract must specify those skills and competencies
   4-64  to be gained as a result of the project.
   4-65        (b)  Reimbursable costs in the contract may include only
   4-66  those expenses related to direct training in job-related basic
   4-67  skills, including literacy skills, job-related vocational skills,
   4-68  and administrative costs.  Total administrative costs for any
   4-69  particular project may not exceed 10 percent of the project's
   4-70  expenditures.
    5-1        (c)  Each contract must provide a schedule for payment of
    5-2  smart jobs fund money.  Twenty-five percent of the grant award
    5-3  shall be withheld by the department for 90 days after the date of
    5-4  completion of the project.  If all of the trainees in the project
    5-5  have been retained in employment for that 90-day period, the amount
    5-6  of the grant award withheld shall be remitted to the employer.  For
    5-7  each trainee who is not retained in employment for that 90-day
    5-8  period, the amount withheld shall be reduced by the amount of the
    5-9  training costs for that trainee that is derived from grant money,
   5-10  and any balance shall be remitted to the employer.  If there is a
   5-11  negative balance, the employer is liable for the amount of the
   5-12  negative balance and shall remit that amount to the department not
   5-13  later than the 30th day after the date on which the employer is
   5-14  notified of the negative balance by the department.
   5-15        Sec. 481.160.  ANNUAL REPORT.  (a)  The executive director
   5-16  shall report to the governor and the legislature at the end of each
   5-17  fiscal year on the status of the program.
   5-18        (b)  The annual report must include for that fiscal year:
   5-19              (1)  the number of employers receiving grants under the
   5-20  program;
   5-21              (2)  the total amount of grants awarded;
   5-22              (3)  the value, expressed in dollars and as a
   5-23  percentage of total training expenditures, of matching
   5-24  contributions made by employers;
   5-25              (4)  the number of small businesses, as defined by
   5-26  Section 481.101(3), that receive grants under the program and the
   5-27  total amount of the grants awarded to those businesses;
   5-28              (5)  the number of businesses located in enterprise
   5-29  zones, as that term is defined by the Texas Enterprise Zone Act
   5-30  (Article 5190.7, Vernon's Texas Civil Statutes), that receive
   5-31  grants under the program and the total amount of the grants awarded
   5-32  to those businesses;
   5-33              (6)  the geographical distribution of employers
   5-34  receiving grants under the program;
   5-35              (7)  the total number of jobs created, enhanced, or
   5-36  retained under the program, reported by region of the state and by
   5-37  occupation;
   5-38              (8)  the wage levels of trainees entering or returning
   5-39  to the work force, broken down by current employees undergoing
   5-40  retraining and new hires, at three months, one year, and three
   5-41  years after the conclusion of their training;
   5-42              (9)  the number and percentage of participating
   5-43  employers that provide workers' compensation insurance coverage and
   5-44  the number and percentage of employees covered;
   5-45              (10)  the number and percentage of participating
   5-46  employers that offer health care insurance coverage and the number
   5-47  and percentage of employees covered;
   5-48              (11)  the number and percentage of women employers and
   5-49  minority employers receiving grants under the program and the total
   5-50  amount of the grants awarded;
   5-51              (12)  the number and percentage of women, minority
   5-52  group members, and disabled individuals participating as trainees
   5-53  in training projects; and
   5-54              (13)  the number and percentage of women private
   5-55  providers and private providers who are minority group members
   5-56  utilized by employers in training projects.
   5-57        Sec. 481.161.  EXPIRATION.  This subchapter expires
   5-58  December 31, 1999.
   5-59       ARTICLE III.  EMPLOYMENT TRAINING INVESTMENT ASSESSMENT;
   5-60                            PROGRAM FUNDING
   5-61        SECTION 3.01.  Subsection (b), Section 7, Texas Unemployment
   5-62  Compensation Act (Article 5221b-5, Vernon's Texas Civil Statutes),
   5-63  is amended to read as follows:
   5-64        (b)  Rate of contributions:  Except as provided by subsection
   5-65  (e) of this Section, each <Each> employer shall pay contributions
   5-66  equal to two and seven-tenths percentum (2 7/10%) of wages paid by
   5-67  him with respect to employment, except as provided in subsection
   5-68  (c) of this Section.
   5-69        SECTION 3.02.  Subdivision (1), Subsection (c), Section 7,
   5-70  Texas Unemployment Compensation Act (Article 5221b-5, Vernon's
    6-1  Texas Civil Statutes), is amended to read as follows:
    6-2              (1)  Except as provided by Subsection (f) of this
    6-3  section, as <As> of October 1 of each year, the Commission shall
    6-4  establish by industry an average contribution rate for the
    6-5  immediately succeeding calendar year for each Major Group listed in
    6-6  the Standard Industrial Classification Manual published by the
    6-7  United States Office of Management and Budget.  The Commission
    6-8  shall establish the annual contribution rate for a particular
    6-9  industry by averaging the contribution rates paid by employers in
   6-10  that industry over the preceding year ending September 30, based on
   6-11  the employment records maintained by the Commission.  The
   6-12  Commission shall assign each employer to a Major Group in
   6-13  accordance with the definitions contained in the manual.  An
   6-14  employer shall pay contributions for the calendar year in which the
   6-15  person becomes an employer at the rate established for that year
   6-16  for the Major Group to which the employer is assigned, or at two
   6-17  and seven-tenths percent (2.7%) of the taxable wages paid by that
   6-18  employer, whichever rate is greater, until his account has been
   6-19  chargeable with benefits throughout each calendar month of the four
   6-20  (4) consecutive calendar quarters immediately preceding the date as
   6-21  of which such employer's rate is determined.  The contribution rate
   6-22  of each employer who has had at least four (4) such calendar
   6-23  quarters of compensation experience shall be determined as provided
   6-24  below; except that the contribution rate of any employing unit
   6-25  which becomes an employer for the first time during the calendar
   6-26  year 1972, other than one which first becomes an employer because
   6-27  of the provisions of subsection 19(f)(2) of this Act, shall be one
   6-28  percent (1%) rather than two and seven-tenths percent (2.7%) until
   6-29  such time as his account has been chargeable with benefits for four
   6-30  (4) consecutive calendar quarters and an experience rate is
   6-31  computed for him in accordance with this Act.
   6-32        SECTION 3.03.  Subdivision (8), Subsection (c), Section 7,
   6-33  Texas Unemployment Compensation Act (Article 5221b-5, Vernon's
   6-34  Texas Civil Statutes), is amended to read as follows:
   6-35              (8)  Except as provided by Subsection (g) of this
   6-36  section, in <In> addition to the general rate provided by
   6-37  Subdivision (6) of this subsection, each employer entitled to an
   6-38  experience rate shall pay a replenishment tax at a rate equal to a
   6-39  percentage, stated to the nearest hundredth, derived from the
   6-40  following numerator and denominator.  The numerator is an amount
   6-41  equal to one-half of the amount of benefits paid during the twelve
   6-42  (12) months ending the preceding September 30 that are not charged
   6-43  to an employer's account, that are charged to employers' accounts
   6-44  after the employers have reached maximum liability because of the
   6-45  maximum tax rate, or that are charged but considered not
   6-46  collectible.  The denominator is the total taxable wages for the
   6-47  four quarters ending the preceding June 30.
   6-48        SECTION 3.04.  Section 7, Texas Unemployment Compensation Act
   6-49  (Article 5221b-5, Vernon's Texas Civil Statutes), is amended by
   6-50  adding Subsections (e), (f), and (g) to read as follows:
   6-51        (e)  Rate of contributions:  Notwithstanding Subsection (b)
   6-52  of this section, on and after January 1, 1994, each employer shall
   6-53  pay contributions equal to two and six-tenths percent (2-6/10%) of
   6-54  wages paid by him with respect to employment, except as provided in
   6-55  Subsection (c) of this section.  This subsection expires
   6-56  December 31, 1999.
   6-57        (f)  Notwithstanding Subsection (c)(1) of this section, on
   6-58  and after January 1, 1994, each employer's contribution rate shall
   6-59  be two and six-tenths percent (2-6/10%) until his account has been
   6-60  chargeable with benefits throughout each calendar month of the four
   6-61  (4) consecutive calendar quarters immediately preceding the date as
   6-62  of which such employer's rate is determined.  The contribution rate
   6-63  of each employer who has had at least four (4) such calendar
   6-64  quarters of compensation experience shall be determined as provided
   6-65  by Subsection (c)(4) of this section.  This subsection expires
   6-66  December 31, 1999.
   6-67        (g)  Notwithstanding Subsection (c)(8) of this section, on
   6-68  and after January 1, 1994, in addition to the general rate provided
   6-69  by Subsection (c)(6) of this section, each employer entitled to an
   6-70  experience rate shall pay a replenishment tax at a rate equal to a
    7-1  percentage, stated to the nearest hundredth, computed by dividing
    7-2  the amount equal to one-half of the amount of benefits paid during
    7-3  the twelve (12) months ending the preceding September 30 that are
    7-4  not charged to an employer's account, that are charged to
    7-5  employers' accounts after the employers have reached maximum
    7-6  liability because of the maximum tax rate, or that are charged but
    7-7  considered not collectible by an amount equal to the total taxable
    7-8  wages for the four quarters ending the preceding June 30, and
    7-9  subtracting 0.1 from the quotient.  This subsection expires
   7-10  December 31, 1999.
   7-11        SECTION 3.05.  The Texas Unemployment Compensation Act
   7-12  (Article 5221b-1 et seq., Vernon's Texas Civil Statutes) is amended
   7-13  by adding Section 9e to read as follows:
   7-14        Sec. 9e.  EMPLOYMENT TRAINING INVESTMENT ASSESSMENT; HOLDING
   7-15  FUND; SMART JOBS FUND.  (a)  In addition to any taxes imposed by
   7-16  this Act, there is hereby levied on each employer paying
   7-17  contributions under this Act a separate and additional assessment
   7-18  of 0.1 percent of wages paid by the employer.  This assessment
   7-19  shall be known as the employment training investment assessment and
   7-20  shall be deposited by the commission into the holding fund created
   7-21  under Subsection (b) of this section.  The assessment shall be due
   7-22  at the same time, collected in the same manner, and subject to the
   7-23  same penalties and interest as a contribution assessed under
   7-24  Section 7 of this Act (Article 5221b-5, Vernon's Texas Civil
   7-25  Statutes).
   7-26        (b)  The holding fund is established as a special trust fund
   7-27  in the custody of the state treasurer separate and apart from all
   7-28  public money or funds of this state.  The state treasurer shall
   7-29  administer the fund in accordance with the directions of the
   7-30  commission.  Interest accruing on amounts in the holding fund shall
   7-31  be deposited on a quarterly basis into the Unemployment
   7-32  Compensation Fund.
   7-33        (c)  If, on September 1 of any calendar year, the commission
   7-34  determines that the amount in the Unemployment Compensation Fund
   7-35  will exceed 100 percent of its floor as computed under Section
   7-36  7(c)(6)(B) of this Act (Article 5221b-5, Vernon's Texas Civil
   7-37  Statutes) on the next October 1 computation date, the commission
   7-38  shall transfer the amount in the holding fund to the smart jobs
   7-39  fund created under Section 481.154, Government Code.
   7-40        (d)  If, on September 1 of any calendar year, the commission
   7-41  determines that the amount in the Unemployment Compensation Fund
   7-42  will be at or below 100 percent of its floor as computed under
   7-43  Section 7(c)(6)(B) of this Act (Article 5221b-5, Vernon's Texas
   7-44  Civil Statutes) on the next October 1 computation date, the
   7-45  commission shall transfer to the Unemployment Compensation Fund as
   7-46  much of the amount in the holding fund as is necessary to raise the
   7-47  amount in the Unemployment Compensation Fund to 100 percent of its
   7-48  floor, up to and including the entire amount in the holding fund.
   7-49  The commission shall transfer any  balance remaining in the holding
   7-50  fund to the smart jobs fund created under Section 481.154,
   7-51  Government Code.
   7-52        (e)  This section expires December 31, 1999.
   7-53                         ARTICLE IV.  REPEALER
   7-54        SECTION 4.01.  Section 481.076, Government Code, is repealed.
   7-55      ARTICLE V.  TRANSITION;  EFFECTIVE DATES; EMERGENCY CLAUSE
   7-56        SECTION 5.01.  (a)  Except as provided by Subsections (b) and
   7-57  (c) of this section, this Act takes effect September 1, 1993.
   7-58        (b)  Except as provided by Subsection (c) of this section,
   7-59  the assessment imposed under Section 9e, Texas Unemployment
   7-60  Compensation Act (Article 5221b-1 et seq., Vernon's Texas Civil
   7-61  Statutes), as added by Article III of this Act, applies only to
   7-62  wages paid on or after January 1, 1994.
   7-63        (c)  If, on October 1, 1993, the amount in the Unemployment
   7-64  Compensation Fund is less than the floor of that fund, as computed
   7-65  under Paragraph (B), Subdivision (6), Subsection (c), Section 7,
   7-66  Texas Unemployment Compensation Act (Article 5221b-5, Vernon's
   7-67  Texas Civil Statutes), Article III of this Act takes effect
   7-68  January 1, 1995.
   7-69        SECTION 5.02.  If, as of June 1, 1994, the Texas Employment
   7-70  Commission determines that the amount in the Unemployment
    8-1  Compensation Fund will exceed 100 percent of the floor of that
    8-2  fund, as computed under Paragraph (B), Subdivision (6), Subsection
    8-3  (c), Section 7, Texas Unemployment Compensation Act (Article
    8-4  5221b-5, Vernon's Texas Civil Statutes), on the next October 1
    8-5  computation date, the commission shall immediately transfer from
    8-6  the holding fund established under Subsection (b), Section 9e,
    8-7  Texas Unemployment Compensation Act (Article 5221b-1 et seq.,
    8-8  Vernon's Texas Civil Statutes), as added by this Act, into the
    8-9  smart jobs fund established under Section 481.154, Government Code,
   8-10  as added by this Act, an amount equal to 25 percent of the
   8-11  anticipated balance in the holding fund as of September 1, 1994.
   8-12        SECTION 5.03.  If the work force development functions and
   8-13  job training functions performed by the Texas Employment
   8-14  Commission, Texas Department of Commerce, and other state agencies
   8-15  are consolidated for performance by one state agency by the 73rd
   8-16  Legislature, it is the intent of the legislature that the
   8-17  administration of the smart jobs fund program created under this
   8-18  Act be transferred to that agency, along with any records or
   8-19  property relating to the operation of the smart jobs fund program.
   8-20        SECTION 5.04.  The importance of this legislation and the
   8-21  crowded condition of the calendars in both houses create an
   8-22  emergency and an imperative public necessity that the
   8-23  constitutional rule requiring bills to be read on three several
   8-24  days in each house be suspended, and this rule is hereby suspended.
   8-25                               * * * * *
   8-26                                                         Austin,
   8-27  Texas
   8-28                                                         February 2, 1993
   8-29  Hon. Bob Bullock
   8-30  President of the Senate
   8-31  Sir:
   8-32  We, your Committee on Economic Development to which was referred
   8-33  S.B. No. 130, have had the same under consideration, and I am
   8-34  instructed to report it back to the Senate with the recommendation
   8-35  that it do not pass, but that the Committee Substitute adopted in
   8-36  lieu thereof do pass and be printed.
   8-37                                                         Parker,
   8-38  Chairman
   8-39                               * * * * *
   8-40                               WITNESSES
   8-41                                                  FOR   AGAINST  ON
   8-42  ___________________________________________________________________
   8-43  Name:  Billy Hamilton                            x
   8-44  Representing:  Comptroller's Office
   8-45  City:  Austin
   8-46  -------------------------------------------------------------------
   8-47  Name:  William Grossenbacher                                   x
   8-48  Representing:  Texas Employment Commission
   8-49  City:  Austin
   8-50  -------------------------------------------------------------------
   8-51  Name:  Jim Hine                                                x
   8-52  Representing:  Tx Employment Commission
   8-53  City:  Austin
   8-54  -------------------------------------------------------------------
   8-55  Name:  Cathy Bonner                                            x
   8-56  Representing:  Texas Dept. of Commerce
   8-57  City:  Austin
   8-58  -------------------------------------------------------------------
   8-59  Name:  Joe Gunn                                  x
   8-60  Representing:  Workers
   8-61  City:  Austin
   8-62  -------------------------------------------------------------------
   8-63  Name:  Larry Milner                              x
   8-64  Representing:  Texas Chamber of Commerce
   8-65  City:  Austin
   8-66  -------------------------------------------------------------------
   8-67  Name:  Kenneth Ashworth                          x
   8-68  Representing:  Tx Higher Ed Coordin. Brd
   8-69  City:  Austin
   8-70  -------------------------------------------------------------------
    9-1  Name:  Dana Chiodo                               x
    9-2  Representing:  American Electronics Assoc.
    9-3  City:  Austin
    9-4  -------------------------------------------------------------------