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 -------------------------------------------------------------------