S.B. No. 367
                                        AN ACT
    1-1  relating to the establishment of a workforce development initiative
    1-2  to improve the transition of the youth of this state from school to
    1-3  employment and the creation of certain pilot programs to implement
    1-4  that initiative.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 481, Government Code, is amended by
    1-7  adding Subchapter AA to read as follows:
    1-8      SUBCHAPTER AA.  WORKFORCE DEVELOPMENT INITIATIVE FOR YOUTH
    1-9        Sec. 481.371.  PURPOSE.  The goal of this subchapter is to
   1-10  improve the connection between school and work, to increase student
   1-11  incentives to learn, and to improve the transition from school to
   1-12  employment for high school students, especially students who do not
   1-13  enter a baccalaureate degree program at an institution of higher
   1-14  education directly after graduation from high school.  The scope of
   1-15  this subchapter is limited to skill development programs and
   1-16  projects that begin in high school or are tied explicitly to
   1-17  serving high school students through formal preapprenticeship
   1-18  arrangements.
   1-19        Sec. 481.372.  DEFINITIONS.  In this subchapter:
   1-20              (1)  "Apprenticeship program" means a training program
   1-21  combining work and study that:
   1-22                    (A)  meets recognized standards of
   1-23  apprenticeship; and
   1-24                    (B)  is registered with the Bureau of
    2-1  Apprenticeship and Training, United States Department of Labor.
    2-2              (2)  "Apprentice" means an individual who is formally
    2-3  enrolled in an apprenticeship program.
    2-4              (3)  "Career pathways program" means a school-industry
    2-5  partnership, including a:
    2-6                    (A)  preapprenticeship program;
    2-7                    (B)  career academy;
    2-8                    (C)  mentoring program;
    2-9                    (D)  internship and practicum program;
   2-10                    (E)  technical preparatory program;
   2-11                    (F)  cooperative education program; and
   2-12                    (G)  any other program that meets the
   2-13  qualifications set by the design committee.
   2-14              (4)  "Design committee" means the Committee on the
   2-15  Design of Apprenticeship and Career Pathways Programs for Youth.
   2-16              (5)  "Employee" means an individual who performs
   2-17  services for another under a contract of hire, whether express or
   2-18  implied or oral or written.
   2-19              (6)  "Employer" means a person that employs one or more
   2-20  employees.
   2-21              (7)  "Executive director" means the executive director
   2-22  of the department.
   2-23              (8)  "Initiative" means the workforce development
   2-24  initiative.
   2-25              (9)  "Minority group members" includes:
   2-26                    (A)  African-Americans;
   2-27                    (B)  American Indians;
    3-1                    (C)  Asian-Americans; and
    3-2                    (D)  Mexican-Americans and other Americans of
    3-3  Hispanic origin.
    3-4              (10)  "Pilot program" means the youth apprenticeship
    3-5  grant pilot program or the career pathways pilot program for youth.
    3-6              (11)  "Project" means a specific project developed and
    3-7  implemented under a pilot program created under this subchapter.
    3-8              (12)  "Small business" has the meaning assigned by
    3-9  Section 481.231.
   3-10              (13)  "Workforce development initiative" means an
   3-11  organized system for the effective transition of the youth of this
   3-12  state from school to employment.
   3-13        Sec. 481.373.  YOUTH APPRENTICESHIP GRANT PILOT PROGRAM.  The
   3-14  youth apprenticeship grant pilot program is created in the
   3-15  department to provide high-quality supervised learning
   3-16  opportunities for students at the workplace of a participating
   3-17  employer.  The program is based on employer involvement and
   3-18  commitment.
   3-19        Sec. 481.374.  CAREER PATHWAYS PILOT PROGRAM FOR YOUTH.  The
   3-20  career pathways pilot program for youth is created in the
   3-21  department to assist secondary school students in the transition
   3-22  from school to employment.  The program shall take a student who
   3-23  has successfully completed the 10th grade through a learning
   3-24  process that integrates school and work and high school with the
   3-25  first few years of postsecondary learning.
   3-26        Sec. 481.375.  GENERAL PROVISIONS RELATING TO PILOT PROGRAMS.
   3-27  (a)  The department shall administer the pilot programs created
    4-1  under this subchapter.
    4-2        (b)  Each pilot program shall:
    4-3              (1)  foster interactive, team-based learning in the
    4-4  classroom and at the workplace;
    4-5              (2)  include curricula on all aspects of the industry
    4-6  in which the student is training;
    4-7              (3)  use competency-based measures for evaluating
    4-8  student progress;
    4-9              (4)  place strong emphasis on occupational safety;
   4-10              (5)  provide both academic and occupational
   4-11  credentials;
   4-12              (6)  provide access and support to groups, including
   4-13  women, minority group members, and persons with disabilities, and
   4-14  explicitly address issues presented by diversity in society and the
   4-15  workplace; and
   4-16              (7)  involve industries and occupations that offer
   4-17  entry-level jobs with good opportunities for career advancement
   4-18  into high-skill, high-wage jobs.
   4-19        (c)  The pilot programs are funded through the general
   4-20  revenue of this state, local matching funds, and any other funds
   4-21  received by the department for use in the programs, from any
   4-22  source.
   4-23        (d)  State funds may not be used to provide wage subsidies to
   4-24  employers who hire individuals participating in the programs.
   4-25        (e)  An age limitation imposed under state or federal law
   4-26  regarding employment in hazardous occupations may not be violated
   4-27  by a person participating in the pilot program in any capacity.
    5-1        Sec. 481.376.  GRANTS; GRANT APPLICATIONS.  (a)  The
    5-2  executive director may award a grant for a project that meets the
    5-3  requirements established by the department for the applicable pilot
    5-4  program.  A grant may not be awarded for a project relating to an
    5-5  occupation in which there is low demand for workers or an
    5-6  oversupply of workers.
    5-7        (b)  A grant made under this section shall be monitored by
    5-8  the department.
    5-9        (c)  The department shall withdraw a grant for a project if
   5-10  the executive director determines that the project is not meeting
   5-11  the requirements of the pilot program.
   5-12        (d)  A grant application must be filed with the department in
   5-13  the form prescribed by the executive director.  The executive
   5-14  director shall act on a completed application not later than the
   5-15  30th day after the date on which the application is filed with the
   5-16  department.
   5-17        (e)  The department shall provide organizations that conduct
   5-18  training in an occupation for which a grant application is filed or
   5-19  in a substantially similar occupation an opportunity to review and
   5-20  comment on the project for which the grant is requested prior to
   5-21  final approval of the project and the awarding of a grant.
   5-22        (f)  There shall be no general revenue of the State of Texas
   5-23  used for this section.  Should federal or private funds, grants, or
   5-24  donations become available, then such funds shall be used for this
   5-25  section.
   5-26        Sec. 481.377.  RULES.  The policy board may adopt rules as
   5-27  necessary to implement this subchapter and programs adopted under
    6-1  this subchapter.
    6-2        Sec. 481.378.  ANNUAL REPORT.  (a)  The department shall
    6-3  report before January 31 of each year to the governor, the
    6-4  lieutenant governor, and the speaker of the house of
    6-5  representatives regarding the progress of the initiative.
    6-6        (b)  The report must list information showing the percentages
    6-7  and actual numbers of members of the following groups who have
    6-8  received training and education through the pilot programs during
    6-9  the preceding calendar year and the types of training, by
   6-10  occupation, that members of those groups received:
   6-11              (1)  minority group members, listed by ethnic
   6-12  classification;
   6-13              (2)  women; and
   6-14              (3)  persons with disabilities.
   6-15        Sec. 481.379.  DESIGN COMMITTEE.  (a)  The Committee on the
   6-16  Design of Apprenticeship and Career Pathways Programs for Youth is
   6-17  established to advise the department on the workforce development
   6-18  initiative.
   6-19        (b)  The design committee is composed of members appointed by
   6-20  the executive director as follows:
   6-21              (1)  three members who are employers, representing the
   6-22  business community, including representation of small businesses;
   6-23              (2)  three members who are employees, representing the
   6-24  labor community, including representation by persons with
   6-25  experience in the Apprenticeship and Training Advisory Committee
   6-26  created under Chapter 33, Education Code;
   6-27              (3)  three members who are high school teachers,
    7-1  representing secondary education, including representation by
    7-2  persons with experience in the federal technical preparatory
    7-3  education programs created under 20 U.S.C. Section 2394b;
    7-4              (4)  three members who are faculty members of
    7-5  institutions of higher education, representing higher education,
    7-6  including representation by persons with experience in the federal
    7-7  technical preparatory education programs created under 20 U.S.C.
    7-8  Section 2394b;
    7-9              (5)  three members who are training directors from
   7-10  registered United States Department of Labor Bureau of
   7-11  Apprenticeship and Training programs; and
   7-12              (6)  three members who are persons who are not eligible
   7-13  for appointment under Subdivisions (1) through (5), representing
   7-14  the general public.
   7-15        (c)  In addition to the appointed members under Subsection
   7-16  (b), the state director of the Bureau of Apprenticeship and
   7-17  Training, United States Department of Labor, may serve as an ex
   7-18  officio, nonvoting member of the design committee.
   7-19        (d)  An appointed member of the design committee serves
   7-20  without compensation, but is entitled to reimbursement for actual
   7-21  and necessary expenses incurred in performing duties as a member of
   7-22  the design committee, subject to any applicable limitation in the
   7-23  General Appropriations Act.
   7-24        (e)  The department shall provide necessary personnel to
   7-25  staff the design committee.  The design committee may also obtain
   7-26  additional assistance or staff from other state agencies as
   7-27  required to implement its duties under this subchapter.
    8-1        Sec. 481.380.  POWERS AND DUTIES OF DESIGN COMMITTEE.
    8-2  (a)  The design committee shall:
    8-3              (1)  conduct public outreach programs to build public
    8-4  awareness of the need to improve the transition from school to
    8-5  employment and to build apprenticeship opportunities and career
    8-6  pathways for the youth of this state;
    8-7              (2)  guide the knowledge-development process to achieve
    8-8  the initiative;
    8-9              (3)  develop a consensus among the various groups
   8-10  affected by the transition from school to employment regarding the
   8-11  initiative; and
   8-12              (4)  advise the department on all aspects of the
   8-13  development of the pilot programs, including grant project
   8-14  specifications, eligibility criteria for receipt of grants, and
   8-15  program performance standards.
   8-16        (b)  The design committee shall advise the governor, the
   8-17  legislature, and affected state agencies on the workforce
   8-18  development initiative and the implementation of long-term
   8-19  apprenticeship programs and career pathways programs to improve the
   8-20  transition from school to employment.  At a minimum, the issues
   8-21  addressed by the design committee must include:
   8-22              (1)  methods of achieving integration of:
   8-23                    (A)  secondary and postsecondary learning;
   8-24                    (B)  academic and vocational or applied learning;
   8-25  and
   8-26                    (C)  learning at work with learning at school;
   8-27              (2)  the intended goals for the programs created under
    9-1  this subchapter;
    9-2              (3)  development of capacities and structures,
    9-3  particularly in private industry, to administer and finance the
    9-4  career pathways program on a permanent basis;
    9-5              (4)  professional development for educators, on-the-job
    9-6  trainers, and mentors;
    9-7              (5)  adoption of high academic standards for youths
    9-8  participating in programs under this subchapter to enhance future
    9-9  academic and career options;
   9-10              (6)  methods of ensuring access and support to women,
   9-11  minority group members, and persons with disabilities;
   9-12              (7)  provisions for the assessment of any industry
   9-13  certification program adopted for youths who successfully complete
   9-14  a career pathways program;
   9-15              (8)  incentives for employers and schools to
   9-16  participate in the programs created under this subchapter;
   9-17              (9)  analyses of attendant safety and liability
   9-18  concerns; and
   9-19              (10)  provisions to ensure that the training provided
   9-20  to youths participating in programs created under this subchapter
   9-21  is of high quality.
   9-22        (c)  The design committee shall obtain information from
   9-23  national and international benchmark studies to ensure that the
   9-24  system adopted in this state produces workers whose skills are
   9-25  competitive in the national and international markets and shall
   9-26  obtain and provide information relating to similar workforce
   9-27  development initiatives in other states, including information
   10-1  relating to:
   10-2              (1)  industry-developed national skill standards; and
   10-3              (2)  federal or state restructuring of employment and
   10-4  training programs.
   10-5        (d)  The design committee shall report to the 73rd
   10-6  Legislature and to the department not later than October 1, 1994,
   10-7  relating to the operation of the pilot programs.  The report must
   10-8  include:
   10-9              (1)  a status report on the pilot programs;
  10-10              (2)  recommendations for the design and implementation
  10-11  of effective long-term programs for the transition from school to
  10-12  employment; and
  10-13              (3)  an analysis of the operation and success of
  10-14  similar programs created in other states and foreign countries.
  10-15        Sec. 481.381.  ADMINISTRATIVE COSTS.  (a)  Not more than 10
  10-16  percent of the funds available to the department under the
  10-17  initiative may be used by the department or the design committee
  10-18  for administration of this subchapter, including necessary
  10-19  staffing.
  10-20        (b)  The design committee may use an additional five percent
  10-21  of the funds available to the committee under the initiative for
  10-22  public outreach and education purposes.
  10-23        Sec. 481.382.  EXPIRATION.  This subchapter expires August
  10-24  31, 1995.
  10-25        SECTION 2.  The Committee on the Design of Apprenticeship and
  10-26  Career Pathways Programs for Youth is abolished on August 31, 1995.
  10-27  All state property and records in the custody of that committee on
   11-1  that date that relate to the operation of the workforce development
   11-2  initiative created under Subchapter AA, Chapter 481, Government
   11-3  Code, shall be transferred to the custody of the Texas Department
   11-4  of Commerce not later than October 1, 1995.
   11-5        SECTION 3.  The importance of this legislation and the
   11-6  crowded condition of the calendars in both houses create an
   11-7  emergency and an imperative public necessity that the
   11-8  constitutional rule requiring bills to be read on three several
   11-9  days in each house be suspended, and this rule is hereby suspended,
  11-10  and that this Act take effect and be in force from and after its
  11-11  passage, and it is so enacted.