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.