1-1 By: Ellis S.B. No. 367 1-2 (In the Senate - Filed February 16, 1993; February 17, 1993, 1-3 read first time and referred to Committee on Finance; 1-4 March 3, 1993, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 11, Nays 0; March 3, 1993, 1-6 sent to printer.) 1-7 COMMITTEE VOTE 1-8 Yea Nay PNV Absent 1-9 Montford x 1-10 Turner x 1-11 Armbrister x 1-12 Barrientos x 1-13 Bivins x 1-14 Ellis x 1-15 Haley x 1-16 Moncrief x 1-17 Parker x 1-18 Ratliff x 1-19 Sims x 1-20 Truan x 1-21 Zaffirini x 1-22 COMMITTEE SUBSTITUTE FOR S.B. No. 367 By: Ellis 1-23 A BILL TO BE ENTITLED 1-24 AN ACT 1-25 relating to the establishment of a workforce development initiative 1-26 to improve the transition of the youth of this state from school to 1-27 employment and the creation of certain pilot programs to implement 1-28 that initiative. 1-29 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-30 SECTION 1. Chapter 481, Government Code, is amended by 1-31 adding Subchapter AA to read as follows: 1-32 SUBCHAPTER AA. WORKFORCE DEVELOPMENT INITIATIVE FOR YOUTH 1-33 Sec. 481.371. PURPOSE. The goal of this subchapter is to 1-34 improve the connection between school and work, to increase student 1-35 incentives to learn, and to improve the transition from school to 1-36 employment for high school students, especially students who do not 1-37 enter a baccalaureate degree program at an institution of higher 1-38 education directly after graduation from high school. The scope of 1-39 this subchapter is limited to skill development programs and 1-40 projects that begin in high school or are tied explicitly to 1-41 serving high school students through formal preapprenticeship 1-42 arrangements. 1-43 Sec. 481.372. DEFINITIONS. In this subchapter: 1-44 (1) "Apprenticeship program" means a training program 1-45 combining work and study that: 1-46 (A) meets recognized standards of 1-47 apprenticeship; and 1-48 (B) is registered with the Bureau of 1-49 Apprenticeship and Training, United States Department of Labor. 1-50 (2) "Apprentice" means an individual who is formally 1-51 enrolled in an apprenticeship program. 1-52 (3) "Career pathways program" means a school-industry 1-53 partnership, including a: 1-54 (A) preapprenticeship program; 1-55 (B) career academy; 1-56 (C) mentoring program; 1-57 (D) internship and practicum program; 1-58 (E) technical preparatory program; 1-59 (F) cooperative education program; and 1-60 (G) any other program that meets the 1-61 qualifications set by the design committee. 1-62 (4) "Design committee" means the Committee on the 1-63 Design of Apprenticeship and Career Pathways Programs for Youth. 1-64 (5) "Employee" means an individual who performs 1-65 services for another under a contract of hire, whether express or 1-66 implied or oral or written. 1-67 (6) "Employer" means a person that employs one or more 1-68 employees. 2-1 (7) "Executive director" means the executive director 2-2 of the department. 2-3 (8) "Initiative" means the workforce development 2-4 initiative. 2-5 (9) "Minority group members" include: 2-6 (A) African-Americans; 2-7 (B) American Indians; 2-8 (C) Asian-Americans; and 2-9 (D) Mexican-Americans and other Americans of 2-10 Hispanic origin. 2-11 (10) "Pilot program" means the youth apprenticeship 2-12 grant pilot program or the career pathways pilot program for youth. 2-13 (11) "Project" means a specific project developed and 2-14 implemented under a pilot program created under this subchapter. 2-15 (12) "Small business" has the meaning assigned by 2-16 Section 481.231. 2-17 (13) "Workforce development initiative" means an 2-18 organized system for the effective transition of the youth of this 2-19 state from school to employment. 2-20 Sec. 481.373. YOUTH APPRENTICESHIP GRANT PILOT PROGRAM. The 2-21 youth apprenticeship grant pilot program is created in the 2-22 department to provide high-quality supervised learning 2-23 opportunities for students at the workplace of a participating 2-24 employer. The program is based on employer involvement and 2-25 commitment. 2-26 Sec. 481.374. CAREER PATHWAYS PILOT PROGRAM FOR YOUTH. The 2-27 career pathways pilot program for youth is created in the 2-28 department to assist secondary school students in the transition 2-29 from school to employment. The program shall take a student who 2-30 has successfully completed the 10th grade through a learning 2-31 process that integrates school and work and high school with the 2-32 first few years of postsecondary learning. 2-33 Sec. 481.375. GENERAL PROVISIONS RELATING TO PILOT PROGRAMS. 2-34 (a) The department shall administer the pilot programs created 2-35 under this subchapter. 2-36 (b) Each pilot program shall: 2-37 (1) foster interactive, team-based learning in the 2-38 classroom and at the workplace; 2-39 (2) include curricula on all aspects of the industry 2-40 in which the student is training; 2-41 (3) use competency-based measures for evaluating 2-42 student progress; 2-43 (4) place strong emphasis on occupational safety; 2-44 (5) provide both academic and occupational 2-45 credentials; 2-46 (6) provide access and support to groups, including 2-47 women, minority group members, and persons with disabilities, and 2-48 explicitly address issues presented by diversity in society and the 2-49 workplace; and 2-50 (7) involve industries and occupations that offer 2-51 entry-level jobs with good opportunities for career advancement 2-52 into high-skill, high-wage jobs. 2-53 (c) The pilot programs are funded through the general 2-54 revenue of this state, local matching funds, and any other funds 2-55 received by the department for use in the programs, from any 2-56 source. 2-57 (d) State funds may not be used to provide wage subsidies to 2-58 employers who hire individuals participating in the programs. 2-59 (e) An age limitation imposed under state or federal law 2-60 regarding employment in hazardous occupations may not be violated 2-61 by a person participating in the pilot program in any capacity. 2-62 Sec. 481.376. GRANTS; GRANT APPLICATIONS. (a) The 2-63 executive director may award a grant for a project that meets the 2-64 requirements established by the department for the applicable pilot 2-65 program. A grant may not be awarded for a project relating to an 2-66 occupation in which there is low demand for workers or an 2-67 oversupply of workers. 2-68 (b) A grant made under this section shall be monitored by 2-69 the department. 2-70 (c) The department shall withdraw a grant for a project if 3-1 the executive director determines that the project is not meeting 3-2 the requirements of the pilot program. 3-3 (d) A grant application must be filed with the department in 3-4 the form prescribed by the executive director. The executive 3-5 director shall act on a completed application not later than the 3-6 30th day after the date on which the application is filed with the 3-7 department. 3-8 (e) The department shall provide organizations that conduct 3-9 training in an occupation for which a grant application is filed or 3-10 in a substantially similar occupation an opportunity to review and 3-11 comment on the project for which the grant is requested prior to 3-12 final approval of the project and the awarding of a grant. 3-13 Sec. 481.377. RULES. The policy board may adopt rules as 3-14 necessary to implement this subchapter and programs adopted under 3-15 this subchapter. 3-16 Sec. 481.378. ANNUAL REPORT. (a) The department shall 3-17 report before January 31 of each year to the governor, the 3-18 lieutenant governor, and the speaker of the house of 3-19 representatives regarding the progress of the initiative. 3-20 (b) The report must list information showing the percentages 3-21 and actual numbers of members of the following groups who have 3-22 received training and education through the pilot programs during 3-23 the preceding calendar year and the types of training, by 3-24 occupation, that members of those groups received: 3-25 (1) minority group members, listed by ethnic 3-26 classification; 3-27 (2) women; and 3-28 (3) persons with disabilities. 3-29 Sec. 481.379. DESIGN COMMITTEE. (a) The Committee on the 3-30 Design of Apprenticeship and Career Pathways Programs for Youth is 3-31 established to advise the department on the workforce development 3-32 initiative. 3-33 (b) The design committee is composed of members appointed by 3-34 the executive director as follows: 3-35 (1) three members who are employers, representing the 3-36 business community, including representation of small businesses; 3-37 (2) three members who are employees, representing the 3-38 labor community, including representation by persons with 3-39 experience in the Apprenticeship and Training Advisory Committee 3-40 created under Chapter 33, Education Code; 3-41 (3) three members who are high school teachers, 3-42 representing secondary education, including representation by 3-43 persons with experience in the federal technical preparatory 3-44 education programs created under 20 U.S.C. Section 2394b; 3-45 (4) three members who are faculty members of 3-46 institutions of higher education, representing higher education, 3-47 including representation by persons with experience in the federal 3-48 technical preparatory education programs created under 20 U.S.C. 3-49 Section 2394b; 3-50 (5) three members who are training directors from 3-51 registered United States Department of Labor Bureau of 3-52 Apprenticeship and Training programs; and 3-53 (6) three members who are persons who are not eligible 3-54 for appointment under Subdivisions (1) through (5), representing 3-55 the general public. 3-56 (c) In addition to the appointed members under Subsection 3-57 (b), the state director of the Bureau of Apprenticeship and 3-58 Training, United States Department of Labor, may serve as an ex 3-59 officio, nonvoting member of the design committee. 3-60 (d) An appointed member of the design committee serves 3-61 without compensation, but is entitled to reimbursement for actual 3-62 and necessary expenses incurred in performing duties as a member of 3-63 the design committee, subject to any applicable limitation in the 3-64 General Appropriations Act. 3-65 (e) The department shall provide necessary personnel to 3-66 staff the design committee. The design committee may also obtain 3-67 additional assistance or staff from other state agencies as 3-68 required to implement its duties under this subchapter. 3-69 Sec. 481.380. POWERS AND DUTIES OF DESIGN COMMITTEE. 3-70 (a) The design committee shall: 4-1 (1) conduct public outreach programs to build public 4-2 awareness of the need to improve the transition from school to 4-3 employment and to build apprenticeship opportunities and career 4-4 pathways for the youth of this state; 4-5 (2) guide the knowledge-development process to achieve 4-6 the initiative; 4-7 (3) develop a consensus among the various groups 4-8 affected by the transition from school to employment regarding the 4-9 initiative; and 4-10 (4) advise the department on all aspects of the 4-11 development of the pilot programs, including grant project 4-12 specifications, eligibility criteria for receipt of grants, and 4-13 program performance standards. 4-14 (b) The design committee shall advise the governor, the 4-15 legislature, and affected state agencies on the workforce 4-16 development initiative and the implementation of long-term 4-17 apprenticeship programs and career pathways programs to improve the 4-18 transition from school to employment. At a minimum, the issues 4-19 addressed by the design committee must include: 4-20 (1) methods of achieving integration of: 4-21 (A) secondary and postsecondary learning; 4-22 (B) academic and vocational or applied learning; 4-23 and 4-24 (C) learning at work with learning at school; 4-25 (2) the intended goals for the programs created under 4-26 this subchapter; 4-27 (3) development of capacities and structures, 4-28 particularly in private industry, to administer and finance the 4-29 career pathways program on a permanent basis; 4-30 (4) professional development for educators, on-the-job 4-31 trainers, and mentors; 4-32 (5) adoption of high academic standards for youths 4-33 participating in programs under this subchapter to enhance future 4-34 academic and career options; 4-35 (6) methods of ensuring access and support to women, 4-36 minority group members, and persons with disabilities; 4-37 (7) provisions for the assessment of any industry 4-38 certification program adopted for youths who successfully complete 4-39 a career pathways program; 4-40 (8) incentives for employers and schools to 4-41 participate in the programs created under this subchapter; 4-42 (9) analyses of attendant safety and liability 4-43 concerns; and 4-44 (10) provisions to ensure that the training provided 4-45 to youths participating in programs created under this subchapter 4-46 is of high quality. 4-47 (c) The design committee shall obtain information from 4-48 national and international benchmark studies to ensure that the 4-49 system adopted in this state produces workers whose skills are 4-50 competitive in the national and international markets and shall 4-51 obtain and provide information relating to similar workforce 4-52 development initiatives in other states, including information 4-53 relating to: 4-54 (1) industry-developed national skill standards; and 4-55 (2) federal or state restructuring of employment and 4-56 training programs. 4-57 (d) The design committee shall report to the 73rd 4-58 Legislature and to the department not later than October 1, 1994, 4-59 relating to the operation of the pilot programs. The report must 4-60 include: 4-61 (1) a status report on the pilot programs; 4-62 (2) recommendations for the design and implementation 4-63 of effective long-term programs for the transition from school to 4-64 employment; and 4-65 (3) an analysis of the operation and success of 4-66 similar programs created in other states and foreign countries. 4-67 Sec. 481.381. ADMINISTRATIVE COSTS. (a) Not more than 10 4-68 percent of the funds available to the department under the 4-69 initiative may be used by the department or the design committee 4-70 for administration of this subchapter, including necessary 5-1 staffing. 5-2 (b) The design committee may use an additional five percent 5-3 of the funds available to the committee under the initiative for 5-4 public outreach and education purposes. 5-5 Sec. 481.382. EXPIRATION. This subchapter expires August 5-6 31, 1995. 5-7 SECTION 2. The Committee on the Design of Apprenticeship and 5-8 Career Pathways Programs for Youth is abolished on August 31, 1995. 5-9 All state property and records in the custody of that committee on 5-10 that date that relate to the operation of the workforce development 5-11 initiative created under Subchapter AA, Chapter 481, Government 5-12 Code, shall be transferred to the custody of the Texas Department 5-13 of Commerce not later than October 1, 1995. 5-14 SECTION 3. The importance of this legislation and the 5-15 crowded condition of the calendars in both houses create an 5-16 emergency and an imperative public necessity that the 5-17 constitutional rule requiring bills to be read on three several 5-18 days in each house be suspended, and this rule is hereby suspended, 5-19 and that this Act take effect and be in force from and after its 5-20 passage, and it is so enacted. 5-21 * * * * * 5-22 Austin, 5-23 Texas 5-24 March 3, 1993 5-25 Hon. Bob Bullock 5-26 President of the Senate 5-27 Sir: 5-28 We, your Committee on Finance to which was referred S.B. No. 367, 5-29 have had the same under consideration, and I am instructed to 5-30 report it back to the Senate with the recommendation that it do not 5-31 pass, but that the Committee Substitute adopted in lieu thereof do 5-32 pass and be printed. 5-33 Montford, 5-34 Chairman 5-35 * * * * * 5-36 WITNESSES 5-37 FOR AGAINST ON 5-38 ___________________________________________________________________ 5-39 Name: Robert Glover, Research Scientist x 5-40 Representing: LBJ School of Public Affairs 5-41 City: Austin 5-42 ------------------------------------------------------------------- 5-43 Name: Arturo R. Gil x 5-44 Representing: Tx. Department of Commerce 5-45 City: Austin 5-46 ------------------------------------------------------------------- 5-47 Name: Vicki Tynan x 5-48 Representing: State Comptroller 5-49 City: Austin 5-50 ------------------------------------------------------------------- 5-51 Name: Thomas Plaut x 5-52 Representing: State Comptroller 5-53 City: Austin 5-54 -------------------------------------------------------------------