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
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   5-43  Name:  Arturo R. Gil                                           x
   5-44  Representing:  Tx. Department of Commerce
   5-45  City:  Austin
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   5-47  Name:  Vicki Tynan                                             x
   5-48  Representing:  State Comptroller
   5-49  City:  Austin
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   5-51  Name:  Thomas Plaut                                            x
   5-52  Representing:  State Comptroller
   5-53  City:  Austin
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