By:  Ellis, et al.                                     S.B. No. 642
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the consolidation of job training, employment, and
    1-2  unemployment insurance programs and the development of an
    1-3  integrated state and local delivery system serving all Texans;
    1-4  merging the Texas Employment Commission into the Texas Commission
    1-5  on Workforce Competitiveness created by this Act.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7                   ARTICLE 1.  LEGISLATIVE FINDINGS
    1-8        SECTION 1.01.  LEGISLATIVE FINDINGS.  The legislature finds
    1-9  that:
   1-10              (1)  the economic future of this state and the
   1-11  prosperity of its citizens depend on the ability of businesses in
   1-12  this state to compete effectively in the world economy;
   1-13              (2)  a well-educated and highly trained workforce
   1-14  provides businesses in this state with the competitive edge
   1-15  critical for their success;
   1-16              (3)  the state's current workforce development effort
   1-17  is a fragmented array of more than 21 separately funded and
   1-18  administered education, job training, and employment programs
   1-19  operated by seven separate state agencies;
   1-20              (4)  despite the best efforts of professionals and
   1-21  volunteers who struggle every day to make those programs work and
   1-22  serve the needs of their clients, this fragmented approach results
   1-23  in the lack of clear accountability for results, duplication of
   1-24  services, inappropriate training, and wasted resources;
    2-1              (5)  consolidating the various federal and state
    2-2  programs into a single state-local delivery system will improve the
    2-3  quality and effectiveness of services and provide businesses in
    2-4  this state with an element critical to their success, a high
    2-5  quality workforce; and
    2-6              (6)  empowering local business, labor, and community
    2-7  leaders to take a more active role in their communities' economic
    2-8  and workforce development will enhance the quality, efficiency, and
    2-9  responsiveness of these programs.
   2-10        SECTION 1.02.  SHORT TITLE.  Articles 2 through 7 of this Act
   2-11  may be cited as the Workforce and Economic Competitiveness Act.
   2-12        SECTION 1.03.  APPLICATION OF SUNSET ACT.  The Texas
   2-13  Commission on Workforce Competitiveness is subject to Chapter 325,
   2-14  Government Code (Texas Sunset Act).  Unless continued in existence
   2-15  as provided by that chapter, the commission is abolished September
   2-16  1, 2001.
   2-17        SECTION 1.04.  DEFINITIONS.  In this Act:
   2-18              (1)  "Commission" means the Texas Commission on
   2-19  Workforce Competitiveness.
   2-20              (2)  "Human resource investment council" means a human
   2-21  resource investment council under the Job Training Reform
   2-22  Amendments Act of 1992 (Pub. L. No. 102-367, Section 701 et seq.).
   2-23              (3)  "Program year" means July 1 to June 30.
   2-24              (4)  "Workforce development" includes workforce
   2-25  education programs and workforce training and services.
   2-26              (5)  "Workforce education" means articulated
   2-27  career-path programs and the constituent courses of those programs
    3-1  that lead to initial  or continuing licensure or certification or
    3-2  associate degree-level accreditation and that are subject to:
    3-3                    (A)  initial and ongoing state approval or
    3-4  regional or specialized accreditation;
    3-5                    (B)  a formal state evaluation that provides the
    3-6  basis for program continuation or termination;
    3-7                    (C)  state accountability and performance
    3-8  standards; and
    3-9                    (D)  regional or statewide employer-driven labor
   3-10  market demand documentation.
   3-11              (6)  "Workforce training and services" means training
   3-12  and services programs that are not included within the definition
   3-13  of workforce education.
   3-14       ARTICLE 2.  TEXAS COMMISSION ON WORKFORCE COMPETITIVENESS
   3-15        SECTION 2.01.  CREATION OF COMMISSION.  The Texas Commission
   3-16  on Workforce Competitiveness is created.
   3-17        SECTION 2.02.  PURPOSE OF COMMISSION.  The commission is
   3-18  created to consolidate the administration and delivery of federal
   3-19  and state programs for workforce training and services.  The
   3-20  commission is responsible for:
   3-21              (1)  meeting the needs of business in this state for a
   3-22  highly skilled and productive workforce;
   3-23              (2)  meeting the needs of the workers of this state for
   3-24  education, skills training, and labor market information to enhance
   3-25  the workers' employability and standard of living; and
   3-26              (3)  meeting the needs of the taxpayers of this state
   3-27  to ensure that tax dollars are spent effectively and efficiently.
    4-1        SECTION 2.03.  JURISDICTION OF COMMISSION.  (a)  The
    4-2  commission administers the following programs in this state:
    4-3              (1)  the Texas Job-Training Partnership Act (Article
    4-4  4413(52), Vernon's Texas Civil Statutes) and its subsequent
    4-5  amendments;
    4-6              (2)  postsecondary vocational and technical job
    4-7  training programs that are not part of approved courses or programs
    4-8  that lead to licensing, certification, or an associate degree under
    4-9  Chapters 61, 108, 130, and 135, and Subchapter E, Chapter 88,
   4-10  Education Code, and its subsequent amendments;
   4-11              (3)  adult education programs under Section 11.18,
   4-12  Education Code, and its subsequent amendments;
   4-13              (4)  apprenticeship programs under Chapter 33,
   4-14  Education Code, and its subsequent amendments;
   4-15              (5)  the trade adjustment assistance program under Part
   4-16  2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
   4-17  seq.), and its subsequent amendments;
   4-18              (6)  the senior citizens employment program under
   4-19  Chapter 101, Human Resources Code, and its subsequent amendments;
   4-20              (7)  the Texas Unemployment Compensation Act (Article
   4-21  5221b-1 et seq., Vernon's Texas Civil Statutes) and its subsequent
   4-22  amendments;
   4-23              (8)  the Texas child labor law (Article 5181.1,
   4-24  Vernon's Texas Civil Statutes) and its subsequent amendments;
   4-25              (9)  the Texas payday law (Article 5155, Revised
   4-26  Statutes) and its subsequent amendments;
   4-27              (10)  the public information program of the Texas
    5-1  Minimum Wage Act of 1970 (Article 5159d, Vernon's Texas Civil
    5-2  Statutes) and its subsequent amendments;
    5-3              (11)  literacy funds available to the state under the
    5-4  National Literacy Act of 1991 (Pub. L. 102-73 et seq.); and
    5-5              (12)  the National and Community Service Act of 1990
    5-6  (42 U.S.C. Section 12501 et seq.) and its subsequent amendments.
    5-7        (b)  To the extent allowable under federal law, the
    5-8  commission shall administer:
    5-9              (1)  the job opportunities and basic skills program
   5-10  under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section
   5-11  682), and its subsequent amendments; and
   5-12              (2)  the food stamp employment and training program
   5-13  authorized under 7 U.S.C. Section 2015(d) and its subsequent
   5-14  amendments.
   5-15        SECTION 2.04.  COMMISSION MEMBERSHIP.  (a)  The commission is
   5-16  composed of three members:
   5-17              (1)  one of whom shall be a representative of labor;
   5-18              (2)  one of whom shall be a representative of
   5-19  employers; and
   5-20              (3)  one of whom shall be impartial and shall represent
   5-21  the public.
   5-22        (b)  The governor shall appoint the members without regard to
   5-23  the race, creed, sex, disability, religion, or national origin of
   5-24  the appointees.
   5-25        SECTION 2.05.  MEMBER RESTRICTIONS.  (a)  A member of the
   5-26  commission may not engage in any other business, vocation, or
   5-27  employment during the member's term on the commission.
    6-1        (b)  The public member of the commission may not be an
    6-2  officer, employee, or paid consultant of a labor-oriented or
    6-3  employer-oriented trade association while the member serves on the
    6-4  commission.
    6-5        SECTION 2.06.  EFFECT OF LOBBYING ACTIVITY.  A person who is
    6-6  required to register as a lobbyist under Chapter 305, Government
    6-7  Code, may not serve as a member of the commission while registered.
    6-8  If the person ceases to engage in lobbying activity and files a
    6-9  notice of termination as prescribed by Section 305.008, Government
   6-10  Code, and its subsequent amendments, the person may serve as a
   6-11  member of the commission or act as the general counsel to the
   6-12  commission.
   6-13        SECTION 2.07.  TERMS; VACANCY.  (a)  Members of the
   6-14  commission are appointed for staggered six-year terms, with one
   6-15  member's term expiring on February 1 of each odd-numbered year.
   6-16        (b)  A member appointed to fill a vacancy shall hold office
   6-17  for the remainder of that term.
   6-18        SECTION 2.08.  PRESIDING OFFICER.  The member representing
   6-19  the public is the presiding officer of the commission.
   6-20        SECTION 2.09.  REMOVAL OF COMMISSION MEMBERS.  (a)  It is a
   6-21  ground for removal from the commission by impeachment that a
   6-22  member:
   6-23              (1)  during any 60-day period, is absent from each
   6-24  commission meeting for which the member received at least 48 hours'
   6-25  notice;
   6-26              (2)  is unable to discharge the member's duties for the
   6-27  remainder of the term for which the member was appointed because of
    7-1  illness or other disability;
    7-2              (3)  is absent:
    7-3                    (A)  from more than half of the regularly
    7-4  scheduled meetings of the commission that the member is eligible to
    7-5  attend during each calendar year;
    7-6                    (B)  from more than half of the regularly
    7-7  scheduled meetings of the Council on Workforce and Economic
    7-8  Competitiveness that the member is eligible to attend during each
    7-9  calendar year;
   7-10              (4)  violates a prohibition established by Section 2.05
   7-11  or 2.06 of this Act; or
   7-12              (5)  fails to perform any of the duties established by
   7-13  Section 2.10 of this Act.
   7-14        (b)  The validity of an action of the commission is not
   7-15  affected by the fact that it was taken when a ground for the
   7-16  removal of a member of the commission existed.
   7-17        SECTION 2.10.  GENERAL POWERS AND DUTIES.  (a)  The
   7-18  commission shall:
   7-19              (1)  administer all programs and corresponding federal
   7-20  and state legislation consolidated under the commission's authority
   7-21  by this Act;
   7-22              (2)  determine its own organization and methods of
   7-23  procedure in accordance with all applicable state and federal
   7-24  legislation;
   7-25              (3)  promote the adoption of high skill, high
   7-26  performance work organizations in this state;
   7-27              (4)  promote the development and adoption of a
    8-1  business-driven and industry-driven skills standards and
    8-2  certification system;
    8-3              (5)  implement workforce training and services policies
    8-4  and programs consistent with recommendations from the Council on
    8-5  Workforce and Economic Competitiveness;
    8-6              (6)  implement a statewide system for evaluating the
    8-7  effectiveness of all workforce development programs using the
    8-8  administrative records of the state's unemployment compensation
    8-9  program and other sources as appropriate;
   8-10              (7)  support research and demonstration projects
   8-11  designed to develop new programs and approaches to service
   8-12  delivery;
   8-13              (8)  ensure standardized technical and skill-specific
   8-14  curricula for all vocational and technical programs funded by state
   8-15  and federal funds under the commission's jurisdiction;
   8-16              (9)  serve as an advocate at the state and federal
   8-17  levels for the local workforce development boards;
   8-18              (10)  provide for a comprehensive labor market
   8-19  information system serving employers, students, workers, and state
   8-20  and local planning organizations;
   8-21              (11)  contract with local workforce development boards
   8-22  for program planning and service delivery;
   8-23              (12)  provide training and professional development
   8-24  services for commission staff, council members, and local workforce
   8-25  development boards and their staff;
   8-26              (13)  provide technical assistance and support to local
   8-27  workforce development boards;
    9-1              (14)  appoint an executive director; and
    9-2              (15)  perform other functions and duties as may be
    9-3  required by law or assigned by the governor.
    9-4        (b)  The commission may:
    9-5              (1)  adopt rules, make expenditures, enter into
    9-6  contracts with public, private, and nonprofit organizations,
    9-7  require reports, conduct investigations, and take other action the
    9-8  commission considers necessary or suitable to fulfill the
    9-9  commission's administrative duties; and
   9-10              (2)  delegate to the executive director any power or
   9-11  duty imposed on the commission by law, including the authority to
   9-12  make final orders or decisions, except that the commission may not
   9-13  delegate:
   9-14                    (A)  the power or duty to adopt rules; and
   9-15                    (B)  duties related to the approval and issuance
   9-16  of bonds.
   9-17        (c)  The commission's administrative expenses may not exceed
   9-18  12 percent of the commission's total budget.
   9-19        SECTION 2.11.  TRAINING FOR LOCAL WORKFORCE DEVELOPMENT BOARD
   9-20  MEMBERS.  (a)  The commission shall provide management and board
   9-21  development training for all members of local workforce development
   9-22  boards.  The training shall include information regarding the
   9-23  importance of high quality workforces to the economic prosperity of
   9-24  their communities and encourage board members to be advocates in
   9-25  their communities for effective and efficient workforce development
   9-26  programs.  A member of a workforce development board must receive
   9-27  the training under this section not later than the third month
   10-1  after beginning service on a certified board or the member shall be
   10-2  ineligible to continue serving on the board.
   10-3        (b)  Training may be provided directly by the commission or
   10-4  by a third party that has demonstrated experience in providing
   10-5  training to local workforce development or similar boards.  The
   10-6  quality of training shall be reviewed and appraised periodically by
   10-7  the Council on Workforce and Economic Competitiveness.
   10-8        (c)  Local workforce development boards shall provide 25
   10-9  percent of the costs for all members' management and board
  10-10  development training.
  10-11        SECTION 2.12.  INTEGRATION OF PROGRAMS.  (a)  The commission
  10-12  shall develop a plan for the eventual integration of the
  10-13  administrative functions of the programs under the jurisdiction and
  10-14  authority of the commission.
  10-15        (b)  The plan under Subsection (a) of this section shall
  10-16  specify dates by which integration of the various functions must be
  10-17  completed.  To the extent possible, the plan shall rely on existing
  10-18  state and available federal funds to ensure minimum disruption of
  10-19  services.
  10-20        (c)  The plan under Subsection (a) of this section shall be
  10-21  developed and submitted to the Council on Workforce and Economic
  10-22  Competitiveness not later than January 1, 1995.
  10-23        SECTION 2.13.  EXECUTIVE DIRECTOR.  The executive director of
  10-24  the commission shall:
  10-25              (1)  perform the duties assigned by the commission and
  10-26  state law;
  10-27              (2)  administer the day-to-day operations of the
   11-1  agency;
   11-2              (3)  appoint and prescribe the powers and duties of all
   11-3  officers, accountants, attorneys, experts, and other employees as
   11-4  necessary in the performance of the commission's duties;
   11-5              (4)  delegate authority to persons appointed under this
   11-6  section as the executive director considers reasonable and proper
   11-7  for the effective administration of the commission; and
   11-8              (5)  bond any person that handles money or signs checks
   11-9  for the commission.
  11-10        SECTION 2.14.  PERSONNEL POLICIES.  (a)  The executive
  11-11  director shall develop an intra-agency career ladder program.  The
  11-12  program shall require the intra-agency posting of all
  11-13  nonentry-level positions concurrently with any public posting.
  11-14        (b)  The executive director shall develop a system of annual
  11-15  performance evaluations based on measurable job tasks.  All merit
  11-16  pay for commission employees must be based on the system
  11-17  established under this subsection.
  11-18        SECTION 2.15.  TRAINING; STANDARDS OF CONDUCT INFORMATION.
  11-19  (a)  Each commission member shall comply with the member training
  11-20  requirements established by any other state agency that is given
  11-21  authority to establish the requirements for the commission.
  11-22        (b)  The executive director shall provide to the commission's
  11-23  employees as often as is necessary information regarding their
  11-24  qualifications under this article and their responsibilities under
  11-25  applicable laws relating to standards of conduct for state officers
  11-26  and employees.
  11-27        SECTION 2.16.  EQUAL EMPLOYMENT OPPORTUNITY POLICIES.
   12-1  (a)  The executive director shall  prepare and maintain a written
   12-2  policy statement to ensure implementation of a program of equal
   12-3  employment opportunity under which all personnel transactions are
   12-4  made without regard to race, color, disability, sex, religion, age,
   12-5  or national origin.  The policy statement must include:
   12-6              (1)  personnel policies, including policies relating to
   12-7  recruitment, evaluation, selection, appointment, training, and
   12-8  promotion of personnel that are in compliance with the Commission
   12-9  on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes)
  12-10  and its subsequent amendments;
  12-11              (2)  a comprehensive analysis of the commission's
  12-12  workforce that meets federal and state guidelines;
  12-13              (3)  procedures by which a determination can be made of
  12-14  significant underuse in the commission's workforce of all persons
  12-15  for whom federal or state guidelines encourage a more equitable
  12-16  balance; and
  12-17              (4)  reasonable methods to appropriately address those
  12-18  areas of underuse.
  12-19        (b)  A policy statement under Subsection (a) of this section
  12-20  must cover an annual period, be updated annually, be reviewed by
  12-21  the Commission on Human Rights for compliance with Subsection
  12-22  (a)(1) of this section, and be filed with the governor's office.
  12-23        (c)  The governor's office shall deliver a biennial report to
  12-24  the legislature based on the information received under Subsection
  12-25  (b) of this section.  The report may be made separately or as part
  12-26  of other biennial reports to the legislature.
  12-27        SECTION 2.17.  JOB PLACEMENT INFORMATION.  (a)  The
   13-1  commission in cooperation with the Texas Higher Education
   13-2  Coordinating Board shall establish and maintain an automated
   13-3  student and adult learner follow-up system in conjunction with a
   13-4  statewide job placement information system that uses the
   13-5  unemployment insurance wage record tracking system maintained by
   13-6  the commission.  The system shall be used to assist the commission,
   13-7  local workforce development boards, institution boards, the Texas
   13-8  Higher Education Coordinating Board, and other agencies in
   13-9  evaluating the labor market success and effectiveness of workforce
  13-10  development programs in this state.
  13-11        (b)  Evaluation data included in the system under this
  13-12  section shall include placement rates, wages paid, retention in
  13-13  employment statistics, and the number of placements made that are
  13-14  directly related to a job training program under this Act and other
  13-15  factors, including pursuit of additional education.
  13-16        (c)  The commission may develop a method for collecting job
  13-17  classification information to supplement data collected through the
  13-18  unemployment insurance data collection system.  The commission may
  13-19  request employers, providers, and other appropriate sources to
  13-20  provide employment and placement information to the commission.
  13-21        (d)  At least annually, the commission shall issue an
  13-22  occupation-specific analysis by provider of the job placement
  13-23  performance of each workforce education program for the previous
  13-24  one-year, three-year, and five-year periods to:
  13-25              (1)  each provider of a workforce education program or
  13-26  workforce training and services program;
  13-27              (2)  the Texas Higher Education Coordinating Board for
   14-1  each provider of a workforce education program approved and
   14-2  administered by the board; and
   14-3              (3)  each local workforce development board for each
   14-4  provider of workforce training and services within the workforce
   14-5  development area.
   14-6        (e)  The Texas Higher Education Coordinating Board shall use
   14-7  the job placement information received under this section and other
   14-8  information to:
   14-9              (1)  evaluate the effectiveness of workforce education
  14-10  programs;
  14-11              (2)  determine whether a public or private workforce
  14-12  education program is not effective in placing persons who
  14-13  successfully complete the program in jobs related to the persons'
  14-14  training; and
  14-15              (3)  determine whether to continue, expand, or
  14-16  terminate a program established under Section 61.051, Education
  14-17  Code, and its subsequent amendments.
  14-18        (f)  Each local workforce development board shall use the
  14-19  information under this section and other information to determine
  14-20  whether a specific workforce training and service program
  14-21  administered by the local board is effective and whether to
  14-22  continue or discontinue the training and service program.
  14-23     ARTICLE 3.  COUNCIL ON WORKFORCE AND ECONOMIC COMPETITIVENESS
  14-24        SECTION 3.01.  CREATION OF COUNCIL.  (a)  The Council on
  14-25  Workforce and Economic Competitiveness is created as a state agency
  14-26  to act as a human resources investment council.
  14-27        (b)  In this article, "council" means the Council on
   15-1  Workforce and Economic Competitiveness.
   15-2        SECTION 3.02.  MEMBERSHIP OF COUNCIL.  (a)  The council shall
   15-3  be appointed by the governor, who shall designate one of the
   15-4  business representatives on the council to serve as presiding
   15-5  officer.  The membership shall reflect the ethnic and geographic
   15-6  diversity of the state.
   15-7        (b)  The council shall be composed of:
   15-8              (1)  the following ex officio voting members:
   15-9                    (A)  the commissioner of education;
  15-10                    (B)  the commissioner of higher education;
  15-11                    (C)  the commissioner of health and human
  15-12  services;
  15-13                    (D)  the executive director of the Texas
  15-14  Department of Commerce; and
  15-15                    (E)  the executive director of the Texas
  15-16  Commission on Workforce Competitiveness;
  15-17              (2)  five voting members appointed by the governor who
  15-18  represent education, at least one of whom represents local public
  15-19  education, one of whom represents public postsecondary education,
  15-20  and one of whom represents secondary or postsecondary vocational
  15-21  education;
  15-22              (3)  seven voting members who represent organized labor
  15-23  appointed by the governor based on recommendations made by
  15-24  recognized labor organizations;
  15-25              (4)  seven voting members appointed by the governor who
  15-26  represent business and industry on local workforce development
  15-27  boards;
   16-1              (5)  one voting member appointed by the governor who
   16-2  represents a community-based organization;
   16-3              (6)  one voting member appointed by the governor who
   16-4  represents a joint sponsored apprenticeship program as defined by
   16-5  the United States Department of Labor's Bureau of Apprenticeship
   16-6  and Training appointed from a list of three nominees submitted to
   16-7  the governor by the Apprenticeship and Training Association of
   16-8  Texas;
   16-9              (7)  one voting member appointed by the governor who
  16-10  represents a community-based adult literacy organization;
  16-11              (8)  one voting member appointed by the governor who
  16-12  represents adult basic and continuing education programs;
  16-13              (9)  four voting members appointed by the governor each
  16-14  of whom represent not more than one of the following categories:
  16-15                    (A)  literacy groups;
  16-16                    (B)  local welfare or public housing agencies;
  16-17                    (C)  units of local government;
  16-18                    (D)  adult education organizations;
  16-19                    (E)  teachers or counselors;
  16-20                    (F)  local service delivery organizations;
  16-21                    (G)  special needs populations;
  16-22                    (H)  rural and agricultural organizations;
  16-23                    (I)  proprietary schools;
  16-24                    (J)  members of the state legislature; and
  16-25                    (K)  other groups and organizations; and
  16-26              (10)  the following ex officio nonvoting members:
  16-27                    (A)  the chair of the State Board of Education;
   17-1                    (B)  the chair of the Texas Higher Education
   17-2  Coordinating Board;
   17-3                    (C)  the presiding officer of the Texas Board of
   17-4  Human Services;
   17-5                    (D)  the presiding officer of the governing board
   17-6  of the Texas Department of Commerce;
   17-7                    (E)  the chair of the Texas Commission on
   17-8  Workforce Competitiveness;
   17-9                    (F)  the commissioner of the Texas Rehabilitation
  17-10  Commission; and
  17-11                    (G)  the executive director of the Texas
  17-12  Commission for the Blind.
  17-13        (c)  The presiding officer of the council shall designate a
  17-14  member of the council as assistant presiding officer to preside in
  17-15  the absence of the presiding officer.
  17-16        SECTION 3.03.  MEETINGS; TERMS.   (a)  The council shall meet
  17-17  at least quarterly and at other times at the call of the presiding
  17-18  officer or as provided by rules adopted by the council.
  17-19        (b)  A member of the council who does not serve as an ex
  17-20  officio member serves a six-year term, with one-third of those
  17-21  members' terms expiring in each odd-numbered year.  An ex officio
  17-22  member shall continue to serve as a member of the council as long
  17-23  as the member continues to serve in the designated office.
  17-24        SECTION 3.04.  DESIGNATED REPLACEMENTS.  A member of the
  17-25  council may designate another person to attend a meeting for the
  17-26  member.  The designated person may participate in the activities
  17-27  and discussions of the council but may not vote.
   18-1        SECTION 3.05.  GROUNDS FOR REMOVAL FROM COUNCIL.  (a)  It is
   18-2  a ground for removal from the council if a non-ex officio member:
   18-3              (1)  does not have at the time of appointment the
   18-4  qualifications required by Section 3.02 of this Act;
   18-5              (2)  does not maintain during service on the council
   18-6  the qualifications required by Section 3.02 of this Act;
   18-7              (3)  violates a prohibition established by Section 3.06
   18-8  of this Act;
   18-9              (4)  cannot discharge the member's duties for a
  18-10  substantial part of the term for which the member is appointed
  18-11  because of illness or disability; or
  18-12              (5)  is absent from more than half of the regularly
  18-13  scheduled council meetings that the member is eligible to attend
  18-14  during a calendar year unless the absence is excused by a majority
  18-15  vote of the council.
  18-16        (b)  The validity of an action of the council is not affected
  18-17  by the fact that it is taken when a ground for removal of a council
  18-18  member exists.
  18-19        (c)  If the executive director has knowledge that a potential
  18-20  ground for removal exists, the executive director shall notify the
  18-21  presiding officer of the council of the ground.  The presiding
  18-22  officer shall then notify the governor that a potential ground for
  18-23  removal exists.
  18-24        SECTION 3.06.  EFFECT OF LOBBYING ACTIVITY.  (a)  A person
  18-25  may not serve as a member of the council or act as the general
  18-26  counsel to the council if the person is required to register as a
  18-27  lobbyist under Chapter 305, Government Code, and its subsequent
   19-1  amendments.
   19-2        (b)  If the person required to register as a lobbyist under
   19-3  Subsection (a) of this section files a notice of termination as
   19-4  provided by Section 305.008, Government Code, and its subsequent
   19-5  amendments, the person may serve as a member of the council or act
   19-6  as general counsel to the council.
   19-7        SECTION 3.07.  COUNCIL FUNCTIONS.  (a)  The council shall:
   19-8              (1)  promote the development of a well-educated, highly
   19-9  skilled workforce in this state through literacy, adult basic
  19-10  education, community education, and state-of-the-art occupational
  19-11  skills education and training programs;
  19-12              (2)  serve as an advocate for the development of an
  19-13  integrated workforce development system to provide quality services
  19-14  addressing the needs of business and workers in this state;
  19-15              (3)  recommend to the governor an approach for
  19-16  fostering the development of a business-driven and industry-driven
  19-17  skills standards and certification system for occupations requiring
  19-18  less than a baccalaureate-level education and training;
  19-19              (4)  promote the development of high productivity
  19-20  workplaces in this state;
  19-21              (5)  recommend to the governor the components of a
  19-22  school and training-to-work transition process;
  19-23              (6)  develop and recommend to the governor a plan to
  19-24  ensure client accessibility to workforce programs that includes a
  19-25  uniform statewide client application system for determining an
  19-26  applicant's eligibility for a workforce program for which state or
  19-27  federal financial assistance is available;
   20-1              (7)  recommend to the governor the designation of
   20-2  workforce development areas for the local planning and delivery of
   20-3  workforce development programs;
   20-4              (8)  develop and recommend to the governor, in concert
   20-5  with the Texas Department of Commerce, a strategic plan for the
   20-6  state's economic and workforce development effort;
   20-7              (9)  design and implement a state-local planning
   20-8  process for developing goals, objectives, and performance standards
   20-9  for the state's workforce training and services programs;
  20-10              (10)  recommend to the governor the goals, objectives,
  20-11  and performance standards to guide and evaluate the workforce
  20-12  development programs of all agencies represented on the council;
  20-13              (11)  review local workforce development plans and make
  20-14  recommendations to the governor for approval;
  20-15              (12)  recommend to the governor new programs and
  20-16  delivery systems to improve the efficiency and effectiveness of the
  20-17  state's workforce development initiatives;
  20-18              (13)  review the state's education, workforce
  20-19  development, and human services programs and systems and make
  20-20  recommendations to the governor regarding opportunities for
  20-21  coordination that would improve the quality of services with
  20-22  immediate attention to standardizing intake, eligibility,
  20-23  assessment, case management, and referral for participants in
  20-24  workforce development programs;
  20-25              (14)  monitor and evaluate the operation and results of
  20-26  the state's workforce development programs to assess the degree to
  20-27  which the programs are effective in achieving state and local
   21-1  goals; and
   21-2              (15)  carry out the federal and state mandated duties
   21-3  and responsibilities for all advisory councils under applicable
   21-4  federal and state workforce development programs that are
   21-5  consolidated under the commission.
   21-6        (b)  The council shall assume the duty to:
   21-7              (1)  develop, with the assistance of the appropriate
   21-8  state agencies, and recommend to the governor state plans required
   21-9  by applicable federal laws in order for the state to receive
  21-10  federal funds;
  21-11              (2)  make policy recommendations to the governor
  21-12  regarding goals and priorities for both formula and discretionary
  21-13  funds for all applicable programs;
  21-14              (3)  participate directly in the development of the
  21-15  master plan for vocational education, as required by law, and
  21-16  recommend the plan to the State Board of Education, the Texas
  21-17  Higher Education Coordinating Board, and the governor;
  21-18              (4)  ensure that general revenue funds previously
  21-19  available to the Texas Literacy Council are used to support the
  21-20  efforts of local literacy councils in a manner consistent with the
  21-21  state strategic plan;
  21-22              (5)  recommend to the State Board of Vocational
  21-23  Education the division of federal funds between secondary and
  21-24  postsecondary educational agencies under the Carl D. Perkins
  21-25  Vocational and Applied Technology Education Act (20 U.S.C. Section
  21-26  2301 et seq.) and its subsequent amendments; and
  21-27              (6)  make recommendations as appropriate to the
   22-1  commission and its members regarding unemployment insurance issues
   22-2  pertinent to the work of the council.
   22-3        (c)  In addition to the council's powers and duties under
   22-4  Subsections (a) and (b) of this section, the council may:
   22-5              (1)  adopt rules necessary and essential to the
   22-6  internal functions and duties of the council but not rules related
   22-7  to the operation of a workforce development program;
   22-8              (2)  make expenditures, enter into contracts with
   22-9  public, private, and non-profit organizations or agencies, require
  22-10  reports to be made, conduct investigations, and take other actions
  22-11  necessary or suitable to fulfill the council's duties under this
  22-12  Act;
  22-13              (3)  delegate to the executive director any power or
  22-14  duty imposed on the council by law, including the authority to make
  22-15  a final order or decision but not including the authority to adopt
  22-16  rules;
  22-17              (4)  provide for the mediation or arbitration of
  22-18  disputes between agencies that perform functions for federal
  22-19  programs as provided by this Act;
  22-20              (5)  accept gifts, grants, and donations of money,
  22-21  goods, or services to be used only to accomplish the council's
  22-22  duties under this Act; and
  22-23              (6)  share employees with another state agency.
  22-24        SECTION 3.08.  SUBCOMMITTEES; TECHNICAL ADVISORY COMMITTEES.
  22-25  (a)  The presiding officer of the council may appoint subcommittees
  22-26  consisting of members of the council for any purpose consistent
  22-27  with the duties and responsibilities of the council under this Act.
   23-1        (b)  The presiding officer of the council may appoint
   23-2  technical advisory committees composed of council members or
   23-3  persons who are not council members, or both members and
   23-4  non-members.
   23-5        SECTION 3.09.  TRANSFER OF STATE ADVISORY COUNCIL
   23-6  RESPONSIBILITIES.  (a)  The council shall assume the
   23-7  responsibilities assigned to the state advisory council under the
   23-8  following federal laws:
   23-9              (1)  the Job Training Partnership Act (29 U.S.C.
  23-10  Section 1501 et seq.) and its subsequent amendments;
  23-11              (2)  the Carl D. Perkins Vocational and Applied
  23-12  Technology Education Act (20 U.S.C. Section 2301 et seq.) and its
  23-13  subsequent amendments;
  23-14              (3)  the National and Community Service Act of 1990 (42
  23-15  U.S.C. Section 12501 et seq.) and its subsequent amendments;
  23-16              (4)  the Adult Education Act (20 U.S.C. Section 1201 et
  23-17  seq.) and its subsequent amendments;
  23-18              (5)  the Wagner-Peyser Act (29 U.S.C. Section 49 et
  23-19  seq.) and its subsequent amendments;
  23-20              (6)  Part F, Subchapter IV, Social Security Act (42
  23-21  U.S.C. Section 681 et seq.), and its subsequent amendments;
  23-22              (7)  the employment program established under Section
  23-23  6(d)(4), Food Stamp Act of 1977 (7 U.S.C. Section 2015(d)(4)), and
  23-24  its subsequent amendments; and
  23-25              (8)  the National Literacy Act of 1991 (Pub. L. 102-73
  23-26  et seq.) and its subsequent amendments.
  23-27        (b)  The council shall assume the responsibilities formerly
   24-1  exercised by the following state advisory councils:
   24-2              (1)  the State Job Training Coordinating Council;
   24-3              (2)  the Texas Council on Vocational Education;
   24-4              (3)  the technical advisory committee to the State
   24-5  Occupational Information Coordinating Council;
   24-6              (4)  the Texas Literacy Council; and
   24-7              (5)  the Apprenticeship and Training Advisory
   24-8  Committee.
   24-9        SECTION 3.10.  FISCAL AGENT.  The council may designate
  24-10  another state agency to serve as the council's fiscal agent if the
  24-11  designated agent agrees to the designation.
  24-12        SECTION 3.11.  EXECUTIVE DIRECTOR; COUNCIL STAFF.  (a)  The
  24-13  presiding officer of the council shall appoint an executive
  24-14  director for the council.
  24-15        (b)  The executive director shall:
  24-16              (1)  report to the presiding officer of the council;
  24-17              (2)  perform duties assigned by the council and under
  24-18  state law;
  24-19              (3)  administer the day-to-day operations of the
  24-20  council;
  24-21              (4)  appoint officers, accountants, attorneys, experts,
  24-22  and other employees for the council and assign duties for these
  24-23  employees as necessary in the performance of the council's powers
  24-24  and duties under this Act;
  24-25              (5)  delegate authority to persons appointed under this
  24-26  section as the executive director considers to be reasonable and
  24-27  proper for the effective administration of the council; and
   25-1              (6)  perform other duties assigned by this Act.
   25-2        (c)  The executive director may adopt the administrative and
   25-3  personnel procedures of the council's fiscal agent rather than
   25-4  adopting new procedures for the council.
   25-5        (d)  The council shall have an independent staff with
   25-6  sufficient expertise to perform all duties and responsibilities
   25-7  assigned to the council under this Act and under state and federal
   25-8  law.  The staff of the council may be supplemented by staff from
   25-9  other state agencies who are temporarily assigned to assist with
  25-10  special projects.
  25-11        (e)  The executive director of the State Occupational
  25-12  Information Coordinating Council shall report to the executive
  25-13  director of the council and shall provide labor market information,
  25-14  information relevant to workforce program evaluation, and staff
  25-15  technical assistance to the council and its staff as necessary.
  25-16  The executive director of the State Occupational Information
  25-17  Coordinating Council may enter into contracts for products and
  25-18  services with State Occupational Information Coordinating Council
  25-19  membership agencies and other organizations if consistent with the
  25-20  state strategic plan.
  25-21        SECTION 3.12.  PERSONNEL POLICIES.  (a)  The executive
  25-22  director of the council shall develop an intra-agency career ladder
  25-23  program.  The program shall require the intra-agency posting of all
  25-24  nonentry-level positions concurrently with any public posting.
  25-25        (b)  The executive director shall develop a system of annual
  25-26  performance evaluations based on measurable job tasks.  All merit
  25-27  pay for council employees must be based on the system established
   26-1  under this subsection.
   26-2        SECTION 3.13.  TRAINING; STANDARDS OF CONDUCT INFORMATION.
   26-3  (a)  Each council member shall comply with the member training
   26-4  requirements established by any other state agency that is given
   26-5  authority to establish the requirements for the council.
   26-6        (b)  The executive director shall provide to the council's
   26-7  members and employees, as often as necessary, information regarding
   26-8  their qualifications for office or employment under this Act and
   26-9  their responsibilities under applicable laws relating to standards
  26-10  of conduct for state officers and employees.
  26-11        SECTION 3.14.  EQUAL EMPLOYMENT OPPORTUNITY POLICIES.
  26-12  (a)  The executive director shall prepare and maintain a written
  26-13  policy statement to assure implementation of a program of equal
  26-14  employment opportunity under which all personnel transactions are
  26-15  made without regard to race, color, disability, sex, religion, age,
  26-16  or national origin.  The policy statement must include:
  26-17              (1)  personnel policies, including policies relating to
  26-18  recruitment, evaluation, selection, application, training, and
  26-19  promotion of personnel that are in compliance with the Commission
  26-20  on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes)
  26-21  and its subsequent amendments;
  26-22              (2)  a comprehensive analysis of the council's
  26-23  workforce that meets federal and state guidelines;
  26-24              (3)  procedures by which a determination can be made of
  26-25  significant underuse in the council's workforce of all persons for
  26-26  whom federal or state guidelines encourage a more equitable
  26-27  balance; and
   27-1              (4)  reasonable methods to appropriately address those
   27-2  areas of underuse.
   27-3        (b)  A policy statement under Subsection (a) of this section
   27-4  must cover an annual period, be updated annually, be reviewed by
   27-5  the Commission on Human Rights for compliance with Subsection
   27-6  (a)(1) of this section, and be filed with the governor's office.
   27-7        (c)  The governor's office shall deliver a biennial report to
   27-8  the legislature based on the information received under Subsection
   27-9  (b) of this section.  The report may be made separately or as part
  27-10  of other biennial reports to the legislature.
  27-11        SECTION 3.15.  COUNCIL RECOMMENDATIONS; COOPERATION WITH
  27-12  STATE AGENCIES.  (a)  The council shall develop recommendations
  27-13  periodically in each of the council's areas of responsibility and
  27-14  shall submit the recommendations to the governor.
  27-15        (b)  The governor shall consider the recommendations
  27-16  submitted under this section.  The governor shall approve,
  27-17  disapprove, or modify the recommendations and return the
  27-18  recommendations to the council to be forwarded as appropriate or
  27-19  forward an approved or modified recommendation without returning
  27-20  the recommendation to the council.  An approved or modified
  27-21  recommendation shall be forwarded to the appropriate agency for
  27-22  implementation.  A recommendation that is approved or modified that
  27-23  requires a change in state or federal law shall be forwarded to the
  27-24  appropriate legislative body for consideration.
  27-25        (c)  A recommendation that is not approved, disapproved, or
  27-26  modified by the governor before the 90th day after the date the
  27-27  recommendation is submitted shall be considered to be approved by
   28-1  the governor.
   28-2        (d)  State agencies that are responsible for the
   28-3  administration of human resources and workforce development
   28-4  programs in this state shall implement the recommendations to the
   28-5  extent possible.
   28-6        (e)  A state agency shall:
   28-7              (1)  provide requested information to the council in a
   28-8  timely manner;
   28-9              (2)  report on the implementation of the council's
  28-10  recommendations at the time and in the format requested by the
  28-11  council; and
  28-12              (3)  notify the governor, the executive director, and
  28-13  the presiding officer of the council if the agency determines that
  28-14  a recommendation cannot be implemented.
  28-15        (f)  A recommendation approved by the governor with regard to
  28-16  the state or federal Job Training Partnership Act (29 U.S.C.
  28-17  Section 1501 et seq.) shall be implemented by the agency
  28-18  responsible for the administration of that Act as required by
  28-19  federal law.
  28-20        SECTION 3.16.  STRATEGIC PLAN.  (a)  In addition to the other
  28-21  requirements of this Act, the strategic plan recommended by the
  28-22  council shall recognize and address literacy and basic education as
  28-23  activities that are critical to the well-being of individuals and
  28-24  the state without regard to whether the training and education is
  28-25  directed at preparing an individual for employment.
  28-26        (b)  The strategic plan shall include goals, objectives, and
  28-27  performance measures for all economic and workforce development
   29-1  programs that are represented on the council.
   29-2        (c)  On approval of the plan by the governor, an agency
   29-3  represented on the council shall use the strategic plan to develop
   29-4  the agency's operational plan.
   29-5        SECTION 3.17.  FUNDING.  (a)  Federal funding for the
   29-6  operation of the council shall be allocated according to federal
   29-7  requirements.
   29-8        (b)  A state agency represented on the council shall provide
   29-9  funds for the support of the council in proportion to the agency's
  29-10  financial participation in the workforce development system.  The
  29-11  legislature shall appropriate funds to the council on the basis of
  29-12  this subsection.
  29-13        ARTICLE 4.  DESIGNATION OF WORKFORCE DEVELOPMENT AREAS
  29-14        SECTION 4.01.  DESIGNATION OF WORKFORCE DEVELOPMENT AREAS.
  29-15  (a)  The governor shall, after receiving the recommendations of the
  29-16  Council on Workforce and Economic Competitiveness, publish a
  29-17  proposed designation of local workforce development areas for the
  29-18  planning and delivery of workforce development services, each of
  29-19  which:
  29-20              (1)  is composed of more than one contiguous unit of
  29-21  general local government, that includes at least one county;
  29-22              (2)  is consistent with either a local labor market
  29-23  area, a metropolitan statistical area, one of the 24 substate
  29-24  planning areas, or one of the 10 uniform state service regions; and
  29-25              (3)  is of sufficient size to have the administrative
  29-26  resources necessary to provide for the effective planning,
  29-27  management, and delivery of workforce development services.
   30-1        (b)  Units of general local government, business and labor
   30-2  organizations, and other affected persons and organizations shall
   30-3  have an opportunity to comment on the proposed designation of a
   30-4  workforce development area and to request revisions of the
   30-5  designation.
   30-6        (c)  The governor, after considering all comments and
   30-7  requests for changes, shall make the final designation of workforce
   30-8  development areas.  The governor may redesignate workforce
   30-9  development areas not more than once every two years.  A
  30-10  redesignation must be made not later than four months before the
  30-11  beginning of a program year.
  30-12            ARTICLE 5.  LOCAL WORKFORCE DEVELOPMENT BOARDS
  30-13        SECTION 5.01.  CREATION OF LOCAL WORKFORCE DEVELOPMENT
  30-14  BOARDS.  (a)  The chief elected officials in a workforce
  30-15  development area designated by the governor under Section 4.01 of
  30-16  this Act may form, in accordance with rules established by the
  30-17  commission, a local workforce development board to plan and oversee
  30-18  the delivery of all workforce training and services programs and
  30-19  evaluate all workforce development programs in the workforce
  30-20  development  area.
  30-21        (b)  On agreement regarding the formation of a local
  30-22  workforce development board, the chief elected officials shall
  30-23  reduce the agreement to writing.  The local government agreement
  30-24  shall include:
  30-25              (1)  the purpose for the agreement;
  30-26              (2)  the process that will be used to select the chief
  30-27  elected official who will act on behalf of the other chief elected
   31-1  officials;
   31-2              (3)  the initial size of the local workforce
   31-3  development board;
   31-4              (4)  the process to be used to appoint the board
   31-5  members, which must be consistent with applicable federal and state
   31-6  laws; and
   31-7              (5)  the terms of office of the members of the board.
   31-8        (c)  The chief elected officials shall consider the views of
   31-9  all affected local organizations, including private industry
  31-10  councils and quality workforce planning committees, before making a
  31-11  final decision regarding the formation of a local workforce
  31-12  development board.
  31-13        (d)  None of the powers and duties granted a workforce
  31-14  development board under this Act may be exercised in a workforce
  31-15  development area until the chief elected officials in that area
  31-16  reach an agreement providing for the establishment of a local
  31-17  workforce development board and the board is certified by the
  31-18  governor.
  31-19        (e)  A private industry council in an area in which a local
  31-20  workforce development board is not created or in which the chief
  31-21  elective officers are unable to negotiate the establishment of a
  31-22  local workforce development board may not exercise any of the
  31-23  powers granted a local workforce development board by this Act.
  31-24        SECTION 5.02.  LOCAL BOARD MEMBERSHIP.  (a)  A local
  31-25  workforce development board is appointed by the chief elected
  31-26  officials consistent with the local government agreement and
  31-27  applicable federal and state laws.  Board members serve fixed and
   32-1  staggered terms as provided by the agreement or applicable federal
   32-2  or state laws and may continue to serve until successors are
   32-3  appointed.  Board membership shall reflect the ethnic and
   32-4  geographic diversity of the workforce development area.  A board is
   32-5  composed as follows:
   32-6              (1)  representatives of the private sector, who shall
   32-7  constitute a majority of the membership of the board and who are
   32-8  owners of business concerns, chief executives or chief operating
   32-9  officers of nongovernmental employers, or other private sector
  32-10  executives who have substantial management or policy
  32-11  responsibilities;
  32-12              (2)  representatives of organized labor and
  32-13  community-based organizations, who shall constitute not less than
  32-14  15 percent of the membership of the board; and
  32-15              (3)  representatives of each of the following:
  32-16                    (A)  educational agencies, including secondary
  32-17  and postsecondary practitioners representing vocational education,
  32-18  that are representative of all educational agencies in the service
  32-19  delivery area;
  32-20                    (B)  vocational rehabilitation agencies;
  32-21                    (C)  public assistance agencies;
  32-22                    (D)  economic development agencies;
  32-23                    (E)  the public employment service;
  32-24                    (F)  local literacy councils; and
  32-25                    (G)  adult basic and continuing education
  32-26  organizations.
  32-27        (b)  The chairman of the board shall be selected from among
   33-1  the members of the board who represent the private sector.
   33-2        (c)  Private sector representatives on the board shall be
   33-3  selected from among individuals nominated by general-purpose
   33-4  business organizations after consulting with and receiving
   33-5  recommendations from other business organizations in the workforce
   33-6  development area.  The number of the  nominations shall be at least
   33-7  150 percent of the number of individuals to be appointed under
   33-8  Subsection (a)(1) of this section.  The nominations and the
   33-9  individuals selected from the nominations must reasonably represent
  33-10  the industrial and demographic composition of the business
  33-11  community.  If  possible, at least one-half of the business and
  33-12  industry representatives shall be representatives of small
  33-13  business, including minority business.
  33-14        (d)  In this section:
  33-15              (1)  "general purpose business organization" means an
  33-16  organization that admits to membership any for-profit business
  33-17  operating within the workforce development area; and
  33-18              (2)  "small business" means a private for-profit
  33-19  enterprise employing not more than 500 employees.
  33-20        (e)  The education representatives on the board shall be
  33-21  selected from among individuals nominated by regional or local
  33-22  educational agencies, vocational education institutions,
  33-23  institutions of higher education, including entities offering adult
  33-24  education, and general organizations of the institutions  within
  33-25  the workforce development area.
  33-26        (f)  The labor representatives on the board shall be selected
  33-27  from individuals recommended by recognized state and local labor
   34-1  federations.  If  a state or local labor federation fails to
   34-2  nominate a sufficient number of individuals to meet the labor
   34-3  representation requirements of Subsection (a)(2) of this section,
   34-4  individual workers may be included on the council to complete the
   34-5  labor representation.
   34-6        (g)  The remaining members of the board shall be selected
   34-7  from individuals recommended by interested organizations.
   34-8        (h)  The board may create committees as needed to carry out
   34-9  its duties and responsibilities.  The board may create technical
  34-10  advisory groups composed of both council and noncouncil members to
  34-11  provide assistance as needed.
  34-12        (i)  Members of the board shall avoid the appearance of
  34-13  conflict of interest by recusing themselves on votes of the board
  34-14  directly affecting the funding of their organization or any
  34-15  organization that they represent.
  34-16        SECTION 5.03.  CERTIFICATION OF BOARD.  The governor shall
  34-17  certify a local workforce development board if the governor
  34-18  determines that the board's composition and appointments are
  34-19  consistent with applicable federal and state laws and requirements.
  34-20  Certification shall be made or denied not later than the 30th day
  34-21  after the date a certification request is submitted to the
  34-22  governor.  None of the powers and duties granted a board under this
  34-23  Act shall be exercised in  a workforce development area until the
  34-24  board is certified by the governor.
  34-25        SECTION 5.04.  FUNCTIONS OF BOARD.  (a)  A board is directly
  34-26  responsible and accountable to the commission for the planning and
  34-27  delivery of workforce training and services in the workforce
   35-1  development area. A workforce development board shall insure
   35-2  effective outcomes as evidenced by performance measures and other
   35-3  quality control and evaluation measures implemented by the board.
   35-4  The commission shall assist workforce development boards in
   35-5  designing effective measures to accomplish this responsibility.
   35-6        (b)  A board shall:
   35-7              (1)  serve as a single point of contact for local
   35-8  business to communicate their skill needs and influence the
   35-9  direction of workforce education and training programs in the
  35-10  workforce development area;
  35-11              (2)  develop a local plan for addressing the workforce
  35-12  development needs of the workforce development area that:
  35-13                    (A)  is responsive to the goals, objectives, and
  35-14  performance standards established by the governor;
  35-15                    (B)  targets services to meet local needs,
  35-16  including the identification of industries and employers likely to
  35-17  employ workers who complete job training programs; and
  35-18                    (C)  ensures that the workforce development
  35-19  system, including the educational system, has the flexibility to
  35-20  meet the needs of local businesses;
  35-21              (3)  designate the board or some other entity as the
  35-22  board's fiscal agent to be responsible and accountable for the
  35-23  management of all workforce development funds available to the
  35-24  board;
  35-25              (4)  create local workforce development centers as
  35-26  established in Article 6 of this Act;
  35-27              (5)  review plans for workforce education to ensure
   36-1  that the plans address the needs of local businesses;
   36-2              (6)  assume the functions and responsibilities of local
   36-3  workforce development advisory boards and councils authorized by
   36-4  federal or state laws, including private industry councils, quality
   36-5  workforce planning committees, job service employer committees, and
   36-6  local vocational program advisory committees as appropriate;
   36-7              (7)  monitor and evaluate the effectiveness of the
   36-8  workforce development centers, other contractors providing
   36-9  workforce development services for the board, and vocational and
  36-10  technical education programs operated by local education agencies
  36-11  and institutions of higher education;
  36-12              (8)  have the authority to increase or decrease the
  36-13  size of the board's membership consistent with applicable federal
  36-14  laws;
  36-15              (9)  promote cooperation and coordination among public
  36-16  organizations, community organizations, and private business
  36-17  providing workforce development services; and
  36-18              (10)  review applications as consistent with rules
  36-19  developed by the Texas Department of Commerce for funds under the
  36-20  smart jobs fund program under Subchapter J, Chapter 481, Government
  36-21  Code.  The board may provide relevant labor market information and
  36-22  information regarding the availability of existing workforce
  36-23  development programs to the department.
  36-24        SECTION 5.05.  EMPLOYER-DRIVEN NEEDS ASSESSMENT.  (a)  A
  36-25  board shall establish and operate an automated, interactive
  36-26  employer-driven labor market information system to identify
  36-27  occupation-specific labor demand in each workforce development
   37-1  area.
   37-2        (b)  A board shall periodically provide a report summarizing
   37-3  occupation-specific labor demand to each public postsecondary
   37-4  institution providing vocational and technical education in a
   37-5  workforce development area.
   37-6        (c)  If a need is identified in the availability of workforce
   37-7  education as indicated by the labor market information system
   37-8  provided by the board, by a direct request of employers located in
   37-9  the workforce area, or as the result of an economic development
  37-10  incentive package designed to attract or retain an employer, the
  37-11  institution shall apply within 30 days to the Texas Higher
  37-12  Education Coordinating Board for approval to offer the needed
  37-13  workforce education.  The coordinating board shall give immediate
  37-14  priority to the institution's application and shall notify the
  37-15  institution of the board's approval or disapproval not later than
  37-16  the 100th day after the date the application is received.
  37-17        (d)  If more than one institution in a workforce development
  37-18  area applies under Subsection (c) of this section to provide the
  37-19  needed workforce education, the Texas Higher Education Coordinating
  37-20  Board shall select one or more institutions to offer the needed
  37-21  education as provided by Section 61.051, Education Code, and its
  37-22  subsequent amendments.
  37-23        (e)  A local workforce development board may solicit other
  37-24  qualified providers to apply to the coordinating board to provide
  37-25  needed education to be funded through state-appropriated formula
  37-26  funds if an institution approved by the Texas Higher Education
  37-27  Coordinating Board does not offer the approved workforce education
   38-1  in a timely manner.
   38-2        (f)  A public community college shall promptly provide
   38-3  workforce training and services that are requested:
   38-4              (1)  by the workforce development board based on the
   38-5  board's labor demand information system for the area;
   38-6              (2)  by employers located in the college's taxing
   38-7  district when the request is presented directly to the college by
   38-8  the employers or through the workforce development board; or
   38-9              (3)  as part of an economic development incentive
  38-10  package designed to attract or retain an employer, including a
  38-11  package offered under the smart jobs fund program under Subchapter
  38-12  J, Chapter 481, Government Code, and its subsequent amendments.
  38-13        (g)  An institution of higher education that has local taxing
  38-14  authority and is governed by a locally elected board of trustees is
  38-15  the primary provider of local workforce training and services that
  38-16  are needed by an employer within the taxing district and funded
  38-17  fully or in part by local funds, except in Cameron, McLennan, and
  38-18  Potter counties, or by technical vocational funds administered by
  38-19  the commission.  A local workforce development board shall select
  38-20  another qualified local or statewide provider if the local
  38-21  institution does not promptly provide locally needed workforce
  38-22  training and services.
  38-23        (h)  This section does not prohibit an institution of higher
  38-24  education from offering workforce education or workforce training
  38-25  and services that:
  38-26              (1)  are needed by an employer located in the college's
  38-27  taxing district and that meet all applicable standards; or
   39-1              (2)  have been approved under applicable law and that
   39-2  are reviewed by the Texas Higher Education Coordinating Board.
   39-3        (i)  This Act may not be interpreted to restrict a person's
   39-4  authority to contract for the provision of workforce education or
   39-5  workforce training and services that are provided without state or
   39-6  federal funds.
   39-7        SECTION 5.06.  LIST OF PUBLICLY FUNDED PROGRAMS AND CLASSES.
   39-8  (a)  A local education agency and public or private postsecondary
   39-9  educational institution shall provide the local workforce
  39-10  development board a list of all vocational-technical programs and
  39-11  classes the agency or institution offers that are funded by state
  39-12  or federal funds.
  39-13        (b)  A local workforce development board, with the assistance
  39-14  of the demand occupation list developed by the board, shall
  39-15  evaluate the supply of vocational-technical programs in relation to
  39-16  the demand for the programs and report any discrepancies between
  39-17  supply and demand to the appropriate educational institution, the
  39-18  Central Education Agency, the Texas Higher Education Coordinating
  39-19  Board, the Council on Workforce and Economic Competitiveness, and
  39-20  the Legislative Budget Board.
  39-21        SECTION 5.07.  BUDGET AND STAFFING.  (a)  A board shall
  39-22  establish a budget for the board that must be included in the local
  39-23  workforce development plan submitted to the Council on Workforce
  39-24  and Economic Competitiveness.  A board may employ professional,
  39-25  technical, and support staff as necessary to carry out its
  39-26  strategic planning, oversight, and evaluation functions.  A board's
  39-27  staff shall be separate from and independent of any organization
   40-1  providing education or workforce development services in the
   40-2  workforce development area.
   40-3        (b)  The requirement for separate staffing does not preclude
   40-4  a local workforce development board from designating a qualified
   40-5  organization to provide staff services to the board provided that
   40-6  the board arranges for independent evaluation of any other
   40-7  workforce services provided by the staffing organization and
   40-8  requests and obtains a waiver of the separate staffing requirement
   40-9  from the Council on Workforce and Economic Competitiveness.  The
  40-10  request for the waiver must contain a detailed justification based
  40-11  on such factors as cost effectiveness, prior experience, geographic
  40-12  and/or budgetary considerations, and availability of qualified
  40-13  applicants.
  40-14        SECTION 5.08.  APPROVAL OF FISCAL AGENT.  The commission must
  40-15  approve the fiscal agent selected by a local workforce development
  40-16  board before the disbursement of any federal or state workforce
  40-17  development funds to the board.  The commission's approval shall be
  40-18  based on an audit of the financial capability of the fiscal agent
  40-19  to assure that fiscal controls and fund accounting procedures
  40-20  necessary to guarantee the proper disbursal of and accounting for
  40-21  federal and state funds are in place.
  40-22        SECTION 5.09.  CONTRACTING FOR SERVICE DELIVERY.  (a)  A
  40-23  local workforce development board may not be a direct provider of
  40-24  client services.  A board may request a waiver of this requirement
  40-25  from the Council on Workforce and Economic Competitiveness.  The
  40-26  request for a waiver must include a detailed justification based on
  40-27  the lack of an existing qualified alternative for delivery of
   41-1  client services in the workforce development area.
   41-2        (b)  If a board receives a waiver to provide direct client
   41-3  services, the evaluation of results and outcomes is provided by the
   41-4  commission.
   41-5        SECTION 5.10.  INCENTIVES AND WAIVERS.  (a)  A local
   41-6  workforce development board certified by the governor is eligible
   41-7  for incentives and program waivers to promote and support
   41-8  integrated planning and delivery of workforce development services.
   41-9        (b)  Incentives, to the extent feasible under existing
  41-10  federal and state workforce development laws, include:
  41-11              (1)  priority for discretionary funding, including
  41-12  financial incentives for the consolidation of service delivery
  41-13  areas authorized under the federal Job Training Partnership Act (29
  41-14  U.S.C. Section 1501 et seq.); and
  41-15              (2)  block grants of formula allocated funding.
  41-16        (c)  The governor, in concert with the Council on Workforce
  41-17  and Economic Competitiveness and the local workforce development
  41-18  boards, shall:
  41-19              (1)  identify specific barriers to integrated service
  41-20  delivery at the local level;
  41-21              (2)  request waivers from existing federal and state
  41-22  regulations; and
  41-23              (3)  advocate changes in federal and state laws to
  41-24  promote local service integration.
  41-25        SECTION 5.11.  SANCTIONS FOR NONPERFORMANCE.  (a)  The
  41-26  commission shall provide technical assistance to local workforce
  41-27  development areas that fail to meet performance standards
   42-1  established under this Act and other applicable federal and state
   42-2  laws.  If a local workforce development area fails to meet
   42-3  performance standards for two consecutive program years, the
   42-4  commission shall develop and impose a reorganization plan that may
   42-5  include restructuring the local workforce development board,
   42-6  prohibiting the use of designated service providers, and merging
   42-7  the local workforce development area with another area.
   42-8        (b)  A local workforce development area that is the subject
   42-9  of a reorganization plan may appeal to the governor to rescind or
  42-10  revise the plan not later than the 30th day after the date of
  42-11  receiving notice of the plan.
  42-12        SECTION 5.12.  SANCTIONS FOR LACK OF FISCAL ACCOUNTABILITY.
  42-13  If, as a result of financial and compliance audits or for another
  42-14  reason, the commission determines that there is a substantial
  42-15  violation of a specific provision of this Act or another federal or
  42-16  state law or regulation and corrective action has not been taken,
  42-17  the commission shall:
  42-18              (1)  issue a notice of intent to revoke all or part of
  42-19  the affected local plan;
  42-20              (2)  issue a notice of intent to immediately cease
  42-21  reimbursement of local program costs; or
  42-22              (3)  impose a reorganization plan under Section 5.11 of
  42-23  this Act for the local workforce development area.
  42-24        SECTION 5.13.  NONPROFIT STATUS; ABILITY TO SOLICIT FUNDS.
  42-25  (a)  A local workforce development board may apply for and receive
  42-26  a charter as a private, nonprofit corporation under the laws of
  42-27  this state and may choose to be recognized as a Section 501(c)(3)
   43-1  organization under the Internal Revenue Code of 1986 (26 U.S.C.
   43-2  Section 501(c)(3)).
   43-3        (b)  In addition to receiving funds specified in this Act, a
   43-4  local workforce development board may solicit additional funds from
   43-5  other sources, both public and private.  A board may not solicit or
   43-6  accept money from an entity with whom the board contracts for the
   43-7  delivery of services.
   43-8        SECTION 5.14.  PLANS FOR WORKFORCE EDUCATION.  In addition to
   43-9  the other requirements of this Act, in evaluating a plan for
  43-10  workforce education to ensure that the plan addresses the needs of
  43-11  local businesses, a board, on behalf of local businesses, may
  43-12  recommend changes in the delivery of programs the board provides.
  43-13  A provider must respond to a change recommended by a board not
  43-14  later than the 30th day after the date the provider receives the
  43-15  recommendation.
  43-16                   ARTICLE 6.  LOCAL DELIVERY SYSTEM
  43-17        SECTION 6.01.  WORKFORCE DEVELOPMENT CENTERS.  A local
  43-18  workforce development board shall establish workforce development
  43-19  centers accessible to workers and employers throughout the
  43-20  workforce development area.  Each center shall provide access to
  43-21  information and services available in the workforce development
  43-22  area and shall address the individual needs of workers and
  43-23  employers.  The services available at a center shall be tailored to
  43-24  meet individual needs and shall include the following:
  43-25              (1)  labor market information, including the skills of
  43-26  the area workforce, available job openings, and the education,
  43-27  training, and employment opportunities in the local area, in the
   44-1  state, and as feasible, in the nation;
   44-2              (2)  common intake and eligibility determination for
   44-3  all workforce development programs and services;
   44-4              (3)  independent assessment of individual needs and the
   44-5  development of an individual service strategy;
   44-6              (4)  centralized and continuous case management and
   44-7  counseling;
   44-8              (5)  individual referral for services including basic
   44-9  education, classroom skills training, on-the-job training, and
  44-10  customized training; and
  44-11              (6)  supportive services, including child care, loans,
  44-12  and other forms of financial assistance required to participate in
  44-13  and complete training.
  44-14        SECTION 6.02.  RIGHT TO KNOW.  A local workforce development
  44-15  center shall provide each individual who participates in a
  44-16  vocational or technical training program a written document that
  44-17  informs the person of current employment prospects and the current
  44-18  wage level for a person who completes the vocational or technical
  44-19  training program.
  44-20             ARTICLE 7.  MANUFACTURING TECHNOLOGY NETWORK
  44-21        SECTION 7.01.  PURPOSE.  In light of the transition occurring
  44-22  in defense-related industries and other manufacturing sectors in
  44-23  this state, small and medium-sized enterprises in this state need a
  44-24  manufacturing technology system that combines the resources of the
  44-25  public and private sectors.  The system is necessary to:
  44-26              (1)  expand and diversify the state economy and provide
  44-27  new and higher quality jobs for the citizens of this state;
   45-1              (2)  effectively deploy the appropriate technology for
   45-2  competitive manufacturing in the global economy through workforce
   45-3  development, applied research, and new product development;
   45-4              (3)  build the awareness of and the capacity for
   45-5  education and training that meets the needs of enterprises and
   45-6  workers;
   45-7              (4)  stimulate financial capital for basic and applied
   45-8  research to move innovation to commercial application; and
   45-9              (5)  encourage the building of partnerships between
  45-10  industry, education, and the public sector to enhance and improve
  45-11  the overall use of the state's human and capital resources.
  45-12        SECTION 7.02.  DEFINITIONS.  In this article:
  45-13              (1)  "Applied research" means research activity at an
  45-14  institution of higher education, a nonprofit research foundation,
  45-15  or in the private sector that focuses available knowledge for
  45-16  application to resolve identified problems the results of which may
  45-17  be used in industry to improve processes and applications of
  45-18  technology.
  45-19              (2)  "Basic research" means an original investigation
  45-20  performed to advance scientific knowledge that does not have a
  45-21  specific commercial objective but has a potential long-range value
  45-22  to commercial interests.
  45-23              (3)  "Enterprise" means a firm that has its principal
  45-24  place of business or a manufacturing facility in this state.
  45-25              (4)  "Institution of higher education" has the meaning
  45-26  assigned by Section 61.003, Education Code, and its subsequent
  45-27  amendments.
   46-1              (5)  "Manufacturing technology network" means a
   46-2  coordinated network of public and private manufacturing
   46-3  modernization resources designed to stimulate the competitiveness
   46-4  of small and medium-sized manufacturing firms in this state,
   46-5  including manufacturing technology centers, shared-use facilities,
   46-6  extension services, and specific training programs.
   46-7              (6)  "New technology" means methods, products,
   46-8  processes, and procedures developed through science or research.
   46-9              (7)  "Nonprofit research institution" means a not for
  46-10  profit public or private facility in this state that has the
  46-11  capacity to conduct applied and basic research projects and that is
  46-12  not a subsidiary of a corporation, partnership, or association that
  46-13  operates for a profit and does not have its stock or assets owned
  46-14  or controlled by a corporation, partnership, or association that
  46-15  operates for a profit.
  46-16              (8)  "Person" means an individual, partnership,
  46-17  corporation, or joint venture that conducts business or proposes to
  46-18  conduct business in this state.
  46-19              (9)  "Product" means an outcome, device, technique, or
  46-20  process that has advanced beyond the theoretical stage, is in a
  46-21  prototype or practice stage, and that is currently being or may in
  46-22  the future be developed or marketed commercially.
  46-23              (10)  "Technology deployment" means the process of
  46-24  assisting a manufacturing enterprise to appraise, purchase,
  46-25  install, integrate, and effectively use equipment, techniques, and
  46-26  processes, including the training of workers in the manufacturing
  46-27  enterprise, that improve the quality and productivity of goods and
   47-1  services.
   47-2              (11)  "Technology manufacturing and business incubator"
   47-3  means a facility that houses and assists in the start-up of
   47-4  business for technology-related businesses.
   47-5              (12)  "Technology transfer" means a two-way process by
   47-6  which ideas or inventions for new technology developed in a
   47-7  research program on a laboratory or pilot-plant scale are converted
   47-8  to commercial use.
   47-9        SECTION 7.03.  MANUFACTURING TECHNOLOGY NETWORK.  (a)  The
  47-10  strategic plan for economic and workforce development shall include
  47-11  recommendations to the governor for the goals, objectives,
  47-12  performance standards, and design of a manufacturing technology
  47-13  network to improve the technological capabilities of small and
  47-14  medium-sized manufacturing enterprises in this state.
  47-15        (b)  The plan shall:
  47-16              (1)  review current research and studies related to the
  47-17  condition of manufacturing and defense-related enterprises and
  47-18  associated technology deployment in this state;
  47-19              (2)  involve representatives of private sector
  47-20  manufacturing enterprises to determine the composition and level of
  47-21  services to be provided by the network and its components;
  47-22              (3)  include linkages between the state's four-year
  47-23  institutions of higher education, community colleges, the Texas
  47-24  State Technical College System, and proprietary schools to assist
  47-25  in the improvement of technical curriculum and counseling,
  47-26  including assistance to enable defense-industry workers and
  47-27  military personnel who have management, professional, and technical
   48-1  skills acquired in the defense industry or military, to acquire
   48-2  skills necessary to obtain and thrive in new jobs;
   48-3              (4)  assure the development of quality education and
   48-4  training curricula through the use of identified standards
   48-5  developed against national and international standards;
   48-6              (5)  consider the availability of existing resources
   48-7  for technology and business assistance, outreach capabilities, and
   48-8  technology transfer in institutions of higher education, nonprofit
   48-9  research institutions, local technology business incubators, and
  48-10  other sources capable of forming a base for network services;
  48-11              (6)  make recommendations to the governor on applying
  48-12  for federal funds to operate one or more manufacturing technology
  48-13  centers and associated technology deployment; and
  48-14              (7)  establish a system to reduce existing barriers and
  48-15  effectively use university and federal laboratories for technology
  48-16  transfer activities.
  48-17        (c)  The network shall contain the following elements:
  48-18              (1)  the ability to meet the specific needs and
  48-19  capabilities of enterprises seeking assistance;
  48-20              (2)  the capacity to respond to federal initiatives and
  48-21  investment in technology deployment and defense conversion;
  48-22              (3)  the provision of assistance to small and
  48-23  medium-sized manufacturing enterprises in this state in the:
  48-24                    (A)  application of technology and the
  48-25  integration of new technology with conventional systems;
  48-26                    (B)  education and training of employees of small
  48-27  and medium-sized enterprises, including training courses in
   49-1  advanced manufacturing techniques and processes;
   49-2                    (C)  provision of plant-based assessment of
   49-3  problems with guidance for solutions; and
   49-4                    (D)  provision of inter-firm collaboration,
   49-5  including opportunities for enterprises in different fields to
   49-6  exchange information, share experiences, and solve problems in
   49-7  order to facilitate technology transfer;
   49-8              (4)  the establishment of a system to evaluate the
   49-9  effectiveness and efficiency of services provided by the network to
  49-10  small and medium-sized manufacturing enterprises;
  49-11              (5)  the ability to establish and operate, directly or
  49-12  under a contract or interagency agreement, an electronic
  49-13  information system designed to provide access to resources that
  49-14  will assist enterprises in becoming more productive and
  49-15  competitive;
  49-16              (6)  the ability to develop and distribute information
  49-17  about manufacturing modernization and assistance that is available
  49-18  to assist small and medium-sized enterprises to produce and market
  49-19  higher-value added products;
  49-20              (7)  the establishment of special information and
  49-21  educational training programs for persons who work with small and
  49-22  medium-sized manufacturing enterprises;
  49-23              (8)  the improvement of existing networks or efforts to
  49-24  match dislocated workers with special technical skills, including
  49-25  workers in the defense industry and the military, with companies in
  49-26  this state that need those workers and their skills, by assisting
  49-27  potential employers in understanding and interpreting skills
   50-1  acquired in defense-industry and military training programs and
   50-2  other means; and
   50-3              (9)  the ability to assist workers who wish to start
   50-4  new businesses with skills requiring special certification or
   50-5  licensing through providing alternative or equivalent programs and
   50-6  special entrepreneurship training.
   50-7                   ARTICLE 8.  CONFORMING AMENDMENTS
   50-8        SECTION 8.01.  CONFORMING AMENDMENT.  Subsections (f) and
   50-9  (j), Section 61.051, Education Code, are amended to read as
  50-10  follows:
  50-11        (f)  The board shall encourage and develop new certificate
  50-12  programs in technical and vocational education in Texas public
  50-13  technical institutes and public community colleges as the needs of
  50-14  technology and industry may demand and shall recommend the
  50-15  elimination of such programs for which a need no longer exists.
  50-16  The board shall conduct a review of the certificate programs at
  50-17  least every four years or on the request of the Council on
  50-18  Workforce and Economic Competitiveness and shall terminate a
  50-19  program that does not meet performance review standards and other
  50-20  criteria established by the board.  The board shall assume the
  50-21  leadership role and administrative responsibilities for state level
  50-22  administration of postsecondary technical-vocational education
  50-23  programs in Texas public community colleges, public technical
  50-24  institutes, and other eligible public postsecondary institutions.
  50-25  The board shall ensure that standardized minimum technical and
  50-26  skill-specific competency and performance standards for each
  50-27  workforce education program, as developed by the Council on
   51-1  Workforce and Economic Competitiveness, are used in the board's
   51-2  review, approval, or disapproval of a vocational and technical
   51-3  program financed by state and federal funds.
   51-4        (j)  No off-campus courses for credit may be offered by any
   51-5  public technical institute, public community college, or public
   51-6  college or university without specific prior approval of the board.
   51-7  The board may not prohibit a public junior college district from
   51-8  offering a course for credit outside the boundaries of the junior
   51-9  college district when such course has met the requirements for
  51-10  approval as adopted by the board.  The board shall establish
  51-11  regulations for the coordination of credit <and noncredit>
  51-12  activities of adult and continuing education by public technical
  51-13  institutes, public community colleges, or public colleges and
  51-14  universities.
  51-15        SECTION 8.02.  CONFORMING AMENDMENT.  Section 61.077,
  51-16  Education Code, is amended to read as follows:
  51-17        Sec. 61.077.  JOINT ADVISORY COMMITTEE.  (a)  There is hereby
  51-18  created a joint advisory committee for the purpose of advising the
  51-19  Texas Higher Education Coordinating Board<, Texas College and
  51-20  University System,> and the State Board of Education in
  51-21  coordinating postsecondary vocational-technical activities, <and>
  51-22  vocational-technical teacher education programs offered or proposed
  51-23  to be offered in the colleges and universities of this state, and
  51-24  other relevant matters, including those listed in Section 61.076 of
  51-25  this code.  The committee shall be composed of three members from
  51-26  the State Board of Education, appointed by the chairman of the
  51-27  board and three members from the Texas Higher Education
   52-1  Coordinating Board, <Texas College and University System,>
   52-2  appointed by the chairman of the board, <and> one member designated
   52-3  by the presiding officer of the Council on Workforce and Economic
   52-4  Competitiveness, and one member representing business designated by
   52-5  the chair of the Texas Partnership for Economic Development <of the
   52-6  Texas Council on Vocational Education, appointed by the chairman of
   52-7  the council>.  A member of the <coordinating> board shall be
   52-8  designated as chairman of the joint advisory committee by the
   52-9  chairman of the <coordinating> board.  The committee shall hold
  52-10  regular annual meetings as called by the chairman.
  52-11        (b)  The purposes of this committee shall include the
  52-12  following:
  52-13              (1)  to advise the two boards on the coordination of
  52-14  postsecondary vocational-technical education and the articulation
  52-15  between postsecondary vocational-technical education and secondary
  52-16  vocational-technical education;
  52-17              (2)  to facilitate the transfer of responsibilities for
  52-18  the administration of postsecondary vocational-technical education
  52-19  from the State Board of Education to the board <Coordinating Board,
  52-20  Texas College and University System,> in accordance with Section
  52-21  111(a)(I) of the Carl D. Perkins Vocational Education Act, Public
  52-22  Law 98-524; <and>
  52-23              (3)  to advise the State Board of Education, when it
  52-24  acts as the State Board of Vocational Education, on the following:
  52-25                    (A)  <the allocation between secondary and
  52-26  postsecondary education of funds received by the State of Texas
  52-27  from the United States government under the Vocational Education
   53-1  Act of 1963, as amended, and other federal statutes relating to
   53-2  postsecondary vocational-technical education;>
   53-3                    <(B)>  the transfer of federal funds to the
   53-4  <coordinating> board for allotment to eligible public postsecondary
   53-5  institutions of higher education;
   53-6                    (B) <(C)>  the vocational-technical education
   53-7  funding for projects and institutions as determined by the
   53-8  <coordinating> board when the State Board of Vocational Education
   53-9  is required by federal law to endorse such determinations;
  53-10                    (C) <(D)>  the development and updating of the
  53-11  state plan for vocational-technical education and the evaluation of
  53-12  programs, services, and activities of postsecondary
  53-13  vocational-technical education and such amendments to the state
  53-14  plan for vocational-technical education as may relate to
  53-15  postsecondary education; <and>
  53-16                    (D) <(E)>  other matters related to postsecondary
  53-17  vocational-technical education; and
  53-18                    (E)  the coordination of curricula, instructional
  53-19  programs, research, and other functions as appropriate, including
  53-20  areas listed in Section 61.076 of this code, school-to-work and
  53-21  school-to-college transition programs, and professional development
  53-22  activities; and
  53-23              (4)  to advise the Council on Workforce and Economic
  53-24  Competitiveness on educational policy issues related to workforce
  53-25  preparation.
  53-26        SECTION 8.03.  CONFORMING AMENDMENT.  Subsection (c), Section
  53-27  481.152, Government Code, is amended to read as follows:
   54-1        (c)  The department shall administer the program and may
   54-2  enter into an interagency agreement with the Texas Commission on
   54-3  Workforce Competitiveness to perform services related to training
   54-4  and other services agreed to by the commission and the department.
   54-5        SECTION 8.04.  CONFORMING AMENDMENT.  The Texas Job-Training
   54-6  Partnership Act (Article 4413(52), Vernon's Texas Civil Statutes)
   54-7  is amended by adding Section 7A to read as follows:
   54-8        Sec. 7A.  PRIVATE INDUSTRY COUNCIL; LOCAL WORKFORCE
   54-9  DEVELOPMENT BOARD.  For the purposes of this Act, private industry
  54-10  council refers to both:
  54-11              (1)  the entity described as a private industry council
  54-12  by the federal Act; and
  54-13              (2)  a local workforce development board in a local
  54-14  market area in which a local workforce development board created
  54-15  under Article 5, Workforce and Economic Competitiveness Act, has
  54-16  been established.
  54-17                   ARTICLE 9.  TRANSITION PROVISIONS
  54-18        SECTION 9.01.  EFFECTIVE DATE; TRANSITION.  (a)  This Act
  54-19  takes effect September 1, 1993.
  54-20        (b)  The Texas Commission on Workforce Competitiveness and
  54-21  the Council on Workforce and Economic Competitiveness shall be
  54-22  appointed and operational not later than January 1, 1994.
  54-23        (c)  The Texas Employment Commission is merged into the Texas
  54-24  Commission on Workforce Competitiveness on January 1, 1994.  Any
  54-25  reference in law to the Texas Employment Commission on or after
  54-26  that date means the Texas Commission on Workforce Competitiveness.
  54-27        (d)  The programs listed in Section 2.03 of this Act are
   55-1  transferred to the Texas Commission on Workforce Competitiveness on
   55-2  January 1, 1994.  Any reference in a law governing a program listed
   55-3  in Section 2.03 of this Act to the agency that administered the
   55-4  program before that date means the Texas Commission on Workforce
   55-5  Competitiveness.
   55-6        SECTION 9.02.  TRANSITION OVERSIGHT COMMITTEE.  (a)  A
   55-7  transition oversight committee is created June 1, 1993.  The
   55-8  committee is composed of the following members:
   55-9              (1)  the chair of the Texas Employment Commission;
  55-10              (2)  the chair of the State Job Training Coordinating
  55-11  Council;
  55-12              (3)  the executive director of the Texas Department of
  55-13  Commerce;
  55-14              (4)  the chair of the State Board of Education;
  55-15              (5)  the chairman of the Texas Higher Education
  55-16  Coordinating Board;
  55-17              (6)  the presiding officer of the Texas Board of Human
  55-18  Services;
  55-19              (7)  the chair of the Texas Council on Vocational
  55-20  Education;
  55-21              (8)  the chair of the Texas Board on Aging;
  55-22              (9)  one member representing the general public to be
  55-23  appointed by the governor;
  55-24              (10)  one member representing the general public to be
  55-25  appointed by the lieutenant governor; and
  55-26              (11)  one member representing the general public to be
  55-27  appointed by the speaker of the house of representatives.
   56-1        (b)  All agencies affected by the transfer are directed to
   56-2  cooperate with the committee in formulating and implementing a
   56-3  transition plan and program.
   56-4        (c)  The committee shall develop and oversee the
   56-5  implementation of a plan that will carry out the full effect of
   56-6  this Act in an orderly fashion.  The committee shall prepare a
   56-7  written report relating to the transfer of workforce development
   56-8  programs to the Texas Commission on Workforce Competitiveness to be
   56-9  filed with the governor, the lieutenant governor, and the speaker
  56-10  of the house of representatives not later than September 1, 1993.
  56-11        (d)  The committee shall have the following duties and
  56-12  authority:
  56-13              (1)  the power to appoint a full-time staff person with
  56-14  clerical support to assist in all of the duties and
  56-15  responsibilities of the commission;
  56-16              (2)  the power to have staff transferred from state
  56-17  agencies to assist the committee in the implementation of the
  56-18  committee's duties and responsibilities;
  56-19              (3)  the power to require the affected agencies to
  56-20  develop transition programs and interim operating budgets as
  56-21  necessary to ensure an orderly transition; and
  56-22              (4)  the power to adopt interim rules and procedures
  56-23  consistent with this Act and the laws of the state.
  56-24        (e)  This section expires and the committee is abolished
  56-25  January 1, 1994.
  56-26        SECTION 9.03.  MISCELLANEOUS TRANSITION PROVISIONS.  (a)  The
  56-27  chief elected officials of a workforce development area may apply
   57-1  for certification of a local workforce development board on or
   57-2  after January 1, 1995.  The chief elected officials may request a
   57-3  waiver to allow the officials to establish a local workforce
   57-4  development board before that date from the Council on Workforce
   57-5  and Economic Competitiveness.
   57-6        (b)  To provide continuity, the chief elected officials shall
   57-7  consider appointing persons to the local workforce development
   57-8  boards who are serving or who have served previously on a private
   57-9  industry council, a quality workforce planning committee, a job
  57-10  service employer committee, and any other entity affected by this
  57-11  Act.
  57-12        (c)  A local workforce development board established under
  57-13  this Act and certified by the governor shall establish local
  57-14  workforce development centers not later than the 270th day after
  57-15  the board is certified.
  57-16        (d)  A local workforce development board created under this
  57-17  Act is required to contract with the commission for the provision
  57-18  of labor-exchange functions that were previously carried out at the
  57-19  local level by the Texas Employment Commission.  This subsection
  57-20  does not apply to a workforce development area in which a local
  57-21  workforce development board establishes cause for nonperformance.
  57-22  The inapplicability of this subsection to a workforce development
  57-23  area under this subsection may be contested by the commission.  The
  57-24  Council on Workforce and Economic Competitiveness has final
  57-25  authority to resolve the issue under this subsection.  This
  57-26  subsection expires January 1, 1998.
  57-27        (e)  A local workforce development board may not have
   58-1  authority over funds for adult basic education and literacy
   58-2  programs in the area served by the board before January 1, 1995.
   58-3        SECTION 9.04.  Emergency.  The importance of this legislation
   58-4  and the crowded condition of the calendars in both houses create an
   58-5  emergency and an imperative public necessity that the
   58-6  constitutional rule requiring bills to be read on three several
   58-7  days in each house be suspended, and this rule is hereby suspended,
   58-8  and that this Act take effect and be in force according to its
   58-9  terms, and it is so enacted.