By: Ellis S.B. No. 642
73R5908 E
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the consolidation of economic development, vocational
1-3 education, job training, employment, and unemployment insurance
1-4 programs and the development of an integrated state-local delivery
1-5 system serving all Texans.
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 Texas and the prosperity of
1-11 its citizens depends on the ability of Texas businesses to compete
1-12 effectively in the world economy;
1-13 (2) the marketing of the state and the promotion of
1-14 the state as a site for business activity and tourism will enhance
1-15 the state's economy;
1-16 (3) ongoing efforts are needed to provide stimulation
1-17 for business expansion in both domestic and foreign markets;
1-18 (4) a well-educated and highly trained workforce
1-19 provides Texas businesses with the competitive edge critical for
1-20 their success;
1-21 (5) the state's current workforce development effort
1-22 is a fragmented array of more than 21 separately funded and
1-23 administered education, job training, and employment programs
1-24 operated by seven separate state agencies;
2-1 (6) despite the best efforts of those professionals
2-2 and volunteers who struggle every day to make those programs work
2-3 and serve the needs of their clients, this fragmented approach
2-4 results in the lack of clear accountability for results,
2-5 duplication of services, inappropriate training, and wasted
2-6 resources;
2-7 (7) consolidating these various federal and state
2-8 programs in a single state-local delivery system will improve the
2-9 quality and effectiveness of services and provide Texas businesses
2-10 with an element critical to their success--a high quality
2-11 workforce;
2-12 (8) empowering local business, labor, and community
2-13 leaders to take a more active role in their communities' economic
2-14 and workforce development will enhance the quality, efficiency, and
2-15 responsiveness of these programs.
2-16 SECTION 1.02. SHORT TITLE. Articles 2 through 7 of this Act
2-17 may be cited as the Texas Economic Development and Workforce
2-18 Competitiveness Act.
2-19 SECTION 1.03. APPLICATION OF SUNSET ACT. The Texas
2-20 Commission on Commerce and Labor is subject to Chapter 325,
2-21 Government Code (Texas Sunset Act). Unless continued in existence
2-22 as provided by that chapter, the commission is abolished September
2-23 1, 2001.
2-24 SECTION 1.04. DEFINITIONS. In this Act:
2-25 (1) "Commission" means the Texas Commission on
2-26 Commerce and Labor.
2-27 (2) "Program year" means July 1 to June 30.
3-1 ARTICLE 2. TEXAS COMMISSION ON COMMERCE AND LABOR
3-2 SECTION 2.01. CREATION OF COMMISSION. The Texas Commission
3-3 on Commerce and Labor is created.
3-4 SECTION 2.02. PURPOSE OF COMMISSION. The commission is
3-5 created for the purpose of consolidating the administration and
3-6 delivery of federal and state programs for economic and workforce
3-7 development. The commission is responsible for:
3-8 (1) meeting the needs of Texas business for business
3-9 development assistance, marketing Texas products, and promoting
3-10 Texas as a place to do business;
3-11 (2) meeting the needs of Texas business for a highly
3-12 skilled and productive workforce;
3-13 (3) meeting the needs of Texas workers for education,
3-14 skills training, and labor market information to enhance their
3-15 employability and standard of living; and
3-16 (4) meeting the needs of Texas taxpayers for ensuring
3-17 that their tax dollars are spent effectively and efficiently.
3-18 SECTION 2.03. DESIGNATION OF COMMISSION. The commission is
3-19 designated as the State Board for Vocational Education. The
3-20 commission shall assume the leadership role and administrative
3-21 responsibilities for state-level administration of secondary and
3-22 postsecondary technical-vocational education programs in public
3-23 local education agencies and other eligible institutions of higher
3-24 education.
3-25 SECTION 2.04. JURISDICTION OF COMMISSION. (a) The
3-26 commission administers the following programs in this state:
3-27 (1) economic development programs, including promotion
4-1 and marketing, domestic business development, international
4-2 business development, and tourism programs under Section 481.006,
4-3 Government Code, and all other programs currently administered and
4-4 all current functions and responsibilities of the Texas Department
4-5 of Commerce and its advisory boards;
4-6 (2) the Texas Job-Training Partnership Act (Article
4-7 4413(52), Vernon's Texas Civil Statutes);
4-8 (3) vocational and technical education programs under
4-9 Sections 21.111 through 21.113, and 21.115, and Chapters 31, 32,
4-10 and 130, Education Code;
4-11 (4) adult education programs under Section 11.18,
4-12 Education Code;
4-13 (5) apprenticeship programs under Chapter 33,
4-14 Education Code;
4-15 (6) 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
4-18 (7) the senior citizens employment program under
4-19 Chapter 101, Human Resources Code;
4-20 (8) the Smart Jobs Fund Program under Subchapter J,
4-21 Chapter 481, Government Code;
4-22 (9) the Texas Unemployment Compensation Act (Article
4-23 5221b-1 et seq., Vernon's Texas Civil Statutes);
4-24 (10) the Texas child labor law (Article 5181.1,
4-25 Vernon's Texas Civil Statutes);
4-26 (11) the Texas payday law (Article 5155, Revised
4-27 Statutes);
5-1 (12) the public information program of the Texas
5-2 Minimum Wage Act of 1970 (Article 5159d, Vernon's Texas Civil
5-3 Statutes);
5-4 (13) literacy funds available to the state under the
5-5 National Literacy Act; and
5-6 (14) the National and Community Service Act of 1990
5-7 (42 U.S.C. Section 12501 et seq.).
5-8 (b) To the fullest extent allowable under federal law the
5-9 commission shall also administer:
5-10 (1) the Job Opportunities and Basic Skills program
5-11 under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section
5-12 682); and
5-13 (2) the food stamp employment and training program
5-14 authorized under 7 U.S.C. Section 2015(d).
5-15 SECTION 2.05. MEMBERSHIP REQUIREMENTS. (a) The commission
5-16 is 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 and make the
5-23 appointments without regard to the race, creed, sex, disability,
5-24 religion, or national origin of the appointees.
5-25 SECTION 2.06. 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 2.07. 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, the person may serve as a member of the commission or act as
6-11 the general counsel to the commission.
6-12 SECTION 2.08. TERMS; VACANCY. (a) Members of the
6-13 commission are appointed for fixed and staggered six-year terms,
6-14 with one member's term expiring on February 1 of each odd-numbered
6-15 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 2.09. CHAIR. The member representing the public is
6-19 the chair of the commission.
6-20 SECTION 2.10. 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 for Workforce Competitiveness or
7-8 the Council for Economic Development that the member is eligible to
7-9 attend during each calendar year;
7-10 (4) violates a prohibition established by Section 2.06
7-11 or 2.07; or
7-12 (5) fails to perform any of the duties as established
7-13 by Section 2.11.
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 2.11. 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 Texas;
7-27 (4) promote the development and adoption of a
8-1 business- and industry-driven skills standards and certification
8-2 system;
8-3 (5) implement economic development policies and
8-4 programs consistent with recommendations from the Council for
8-5 Economic Development;
8-6 (6) implement a statewide system for evaluating the
8-7 effectiveness of all workforce development programs using
8-8 administrative records of the state's unemployment compensation
8-9 program and other such 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;
8-16 (9) ensure that the academic curricula of the
8-17 vocational and technical programs are coordinated;
8-18 (10) advocate for the local workforce development
8-19 councils at the state and federal levels;
8-20 (11) provide for a comprehensive labor market
8-21 information system serving employers, students, workers, and state
8-22 and local planning organizations;
8-23 (12) contract with local workforce development boards
8-24 for program planning and service delivery;
8-25 (13) provide training and professional development
8-26 services for commission staff, council members, and local workforce
8-27 development boards and their staff;
9-1 (14) provide technical assistance and support to local
9-2 workforce development boards;
9-3 (15) appoint an executive director; and
9-4 (16) perform such other functions and duties as may be
9-5 required by law or assigned by the governor.
9-6 (b) The commission may:
9-7 (1) adopt rules, make expenditures, enter into
9-8 contracts with public, private, and nonprofit organizations,
9-9 require reports, conduct investigations, and take other action it
9-10 considers necessary or suitable to fulfill its administrative
9-11 duties;
9-12 (2) delegate to the executive director any power or
9-13 duty imposed on the commission by law, including the authority to
9-14 make final orders or decisions, except that the commission may not
9-15 delegate:
9-16 (A) the power or duty to adopt rules; and
9-17 (B) duties related to the approval and issuance
9-18 of bonds.
9-19 SECTION 2.12. TRAINING FOR LOCAL WORKFORCE DEVELOPMENT BOARD
9-20 MEMBERS. (a) The commission shall provide management and board
9-21 development training to all members of local workforce development
9-22 boards. The training shall include information regarding the
9-23 importance of a high quality workforce to the economic prosperity
9-24 of 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 within three months of beginning service on a
10-1 certified board or that member shall be ineligible to continue
10-2 serving on the board.
10-3 (b) Training may be provided directly by the commission or
10-4 through a third party that shall have demonstrated experience in
10-5 providing training to local workforce development or similar
10-6 boards. The quality of training shall be reviewed and appraised
10-7 periodically by the Council for Workforce Competitiveness.
10-8 (c) Local workforce development boards shall cover 25
10-9 percent of the costs for all members' management and board
10-10 development training.
10-11 SECTION 2.13. THE EXECUTIVE DIRECTOR. The executive
10-12 director of the commission shall:
10-13 (1) perform the duties assigned by the commission and
10-14 state law and shall administer the day-to-day operations of the
10-15 agency;
10-16 (2) appoint and prescribe the powers and duties of all
10-17 officers, accountants, attorneys, experts, and other persons as
10-18 necessary in the performance of the commission's duties;
10-19 (3) delegate authority to persons appointed under this
10-20 section, as the executive director considers reasonable and proper,
10-21 for effective administration;
10-22 (4) designate an associate director for occupational
10-23 education as required by federal law to assist in the linkage of
10-24 secondary vocational/technical education programs operated by the
10-25 commission and corresponding academic programs operated by the
10-26 Central Education Agency;
10-27 (5) bond any person that handles money or signs checks
11-1 for the commission;
11-2 (6) employ personnel necessary for the administration
11-3 of the commission's duties;
11-4 (7) develop an intradepartment career ladder program,
11-5 one part of which shall require the intradepartmental posting of
11-6 all nonentry-level positions concurrently with any public posting;
11-7 (8) develop a system of annual performance evaluations
11-8 based on measurable job tasks on which all merit pay for commission
11-9 employees must be based;
11-10 (9) provide to the commission's employees as often as
11-11 is necessary information regarding their qualifications under this
11-12 article and their responsibilities under applicable laws relating
11-13 to standards of conduct for state officers and employees;
11-14 (10) prepare and maintain a written policy statement
11-15 that ensures implementation of a program of equal employment
11-16 opportunity under which all personnel transactions are made without
11-17 regard to race, color, disability, sex, religion, age, or national
11-18 origin, and that must include:
11-19 (A) personnel policies, including policies
11-20 relating to recruitment, evaluation, selection, appointment,
11-21 training, and promotion of personnel;
11-22 (B) a comprehensive analysis of the commission's
11-23 workforce that meets federal and state guidelines;
11-24 (C) procedures by which a determination can be
11-25 made of significant underuse in the commission's workforce of all
11-26 persons for whom federal or state guidelines encourage a more
11-27 equitable balance; and
12-1 (D) reasonable methods to appropriately address
12-2 areas of significant underuse in the commission's workforce of all
12-3 persons for whom federal and state guidelines encourage a more
12-4 equitable balance.
12-5 ARTICLE 3. STATE POLICY COUNCILS
12-6 PART A. COUNCIL FOR ECONOMIC DEVELOPMENT
12-7 SECTION 3.01. CREATION OF COUNCIL. The Council for Economic
12-8 Development is created.
12-9 SECTION 3.02. MEMBERSHIP OF COUNCIL. (a) The council shall
12-10 be appointed by the governor, who shall designate one of the
12-11 members representing business to be chairperson. Members will be
12-12 appointed to three-year fixed and staggered terms. The membership
12-13 shall reflect ethnic and geographic diversity of the state. The
12-14 council shall be composed as follows:
12-15 (1) six members representing business, at least two of
12-16 which represent businesses employing fewer than 100 employees;
12-17 (2) two members representing organized labor;
12-18 (3) one member from a local economic development
12-19 organization in a city above 400,000;
12-20 (4) one member from a local economic development
12-21 organization in a city under 50,000;
12-22 (5) one member from a local economic development
12-23 organization in a city between 50,000 and 400,000;
12-24 (6) one member from a nonprofit organization dedicated
12-25 to community development; and
12-26 (7) three members of the commission, who shall serve
12-27 in an ex officio, nonvoting capacity.
13-1 (b) The council may create committees as needed to carry out
13-2 its duties and responsibilities. The council may create technical
13-3 advisory groups composed of both council and noncouncil members to
13-4 provide assistance as needed.
13-5 SECTION 3.03. FUNCTIONS OF COUNCIL. The council shall:
13-6 (1) develop and recommend to the governor, in concert
13-7 with the Council for Workforce Competitiveness, a strategic plan
13-8 for the state's economic and workforce development effort;
13-9 (2) recommend to the governor the goals, objectives,
13-10 and performance standards to guide and evaluate the economic
13-11 development programs implemented by the commission;
13-12 (3) recommend to the governor new programs and
13-13 delivery systems to improve the efficiency and effectiveness of the
13-14 state's economic development initiatives;
13-15 (4) monitor and evaluate the operation and results of
13-16 the state's economic development programs;
13-17 (5) serve as an advocate for the development of
13-18 high-performance work organizations in Texas business and
13-19 government;
13-20 (6) recommend to the governor an approach for
13-21 fostering the development of a business- and industry-driven skills
13-22 standards and certification system for occupations requiring
13-23 subbaccalaureate-level education and training;
13-24 (7) advise the governor on issues relating to small
13-25 business, rural development, and international trade, including the
13-26 impact of the North American Free Trade Agreement; and
13-27 (8) promote the economic competitiveness of businesses
14-1 and workers throughout the state.
14-2 SECTION 3.04. COUNCIL STAFFING AND SUPPORT. (a) The
14-3 council shall have an executive director who reports directly to
14-4 the chairperson and the necessary professional, technical, and
14-5 support staff required to effectively carry out its duties and
14-6 responsibilities. This staff shall be independent of the
14-7 commission. Council staff may be augmented by staff from state
14-8 agencies temporarily assigned to assist with special projects.
14-9 (b) All state agencies shall provide complete and accurate
14-10 information in a timely manner to assist the council in carrying
14-11 out its responsibilities.
14-12 (c) Any federal funding for council staff and functions
14-13 shall be allocated in accordance with federal requirements.
14-14 (d) Additional financial support for the council shall be
14-15 provided by the commission.
14-16 SECTION 3.05. MEETINGS. This council shall meet not less
14-17 than quarterly.
14-18 PART B. COUNCIL FOR WORKFORCE COMPETITIVENESS
14-19 SECTION 3.06. CREATION OF COUNCIL. The Council for
14-20 Workforce Competitiveness is created.
14-21 SECTION 3.07. MEMBERSHIP OF COUNCIL. (a) The council shall
14-22 be appointed by the governor, who shall designate one of the
14-23 business representatives to be chairperson. Members shall serve
14-24 three-year, fixed and staggered terms. The membership shall
14-25 reflect the ethnic and geographic diversity of the state but may
14-26 not exceed 40 members.
14-27 (b) The council shall be composed as follows:
15-1 (1) the head of each state agency responsible for the
15-2 administration of an applicable federal or state human resource
15-3 program;
15-4 (2) one or more representatives from each of the
15-5 following categories, the total of which shall constitute not less
15-6 than 15 percent of the membership of the council:
15-7 (A) local public education;
15-8 (B) a postsecondary institution; and
15-9 (C) a secondary or postsecondary vocational
15-10 educational institution;
15-11 (3) one or more representatives of community-based
15-12 organizations;
15-13 (4) representatives of business and industry,
15-14 including individuals who are representing business and industry on
15-15 local workforce development boards, who shall constitute not less
15-16 than 15 percent of the membership of the council;
15-17 (5) representatives of organized labor selected from
15-18 among individuals nominated by recognized state labor federations,
15-19 who shall constitute not less than 15 percent of the membership of
15-20 the council;
15-21 (6) additional members, who may be selected from:
15-22 (A) representatives from local welfare agencies;
15-23 (B) representatives from public housing
15-24 agencies;
15-25 (C) representatives from units of general local
15-26 government or consortia of such units, appointed from nominations
15-27 made by the chief elected officials of such units or consortia;
16-1 (D) representatives from the state legislature;
16-2 (E) representatives from any state or local
16-3 program that receives funding under an applicable federal human
16-4 resource program that the governor determines to have a direct
16-5 interest in the utilization of human resources within the state;
16-6 and
16-7 (F) individuals who have special knowledge and
16-8 qualifications with respect to special education and career
16-9 development needs of hard-to-serve individuals; and
16-10 (7) members of the commission, who shall serve as ex
16-11 officio, nonvoting members of the council.
16-12 (c) None of the following categories of individuals may
16-13 constitute more than 60 percent of the membership of the council:
16-14 (1) individuals selected under Subsection (b)(1) of
16-15 this section;
16-16 (2) individuals appointed under Subsection (b)(2) of
16-17 this section;
16-18 (3) individuals appointed under Subsection (b)(3) of
16-19 this section;
16-20 (4) individuals appointed under Subsection (b)(4) of
16-21 this section;
16-22 (5) individuals appointed under Subsection (b)(5) of
16-23 this section; and
16-24 (6) individuals selected under Subsection (b)(7) of
16-25 this section.
16-26 (d) The council may create committees as needed to carry out
16-27 its duties and responsibilities. The council may create technical
17-1 advisory groups composed of both council and noncouncil members to
17-2 provide assistance as needed.
17-3 SECTION 3.08. RESPONSIBILITIES AND FUNCTIONS OF COUNCIL.
17-4 (a) The council shall assume the state advisory council
17-5 responsibilities authorized under the following federal acts:
17-6 (1) the Job Training Reform Amendments of 1992;
17-7 (2) the Carl D. Perkins Vocational and Applied
17-8 Technology Education Act (20 U.S.C. Section 2301 et seq.);
17-9 (3) the National and Community Service Act of 1990 (42
17-10 U.S.C. Section 12501 et seq.);
17-11 (4) the Adult Education Act (20 U.S.C. Section 1201 et
17-12 seq.);
17-13 (5) the Wagner-Peyser Act (29 U.S.C. Section 49 et
17-14 seq.);
17-15 (6) Part F of Subchapter IV of the Social Security Act
17-16 (42 U.S.C. Section 681 et seq.);
17-17 (7) the employment program established under Section
17-18 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. Section
17-19 2015(d)(4)); and
17-20 (8) the National Literacy Act.
17-21 (b) The council shall assume responsibilities for the
17-22 following state advisory councils:
17-23 (1) the Texas Literacy Council;
17-24 (2) the Apprenticeship Advisory Committee; and
17-25 (3) the Technical Advisory Committee to the State
17-26 Occupational Information Coordinating Council.
17-27 (c) The functions of the council include:
18-1 (1) promoting the development of a well-educated,
18-2 highly skilled workforce in Texas;
18-3 (2) serving as an advocate for the development of an
18-4 integrated workforce development system to provide quality services
18-5 addressing the needs of Texas business and workers;
18-6 (3) recommending to the governor the designation of
18-7 workforce development areas for the local planning and delivery of
18-8 workforce development programs;
18-9 (4) developing and recommending to the governor, in
18-10 concert with the Council for Economic Development, a strategic plan
18-11 for the state's economic and workforce development effort;
18-12 (5) designing and implementing a state-local planning
18-13 process for developing goals, objectives, and performance standards
18-14 for the state's workforce development programs;
18-15 (6) recommending to the governor the goals,
18-16 objectives, and performance standards to guide and evaluate the
18-17 workforce development programs implemented by the commission;
18-18 (7) reviewing local workforce development plans and
18-19 making recommendations to the governor for approval;
18-20 (8) recommending to the governor new programs and
18-21 delivery systems to improve the efficiency and effectiveness of the
18-22 state's workforce development initiatives;
18-23 (9) reviewing the state's education, workforce
18-24 development, and human services programs and systems and making
18-25 recommendations to the governor regarding opportunities for
18-26 coordination that would improve the quality of services;
18-27 (10) monitoring and evaluating the operation and
19-1 results of the state's workforce development programs; and
19-2 (11) carrying out the federal and state mandated
19-3 duties and responsibilities for all advisory councils required
19-4 under applicable federal and state workforce development programs
19-5 consolidated under the commission.
19-6 SECTION 3.09. COUNCIL STAFFING AND SUPPORT. (a) The
19-7 council shall have an executive director, who reports directly to
19-8 the chairperson, and the necessary professional, technical, and
19-9 support staff required to effectively carry out its duties and
19-10 responsibilities. This staff shall be independent of the
19-11 commission. Council staff may be augmented by staff from state
19-12 agencies temporarily assigned to assist with special projects.
19-13 (b) All state agencies shall provide complete and accurate
19-14 information in a timely manner to assist the council in carrying
19-15 out its responsibilities.
19-16 (c) Any federal funding for council staff and functions
19-17 shall be allocated in accordance with federal requirements. All
19-18 expenditures shall reflect priority for the designated
19-19 responsibilities of that funding source.
19-20 (d) Each state agency represented on the council shall
19-21 provide funds for the financial support of the council's operations
19-22 at least proportional to their financial participation in the
19-23 workforce development system.
19-24 SECTION 3.10. MEETINGS. The council shall meet not less
19-25 than quarterly.
19-26 ARTICLE 4. ADVISORY COMMITTEE ON
19-27 VOCATIONAL-TECHNICAL EDUCATION
20-1 SECTION 4.01. ADVISORY COMMITTEE ON VOCATIONAL-TECHNICAL
20-2 EDUCATION. (a) The advisory committee on vocational-technical
20-3 education is created to advise the Texas Higher Education
20-4 Coordinating Board, the State Board of Education, and the
20-5 commission in coordinating secondary and postsecondary
20-6 vocational-technical activities and vocational-technical teacher
20-7 education programs offered or proposed to be offered in the local
20-8 education agencies' colleges and universities of this state. The
20-9 committee shall be composed of the three members of the commission,
20-10 three members from the Texas Higher Education Coordinating Board
20-11 appointed by the chairman of the board, and three members of the
20-12 State Board of Education appointed by the chairman of the board. A
20-13 member of the coordinating board shall be designated as chairman of
20-14 the advisory committee by the chairman of the coordinating board.
20-15 The committee shall hold regular annual meetings as called by the
20-16 chairman.
20-17 (b) The committee shall:
20-18 (1) advise the agencies on the coordination of
20-19 secondary and postsecondary vocational-technical education and the
20-20 articulation between postsecondary vocational-technical education
20-21 and secondary vocational-technical education;
20-22 (2) facilitate the transfer of responsibilities for
20-23 the administration of postsecondary vocational-technical education
20-24 from the Texas Higher Education Coordinating Board to the
20-25 commission;
20-26 (3) facilitate the transfer of responsibilities for
20-27 the administration of secondary vocational-technical education from
21-1 the Central Education Agency to the commission; and
21-2 (4) advise the commission, when it acts as the State
21-3 Board of Vocational Education, on:
21-4 (A) the allocation between secondary and
21-5 postsecondary education of funds received by the state from the
21-6 federal government under the Carl D. Perkins Vocational and
21-7 Applied Technology Education Act and other federal statutes
21-8 relating to postsecondary vocational-technical education;
21-9 (B) the transfer of federal funds to the
21-10 coordinating board for allotment to eligible public postsecondary
21-11 institutions of higher education;
21-12 (C) the vocational-technical education funding
21-13 for projects and institutions;
21-14 (D) the development and updating of the state
21-15 plan for vocational-technical education and the evaluation of
21-16 programs, services, and activities of vocational-technical
21-17 education and such amendments to the state plan for
21-18 vocational-technical education as may relate to secondary and
21-19 postsecondary education; and
21-20 (E) other matters related to secondary and
21-21 postsecondary vocational-technical education.
21-22 ARTICLE 5. DESIGNATING WORKFORCE DEVELOPMENT AREAS
21-23 SECTION 5.01. DESIGNATING WORKFORCE DEVELOPMENT AREAS. (a)
21-24 The governor shall, after receiving the recommendations of the
21-25 Council for Workforce Competitiveness, publish a proposed
21-26 designation of local workforce development areas for the planning
21-27 and delivery of workforce development services, each of which:
22-1 (1) is composed of more than one contiguous unit of
22-2 general local government, which shall include at least one county;
22-3 (2) is consistent with either a local labor market
22-4 area, a metropolitan statistical area, one of the 24 substate
22-5 planning areas or one of the 10 uniform state service regions; and
22-6 (3) is of such size to have the administrative
22-7 resources necessary to provide for the effective planning,
22-8 management, and delivery of workforce development services.
22-9 (b) Units of general local government, business and labor
22-10 organizations, and other affected persons and organizations shall
22-11 be given an opportunity to comment on the proposed designation of
22-12 workforce development areas and to request revisions thereof.
22-13 (c) The governor, after considering all comments and
22-14 requests for changes, shall make the final designation of workforce
22-15 development areas. The governor may redesignate workforce
22-16 development areas no more frequently than every two years. Such
22-17 redesignation shall be made not later than four months before the
22-18 beginning of a program year.
22-19 ARTICLE 6. LOCAL WORKFORCE DEVELOPMENT BOARDS
22-20 SECTION 6.01. CREATION OF LOCAL WORKFORCE DEVELOPMENT
22-21 BOARDS. (a) The chief elected officials in a workforce
22-22 development area designated by the governor under Section 5.01 of
22-23 this Act may form, in accordance with rules established by the
22-24 commission, a local workforce development board to plan, oversee,
22-25 and evaluate the delivery of all workforce development programs in
22-26 that workforce development area.
22-27 (b) Upon reaching an agreement regarding the formation of a
23-1 local workforce development board, the chief elected officials
23-2 shall reduce that agreement to writing. This local government
23-3 agreement shall include:
23-4 (1) the purpose for the agreement;
23-5 (2) the process that will be used to select the chief
23-6 elected official who will act on behalf of the other chief elected
23-7 officials;
23-8 (3) the initial size of the workforce development
23-9 board;
23-10 (4) the process to be used to appoint the board
23-11 members, which must be consistent with applicable federal and state
23-12 laws; and
23-13 (5) the terms of office of the members of the board.
23-14 (c) The chief elected officials shall consider the views of
23-15 all affected local organizations prior to making a final decision
23-16 regarding the formation of a local workforce development board,
23-17 including the private industry councils and the quality workforce
23-18 planning committees.
23-19 (d) Until the chief elected officials in a workforce
23-20 development area are able to reach an agreement providing for the
23-21 establishment of a local workforce development board and the board
23-22 is certified by the governor, none of the powers and duties granted
23-23 a workforce development board under this Act shall be exercised in
23-24 that area.
23-25 SECTION 6.02. MEMBERSHIP OF THE BOARD. (a) The board shall
23-26 be appointed by the chief elected officials consistent with the
23-27 local government agreement and applicable federal and state laws.
24-1 Board members shall serve for fixed and staggered terms and shall
24-2 reflect the ethnic and geographic diversity of the workforce
24-3 development area. The board shall be composed as follows:
24-4 (1) representatives of the private sector, who shall
24-5 constitute a majority of the membership of the board and who shall
24-6 be owners of business concerns, chief executives or chief operating
24-7 officers of nongovernmental employers, or other private sector
24-8 executives who have substantial management or policy
24-9 responsibilities;
24-10 (2) representatives of organized labor and
24-11 community-based organizations, who shall constitute not less than
24-12 15 percent of the membership of the board; and
24-13 (3) representatives of each of the following:
24-14 (A) educational agencies, including secondary
24-15 and postsecondary practitioners representing vocational education,
24-16 which shall be representative of all educational agencies in the
24-17 service delivery area;
24-18 (B) vocational rehabilitation agencies;
24-19 (C) public assistance agencies;
24-20 (D) economic development agencies; and
24-21 (E) the public employment service.
24-22 (b) The chairman of the board shall be selected from among
24-23 members of the board who are representatives of the private sector.
24-24 (c) Private sector representatives on the board shall be
24-25 selected from among individuals nominated by general-purpose
24-26 business organizations after consulting with and receiving
24-27 recommendations from other business organizations in the workforce
25-1 development area. The number of such nominations shall be at least
25-2 150 percent of the number of individuals to be appointed under
25-3 Subsection (a)(1) of this section. Such nominations and the
25-4 individuals selected from such nominations shall reasonably
25-5 represent the industrial and demographic composition of the
25-6 business community. Whenever possible, at least one-half of such
25-7 business and industry representatives shall be representatives of
25-8 small business, including minority business.
25-9 (d) In this section:
25-10 (1) "General purpose business organizations" means
25-11 organizations that admit to membership any for-profit business
25-12 operating within the workforce development area.
25-13 (2) "Small business" means private for-profit
25-14 enterprises employing 500 or fewer employees.
25-15 (e) The education representatives on the board shall be
25-16 selected from among individuals nominated by regional or local
25-17 educational agencies, vocational education institutions,
25-18 institutions of higher education, including entities offering adult
25-19 education, or general organizations of such institutions, within
25-20 the workforce development area.
25-21 (f) The labor representatives on the board shall be selected
25-22 from individuals recommended by recognized state and local labor
25-23 federations. If the state or local labor federation fails to
25-24 nominate a sufficient number of individuals to meet the labor
25-25 representation requirements of Subsection (a)(2) of this section,
25-26 individual workers may be included on the council to complete the
25-27 labor representation.
26-1 (g) The remaining members of the board shall be selected
26-2 from individuals recommended by interested organizations.
26-3 (h) The board may create committees as needed to carry out
26-4 its duties and responsibilities. The board may create technical
26-5 advisory groups composed of both council and noncouncil members to
26-6 provide assistance as needed.
26-7 (i) Members of the board shall avoid the appearance of
26-8 conflict of interest by recusing themselves on votes of the board
26-9 directly affecting the funding of their organization or any
26-10 organization that they represent.
26-11 SECTION 6.03. CERTIFICATION OF BOARD. The governor shall
26-12 certify a local workforce development board if the governor
26-13 determines that its composition and appointments are consistent
26-14 with applicable federal and state laws and requirements. Such
26-15 certification shall be made or denied within 30 days after the date
26-16 on which a certification request is submitted to the governor.
26-17 Until certified by the governor, none of the powers and duties
26-18 granted a board under this Act shall be exercised in that workforce
26-19 development area.
26-20 SECTION 6.04. FUNCTIONS OF BOARD. The board shall be
26-21 directly responsible and accountable to the commission for the
26-22 planning and delivery of workforce development services in the
26-23 workforce development area. The board shall:
26-24 (1) serve as a single point of contact for local
26-25 business to communicate their skill needs and influence the
26-26 direction of workforce education and training programs in the
26-27 workforce development area;
27-1 (2) develop a local plan for addressing the workforce
27-2 development needs of the workforce development area that shall:
27-3 (A) be responsive to the goals, objectives, and
27-4 performance standards established by the governor;
27-5 (B) target services to meet local needs,
27-6 including the identification of industries and employers likely to
27-7 employ workers who complete job training programs; and
27-8 (C) ensure that the workforce development
27-9 system, including the educational system, has the flexibility to
27-10 meet the needs of local businesses;
27-11 (3) designate itself or some other entity as its
27-12 fiscal agent to be responsible and accountable for the management
27-13 of all workforce development funds available to the board;
27-14 (4) create local workforce development centers as
27-15 established in Article 7;
27-16 (5) review and approve all vocational and technical
27-17 training programs supported with federal or state funding to ensure
27-18 that the training provided meets the needs of local businesses;
27-19 (6) review and approve plans for secondary and
27-20 postsecondary vocational and technical education programs to be
27-21 provided in the workforce development area;
27-22 (7) assume the functions and responsibilities of local
27-23 workforce development advisory boards and councils authorized by
27-24 federal or state laws, including but not limited to private
27-25 industry councils, quality workforce planning committees, job
27-26 service employer committees and local vocational program advisory
27-27 committees as appropriate;
28-1 (8) monitor and evaluate the effectiveness of the
28-2 workforce development centers, other contractors providing
28-3 workforce development services for the board, and vocational and
28-4 technical education programs operated by local education agencies
28-5 and institutions of higher education;
28-6 (9) have the authority to increase or decrease the
28-7 size of its membership consistent with applicable federal laws; and
28-8 (10) promote the cooperation and coordination among
28-9 public organizations, community organizations, and private business
28-10 providing workforce development services.
28-11 SECTION 6.05. BUDGET AND STAFFING. The board shall
28-12 establish a budget for itself that must be included in the local
28-13 workforce development plan submitted to the Council for Workforce
28-14 Competitiveness. The board shall have such professional,
28-15 technical, and support staff as necessary to carry out its
28-16 strategic planning, oversight, and evaluation functions. The board
28-17 staff shall be separate from and independent of any organization
28-18 providing education or workforce development services in the
28-19 workforce development area.
28-20 SECTION 6.06. APPROVAL OF FISCAL AGENT. The commission
28-21 shall approve the fiscal agent selected by the local workforce
28-22 development board prior to the disbursement of any federal or state
28-23 workforce development funds to the board. The commission's
28-24 approval shall be based on an audit of the financial capability of
28-25 the fiscal agent to assure that fiscal controls and fund accounting
28-26 procedures as may be necessary to guarantee the proper disbursal of
28-27 and accounting for federal and state funds are in place.
29-1 SECTION 6.07. CONTRACTING FOR SERVICE DELIVERY. The local
29-2 workforce development boards shall not be direct providers of
29-3 client services. The local board may request a waiver of this
29-4 requirement from the Council for Workforce Competitiveness. The
29-5 request for such a waiver must include a detailed justification
29-6 based on the lack of existing alternatives for delivery of client
29-7 services in the workforce development area.
29-8 SECTION 6.08. INCENTIVES AND WAIVERS. (a) A local
29-9 workforce development board certified by the governor is eligible
29-10 for incentives and program waivers to promote and support
29-11 integrated planning and delivery of workforce development services.
29-12 (b) Incentives, to the extent feasible under existing
29-13 federal and state workforce development laws, shall include but not
29-14 be limited to:
29-15 (1) priority for discretionary funding, including
29-16 financial incentives for the consolidation of service delivery
29-17 areas authorized under the federal Job Training Partnership Act;
29-18 and
29-19 (2) block grants of formula allocated funding.
29-20 (c) The governor, in concert with the local workforce
29-21 development boards, shall identify specific barriers to integrated
29-22 service delivery at the local level, shall request waivers from
29-23 existing federal and state regulations, and shall advocate for
29-24 changes in federal and state laws to promote local service
29-25 integration.
29-26 SECTION 6.09. SANCTIONS FOR NONPERFORMANCE. (a) The
29-27 commission shall provide technical assistance to local workforce
30-1 development areas failing to meet performance standards established
30-2 under this Act and other applicable federal and state laws. If a
30-3 local workforce development area fails to meet such performance
30-4 standards for two consecutive program years, the commission shall
30-5 develop and impose a reorganization plan, which may include
30-6 restructuring of the local workforce development board, prohibiting
30-7 the use of designated service providers, and merging the local
30-8 workforce development area with another such area.
30-9 (b) A local workforce development area that is the subject
30-10 of a reorganization plan may, within 30 days of receiving notice of
30-11 the plan, appeal to the governor to rescind or revise the plan.
30-12 SECTION 6.10. SANCTIONS FOR LACK OF FISCAL ACCOUNTABILITY.
30-13 (a) If, as a result of financial and compliance audits or
30-14 otherwise, the commission determines that there is a substantial
30-15 violation of a specific provision of this Act, or of other
30-16 applicable federal and state laws and regulations, and corrective
30-17 action has not been taken, the commission shall:
30-18 (1) issue a notice of intent to revoke all or part of
30-19 the local plan affected;
30-20 (2) issue a notice of intent to immediately cease
30-21 reimbursement of local program costs; or
30-22 (3) impose a reorganization plan for the local
30-23 workforce development area.
30-24 (b) A local workforce development area that is the subject
30-25 of a reorganization plan may, within 30 days of receiving notice of
30-26 the plan, appeal to the governor to rescind or revise the plan.
30-27 SECTION 6.11. NONPROFIT STATUS; ABILITY TO SOLICIT FUNDS.
31-1 (a) Local workforce development boards may apply for and receive a
31-2 charter as a private, nonprofit corporation under the laws of the
31-3 State of Texas and may choose to be recognized as 501(c)(3)
31-4 organizations under the Internal Revenue Code.
31-5 (b) In addition to receiving funds specified herein, the
31-6 local workforce development boards may solicit additional funds
31-7 from other sources, both public and private. The board may not
31-8 solicit nor may it accept monies from entities with whom the board
31-9 contracts for the delivery of services.
31-10 ARTICLE 7. THE LOCAL DELIVERY SYSTEM
31-11 SECTION 7.01. WORKFORCE DEVELOPMENT CENTERS. The local
31-12 workforce development board shall establish workforce development
31-13 centers accessible to workers and employers throughout the
31-14 workforce development area. Each center shall provide access to
31-15 the full array of information and services available in the
31-16 workforce development area and shall address the individual needs
31-17 of workers and employers. Services available shall be tailored to
31-18 individual needs and shall include but not be limited to the
31-19 following:
31-20 (1) labor market information, including the skills of
31-21 the area workforce, available job openings, and the education,
31-22 training, and employment opportunities in the local area, in the
31-23 state, and as feasible, in the nation;
31-24 (2) common intake and eligibility determination for
31-25 all workforce development programs and services;
31-26 (3) independent assessment of individual needs and the
31-27 development of an individual service strategy;
32-1 (4) centralized and continuous case management and
32-2 counseling;
32-3 (5) individual referral for services such as basic
32-4 education, classroom skills training, on-the-job training, and
32-5 customized training; and
32-6 (6) supportive services, including child care, loans,
32-7 and other forms of financial assistance required to participate in
32-8 and complete training.
32-9 SECTION 7.02. RIGHT TO KNOW. The local workforce
32-10 development center shall provide each individual who participates
32-11 in a vocational or technical training program with a written
32-12 document that informs the person of the likelihood of employment
32-13 and the wage level that the individual may expect on completion of
32-14 the training.
32-15 ARTICLE 8. TRANSITION PROVISIONS
32-16 SECTION 8.01. EFFECTIVE DATE; TRANSITION. (a) This Act
32-17 takes effect June 1, 1993.
32-18 (b) The Texas Commission on Commerce and Labor, the Council
32-19 for Economic Development, and the Council for Workforce
32-20 Competitiveness shall be appointed and operational not later than
32-21 September 1, 1993.
32-22 (c) The Texas Employment Commission is merged into the Texas
32-23 Commission on Commerce and Labor on January 1, 1994. Any reference
32-24 in law to the Texas Employment Commission on or after that date
32-25 means the Texas Commission on Commerce and Labor.
32-26 (d) The Texas Department of Commerce is merged into the
32-27 Texas Commission on Commerce and Labor on January 1, 1994. Any
33-1 reference in law to the Texas Department of Commerce on or after
33-2 that date means the Texas Commission on Commerce and Labor.
33-3 SECTION 8.02. TRANSITION OVERSIGHT COMMITTEE. (a) A
33-4 transition oversight committee is created June 1, 1993. The
33-5 committee is composed of the following members:
33-6 (1) the chair of the Texas Employment Commission;
33-7 (2) the chair of the State Job Training Coordinating
33-8 Council;
33-9 (3) the chair of the policy council of the Texas
33-10 Department of Commerce;
33-11 (4) the chair of the State Board of Education;
33-12 (5) the chair of the Texas Higher Education
33-13 Coordinating Board;
33-14 (6) the chair of the Texas Board of Human Services;
33-15 (7) the chair of the Texas Council on Vocational
33-16 Education;
33-17 (8) the chair of the Texas Board on Aging;
33-18 (9) one member representing the general public to be
33-19 appointed by the governor;
33-20 (10) one member representing the general public to be
33-21 appointed by the lieutenant governor; and
33-22 (11) one member representing the general public to be
33-23 appointed by the speaker of the house of representatives.
33-24 (b) All agencies affected by transfer are hereby directed to
33-25 cooperate with the committee in formulating and implementing a
33-26 transition plan and program.
33-27 (c) The committee shall develop and oversee the
34-1 implementation of a plan that will carry out the full effect of
34-2 this Act in an orderly fashion. The committee shall prepare a
34-3 written report relating to the transfer of workforce development
34-4 programs to the Texas Commission on Commerce and Labor to be filed
34-5 with the governor, the lieutenant governor, and the speaker of the
34-6 house of representatives not later than September 1, 1993.
34-7 (d) The committee shall have the following duties and
34-8 authority:
34-9 (1) power to appoint a full-time staff person with
34-10 clerical support to assist in all duties and responsibilities of
34-11 the commission;
34-12 (2) power to have staff transferred from state
34-13 agencies to assist the committee in the implementation of its
34-14 duties and responsibilities;
34-15 (3) power to require departments to develop transition
34-16 programs and interim operating budgets as necessary for assuring
34-17 orderly transition;
34-18 (4) power to adopt interim rules, regulations, and
34-19 procedures consistent with the intent of this Act and the laws of
34-20 the state.
34-21 (e) This section expires and the committee is abolished
34-22 September 1, 1993.
34-23 SECTION 8.03. MISCELLANEOUS TRANSITION PROVISIONS.
34-24 (a) Effective September 1, 1993, the Texas Commission on Commerce
34-25 and Labor shall serve as the State Board for Vocational Education.
34-26 A reference in a law or rule of this state to the State Board of
34-27 Vocational Education means the Texas Commission on Commerce and
35-1 Labor.
35-2 (b) The chief elected officials of a workforce development
35-3 area may apply for certification of a local workforce development
35-4 board on or after January 1, 1995. Chief elected officials may
35-5 request a waiver to allow them to establish a local workforce
35-6 development board before that date from the Council for Workforce
35-7 Competitiveness.
35-8 (c) To provide some measure of continuity, the chief elected
35-9 officials should consider appointing persons to the local workforce
35-10 development boards who are serving or who have served previously on
35-11 private industry councils, quality workforce planning boards, job
35-12 service employer committees, and other such entities as are
35-13 subsumed under this legislation.
35-14 (d) A local workforce development board established under
35-15 this Act and certified by the governor shall establish local
35-16 workforce development centers not later than the 270th day after
35-17 the board was certified.
35-18 (e) A local workforce development board created under this
35-19 Act is required to contract with the commission for the provision
35-20 of employment service functions that were previously carried out at
35-21 the local level by the Texas Employment Commission. This
35-22 subsection expires January 1, 1998.
35-23 (f) A local workforce development board shall not have
35-24 authority to approve spending for secondary and postsecondary
35-25 vocational and technical education programs until January 1, 1995.
35-26 (g) A local workforce development board shall not have
35-27 authority over funds for adult basic education and literacy
36-1 programs in the area served by the board until January 1, 1995.
36-2 SECTION 8.04. Emergency. The importance of this legislation
36-3 and the crowded condition of the calendars in both houses create an
36-4 emergency and an imperative public necessity that the
36-5 constitutional rule requiring bills to be read on three several
36-6 days in each house be suspended, and this rule is hereby suspended,
36-7 and that this Act take effect and be in force according to its
36-8 terms, and it is so enacted.