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.