1-1  By:  Ellis, et al.                                     S.B. No. 642
    1-2        (In the Senate - Filed March 5, 1993; March 8, 1993, read
    1-3  first time and referred to Committee on Economic Development;
    1-4  April 26, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 10, Nays 0; April 26, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Parker             x                               
   1-10        Lucio              x                               
   1-11        Ellis              x                               
   1-12        Haley              x                               
   1-13        Harris of Dallas   x                               
   1-14        Harris of Tarrant  x                               
   1-15        Leedom             x                               
   1-16        Madla              x                               
   1-17        Rosson             x                               
   1-18        Shapiro                                       x    
   1-19        Wentworth          x                               
   1-20  COMMITTEE SUBSTITUTE FOR S.B. No. 642                    By:  Ellis
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the consolidation of job training, employment, and
   1-24  unemployment insurance programs and the development of an
   1-25  integrated state and local delivery system serving all Texans;
   1-26  merging the Texas Employment Commission into the Texas Commission
   1-27  on Workforce Competitiveness created by this Act.
   1-28        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-29                   ARTICLE 1.  LEGISLATIVE FINDINGS
   1-30        SECTION 1.01.  LEGISLATIVE FINDINGS.  The legislature finds
   1-31  that:
   1-32              (1)  the economic future of this state and the
   1-33  prosperity of its citizens depend on the ability of businesses in
   1-34  this state to compete effectively in the world economy;
   1-35              (2)  a well-educated and highly trained workforce
   1-36  provides businesses in this state with the competitive edge
   1-37  critical for their success;
   1-38              (3)  the state's current workforce development effort
   1-39  is a fragmented array of more than 21 separately funded and
   1-40  administered education, job training, and employment programs
   1-41  operated by seven separate state agencies;
   1-42              (4)  despite the best efforts of professionals and
   1-43  volunteers who struggle every day to make those programs work and
   1-44  serve the needs of their clients, this fragmented approach results
   1-45  in the lack of clear accountability for results, duplication of
   1-46  services, inappropriate training, and wasted resources;
   1-47              (5)  consolidating the various federal and state
   1-48  programs into a single state-local delivery system will improve the
   1-49  quality and effectiveness of services and provide businesses in
   1-50  this state with an element critical to their success, a high
   1-51  quality workforce; and
   1-52              (6)  empowering local business, labor, and community
   1-53  leaders to take a more active role in their communities' economic
   1-54  and workforce development will enhance the quality, efficiency, and
   1-55  responsiveness of these programs.
   1-56        SECTION 1.02.  SHORT TITLE.  Articles 2 through 7 of this Act
   1-57  may be cited as the Workforce and Economic Competitiveness Act.
   1-58        SECTION 1.03.  APPLICATION OF SUNSET ACT.  The Texas
   1-59  Commission on Workforce Competitiveness is subject to Chapter 325,
   1-60  Government Code (Texas Sunset Act).  Unless continued in existence
   1-61  as provided by that chapter, the commission is abolished September
   1-62  1, 2001.
   1-63        SECTION 1.04.  DEFINITIONS.  In this Act:
   1-64              (1)  "Commission" means the Texas Commission on
   1-65  Workforce Competitiveness.
   1-66              (2)  "Human resource investment council" means a human
   1-67  resource investment council under the Job Training Reform
   1-68  Amendments Act of 1992 (Pub. L. No. 102-367, Section 701 et seq.).
    2-1              (3)  "Program year" means July 1 to June 30.
    2-2              (4)  "Workforce development" includes workforce
    2-3  education programs and workforce training and services.
    2-4              (5)  "Workforce education" means articulated
    2-5  career-path programs and the constituent courses of those programs
    2-6  that lead to initial  or continuing licensure or certification or
    2-7  associate degree-level accreditation and that are subject to:
    2-8                    (A)  initial and ongoing state approval or
    2-9  regional or specialized accreditation;
   2-10                    (B)  a formal state evaluation that provides the
   2-11  basis for program continuation or termination;
   2-12                    (C)  state accountability and performance
   2-13  standards; and
   2-14                    (D)  regional or statewide employer-driven labor
   2-15  market demand documentation.
   2-16              (6)  "Workforce training and services" means training
   2-17  and services programs that are not included within the definition
   2-18  of workforce education.
   2-19       ARTICLE 2.  TEXAS COMMISSION ON WORKFORCE COMPETITIVENESS
   2-20        SECTION 2.01.  CREATION OF COMMISSION.  The Texas Commission
   2-21  on Workforce Competitiveness is created.
   2-22        SECTION 2.02.  PURPOSE OF COMMISSION.  The commission is
   2-23  created to consolidate the administration and delivery of federal
   2-24  and state programs for workforce training and services.  The
   2-25  commission is responsible for:
   2-26              (1)  meeting the needs of business in this state for a
   2-27  highly skilled and productive workforce;
   2-28              (2)  meeting the needs of the workers of this state for
   2-29  education, skills training, and labor market information to enhance
   2-30  the workers' employability and standard of living; and
   2-31              (3)  meeting the needs of the taxpayers of this state
   2-32  to ensure that tax dollars are spent effectively and efficiently.
   2-33        SECTION 2.03.  JURISDICTION OF COMMISSION.  (a)  The
   2-34  commission administers the following programs in this state:
   2-35              (1)  the Texas Job-Training Partnership Act (Article
   2-36  4413(52), Vernon's Texas Civil Statutes) and its subsequent
   2-37  amendments;
   2-38              (2)  postsecondary vocational and technical job
   2-39  training programs that are not part of approved courses or programs
   2-40  that lead to licensing, certification, or an associate degree under
   2-41  Chapters 61, 108, 130, and 135, and Subchapter E, Chapter 88,
   2-42  Education Code, and its subsequent amendments;
   2-43              (3)  adult education programs under Section 11.18,
   2-44  Education Code, and its subsequent amendments;
   2-45              (4)  apprenticeship programs under Chapter 33,
   2-46  Education Code, and its subsequent amendments;
   2-47              (5)  the trade adjustment assistance program under Part
   2-48  2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
   2-49  seq.), and its subsequent amendments;
   2-50              (6)  the senior citizens employment program under
   2-51  Chapter 101, Human Resources Code, and its subsequent amendments;
   2-52              (7)  the Texas Unemployment Compensation Act (Article
   2-53  5221b-1 et seq., Vernon's Texas Civil Statutes) and its subsequent
   2-54  amendments;
   2-55              (8)  the Texas child labor law (Article 5181.1,
   2-56  Vernon's Texas Civil Statutes) and its subsequent amendments;
   2-57              (9)  the Texas payday law (Article 5155, Revised
   2-58  Statutes) and its subsequent amendments;
   2-59              (10)  the public information program of the Texas
   2-60  Minimum Wage Act of 1970 (Article 5159d, Vernon's Texas Civil
   2-61  Statutes) and its subsequent amendments;
   2-62              (11)  literacy funds available to the state under the
   2-63  National Literacy Act of 1991 (Pub. L. 102-73 et seq.); and
   2-64              (12)  the National and Community Service Act of 1990
   2-65  (42 U.S.C. Section 12501 et seq.) and its subsequent amendments.
   2-66        (b)  To the extent allowable under federal law, the
   2-67  commission shall administer:
   2-68              (1)  the job opportunities and basic skills program
   2-69  under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section
   2-70  682), and its subsequent amendments; and
    3-1              (2)  the food stamp employment and training program
    3-2  authorized under 7 U.S.C. Section 2015(d) and its subsequent
    3-3  amendments.
    3-4        SECTION 2.04.  COMMISSION MEMBERSHIP.  (a)  The commission is
    3-5  composed of three members:
    3-6              (1)  one of whom shall be a representative of labor;
    3-7              (2)  one of whom shall be a representative of
    3-8  employers; and
    3-9              (3)  one of whom shall be impartial and shall represent
   3-10  the public.
   3-11        (b)  The governor shall appoint the members without regard to
   3-12  the race, creed, sex, disability, religion, or national origin of
   3-13  the appointees.
   3-14        SECTION 2.05.  MEMBER RESTRICTIONS.  (a)  A member of the
   3-15  commission may not engage in any other business, vocation, or
   3-16  employment during the member's term on the commission.
   3-17        (b)  The public member of the commission may not be an
   3-18  officer, employee, or paid consultant of a labor-oriented or
   3-19  employer-oriented trade association while the member serves on the
   3-20  commission.
   3-21        SECTION 2.06.  EFFECT OF LOBBYING ACTIVITY.  A person who is
   3-22  required to register as a lobbyist under Chapter 305, Government
   3-23  Code, may not serve as a member of the commission while registered.
   3-24  If the person ceases to engage in lobbying activity and files a
   3-25  notice of termination as prescribed by Section 305.008, Government
   3-26  Code, and its subsequent amendments, the person may serve as a
   3-27  member of the commission or act as the general counsel to the
   3-28  commission.
   3-29        SECTION 2.07.  TERMS; VACANCY.  (a)  Members of the
   3-30  commission are appointed for staggered six-year terms, with one
   3-31  member's term expiring on February 1 of each odd-numbered year.
   3-32        (b)  A member appointed to fill a vacancy shall hold office
   3-33  for the remainder of that term.
   3-34        SECTION 2.08.  PRESIDING OFFICER.  The member representing
   3-35  the public is the presiding officer of the commission.
   3-36        SECTION 2.09.  REMOVAL OF COMMISSION MEMBERS.  (a)  It is a
   3-37  ground for removal from the commission by impeachment that a
   3-38  member:
   3-39              (1)  during any 60-day period, is absent from each
   3-40  commission meeting for which the member received at least 48 hours'
   3-41  notice;
   3-42              (2)  is unable to discharge the member's duties for the
   3-43  remainder of the term for which the member was appointed because of
   3-44  illness or other disability;
   3-45              (3)  is absent:
   3-46                    (A)  from more than half of the regularly
   3-47  scheduled meetings of the commission that the member is eligible to
   3-48  attend during each calendar year;
   3-49                    (B)  from more than half of the regularly
   3-50  scheduled meetings of the Council on Workforce and Economic
   3-51  Competitiveness that the member is eligible to attend during each
   3-52  calendar year;
   3-53              (4)  violates a prohibition established by Section 2.05
   3-54  or 2.06 of this Act; or
   3-55              (5)  fails to perform any of the duties established by
   3-56  Section 2.10 of this Act.
   3-57        (b)  The validity of an action of the commission is not
   3-58  affected by the fact that it was taken when a ground for the
   3-59  removal of a member of the commission existed.
   3-60        SECTION 2.10.  GENERAL POWERS AND DUTIES.  (a)  The
   3-61  commission shall:
   3-62              (1)  administer all programs and corresponding federal
   3-63  and state legislation consolidated under the commission's authority
   3-64  by this Act;
   3-65              (2)  determine its own organization and methods of
   3-66  procedure in accordance with all applicable state and federal
   3-67  legislation;
   3-68              (3)  promote the adoption of high skill, high
   3-69  performance work organizations in this state;
   3-70              (4)  promote the development and adoption of a
    4-1  business- and industry-driven skills standards and certification
    4-2  system;
    4-3              (5)  implement workforce training and services policies
    4-4  and programs consistent with recommendations from the Council on
    4-5  Workforce and Economic Competitiveness;
    4-6              (6)  implement a statewide system for evaluating the
    4-7  effectiveness of all workforce development programs using the
    4-8  administrative records of the state's unemployment compensation
    4-9  program and other sources as appropriate;
   4-10              (7)  support research and demonstration projects
   4-11  designed to develop new programs and approaches to service
   4-12  delivery;
   4-13              (8)  ensure standardized technical and skill-specific
   4-14  curricula for all vocational and technical programs funded by state
   4-15  and federal funds under the commission's jurisdiction;
   4-16              (9)  serve as an advocate at the state and federal
   4-17  levels for the local workforce development boards;
   4-18              (10)  provide for a comprehensive labor market
   4-19  information system serving employers, students, workers, and state
   4-20  and local planning organizations;
   4-21              (11)  contract with local workforce development boards
   4-22  for program planning and service delivery;
   4-23              (12)  provide training and professional development
   4-24  services for commission staff, council members, and local workforce
   4-25  development boards and their staff;
   4-26              (13)  provide technical assistance and support to local
   4-27  workforce development boards;
   4-28              (14)  appoint an executive director; and
   4-29              (15)  perform other functions and duties as may be
   4-30  required by law or assigned by the governor.
   4-31        (b)  The commission may:
   4-32              (1)  adopt rules, make expenditures, enter into
   4-33  contracts with public, private, and nonprofit organizations,
   4-34  require reports, conduct investigations, and take other action the
   4-35  commission considers necessary or suitable to fulfill the
   4-36  commission's administrative duties; and
   4-37              (2)  delegate to the executive director any power or
   4-38  duty imposed on the commission by law, including the authority to
   4-39  make final orders or decisions, except that the commission may not
   4-40  delegate:
   4-41                    (A)  the power or duty to adopt rules; and
   4-42                    (B)  duties related to the approval and issuance
   4-43  of bonds.
   4-44        (c)  The commission's administrative expenses may not exceed
   4-45  12 percent of the commission's total budget.
   4-46        SECTION 2.11.  TRAINING FOR LOCAL WORKFORCE DEVELOPMENT BOARD
   4-47  MEMBERS.  (a)  The commission shall provide management and board
   4-48  development training for all members of local workforce development
   4-49  boards.  The training shall include information regarding the
   4-50  importance of high quality workforces to the economic prosperity of
   4-51  their communities and encourage board members to be advocates in
   4-52  their communities for effective and efficient workforce development
   4-53  programs.  A member of a workforce development board must receive
   4-54  the training under this section not later than the third month
   4-55  after beginning service on a certified board or the member shall be
   4-56  ineligible to continue serving on the board.
   4-57        (b)  Training may be provided directly by the commission or
   4-58  by a third party that has demonstrated experience in providing
   4-59  training to local workforce development or similar boards.  The
   4-60  quality of training shall be reviewed and appraised periodically by
   4-61  the Council on Workforce and Economic Competitiveness.
   4-62        (c)  Local workforce development boards shall provide 25
   4-63  percent of the costs for all members' management and board
   4-64  development training.
   4-65        SECTION 2.12.  INTEGRATION OF PROGRAMS.  (a)  The commission
   4-66  shall develop a plan for the eventual integration of the
   4-67  administrative functions of the programs under the jurisdiction and
   4-68  authority of the commission.
   4-69        (b)  The plan under Subsection (a) of this section shall
   4-70  specify dates by which integration of the various functions must be
    5-1  completed.  To the extent possible, the plan shall rely on existing
    5-2  state and available federal funds to ensure minimum disruption of
    5-3  services.
    5-4        (c)  The plan under Subsection (a) of this section shall be
    5-5  developed and submitted to the Council on Workforce and Economic
    5-6  Competitiveness not later than January 1, 1995.
    5-7        SECTION 2.13.  EXECUTIVE DIRECTOR.  The executive director of
    5-8  the commission shall:
    5-9              (1)  perform the duties assigned by the commission and
   5-10  state law;
   5-11              (2)  administer the day-to-day operations of the
   5-12  agency;
   5-13              (3)  appoint and prescribe the powers and duties of all
   5-14  officers, accountants, attorneys, experts, and other employees as
   5-15  necessary in the performance of the commission's duties;
   5-16              (4)  delegate authority to persons appointed under this
   5-17  section as the executive director considers reasonable and proper
   5-18  for the effective administration of the commission; and
   5-19              (5)  bond any person that handles money or signs checks
   5-20  for the commission.
   5-21        SECTION 2.14.  PERSONNEL POLICIES.  (a)  The executive
   5-22  director shall develop an intra-agency career ladder program.  The
   5-23  program shall require the intra-agency posting of all
   5-24  nonentry-level positions concurrently with any public posting.
   5-25        (b)  The executive director shall develop a system of annual
   5-26  performance evaluations based on measurable job tasks.  All merit
   5-27  pay for commission employees must be based on the system
   5-28  established under this subsection.
   5-29        SECTION 2.15.  TRAINING; STANDARDS OF CONDUCT INFORMATION.
   5-30  (a)  Each commission member shall comply with the member training
   5-31  requirements established by any other state agency that is given
   5-32  authority to establish the requirements for the commission.
   5-33        (b)  The executive director shall provide to the commission's
   5-34  employees as often as is necessary information regarding their
   5-35  qualifications under this article and their responsibilities under
   5-36  applicable laws relating to standards of conduct for state officers
   5-37  and employees.
   5-38        SECTION 2.16.  EQUAL EMPLOYMENT OPPORTUNITY POLICIES.
   5-39  (a)  The executive director shall  prepare and maintain a written
   5-40  policy statement to ensure implementation of a program of equal
   5-41  employment opportunity under which all personnel transactions are
   5-42  made without regard to race, color, disability, sex, religion, age,
   5-43  or national origin.  The policy statement must include:
   5-44              (1)  personnel policies, including policies relating to
   5-45  recruitment, evaluation, selection, appointment, training, and
   5-46  promotion of personnel that are in compliance with the Commission
   5-47  on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes)
   5-48  and its subsequent amendments;
   5-49              (2)  a comprehensive analysis of the commission's
   5-50  workforce that meets federal and state guidelines;
   5-51              (3)  procedures by which a determination can be made of
   5-52  significant underuse in the commission's workforce of all persons
   5-53  for whom federal or state guidelines encourage a more equitable
   5-54  balance; and
   5-55              (4)  reasonable methods to appropriately address those
   5-56  areas of underuse.
   5-57        (b)  A policy statement under Subsection (a) of this section
   5-58  must cover an annual period, be updated annually, be reviewed by
   5-59  the Commission on Human Rights for compliance with Subsection
   5-60  (a)(1) of this section, and be filed with the governor's office.
   5-61        (c)  The governor's office shall deliver a biennial report to
   5-62  the legislature based on the information received under Subsection
   5-63  (b) of this section.  The report may be made separately or as part
   5-64  of other biennial reports to the legislature.
   5-65        SECTION 2.17.  JOB PLACEMENT INFORMATION.  (a)  The
   5-66  commission in cooperation with the Texas Higher Education
   5-67  Coordinating Board shall establish and maintain an automated
   5-68  student and adult learner follow-up system in conjunction with a
   5-69  statewide job placement information system that uses the
   5-70  unemployment insurance wage record tracking system maintained by
    6-1  the commission.  The system shall be used to assist the commission,
    6-2  local workforce development boards, institution boards, the Texas
    6-3  Higher Education Coordinating Board, and other agencies in
    6-4  evaluating the labor market success and effectiveness of workforce
    6-5  development programs in this state.
    6-6        (b)  Evaluation data included in the system under this
    6-7  section shall include placement rates, wages paid, retention in
    6-8  employment statistics, and the number of placements made that are
    6-9  directly related to a job training program under this Act and other
   6-10  factors, including pursuit of additional education.
   6-11        (c)  The commission may develop a method for collecting job
   6-12  classification information to supplement data collected through the
   6-13  unemployment insurance data collection system.  The commission may
   6-14  request employers, providers, and other appropriate sources to
   6-15  provide employment and placement information to the commission.
   6-16        (d)  At least annually, the commission shall issue an
   6-17  occupation-specific analysis by provider of the job placement
   6-18  performance of each workforce education program for the previous
   6-19  one-year, three-year, and five-year periods to:
   6-20              (1)  each provider of a workforce education program or
   6-21  workforce training and services program;
   6-22              (2)  the Texas Higher Education Coordinating Board for
   6-23  each provider of a workforce education program approved and
   6-24  administered by the board; and
   6-25              (3)  each local workforce development board for each
   6-26  provider of workforce training and services within the workforce
   6-27  development area.
   6-28        (e)  The Texas Higher Education Coordinating Board shall use
   6-29  the job placement information received under this section and other
   6-30  information to:
   6-31              (1)  evaluate the effectiveness of workforce education
   6-32  programs;
   6-33              (2)  determine whether a public or private workforce
   6-34  education program is not effective in placing persons who
   6-35  successfully complete the program in jobs related to the persons'
   6-36  training; and
   6-37              (3)  determine whether to continue, expand, or
   6-38  terminate a program established under Section 61.051, Education
   6-39  Code, and its subsequent amendments.
   6-40        (f)  Each local workforce development board shall use the
   6-41  information under this section and other information to determine
   6-42  whether a specific workforce training and service program
   6-43  administered by the local board is effective and whether to
   6-44  continue or discontinue the training and service program.
   6-45     ARTICLE 3.  COUNCIL ON WORKFORCE AND ECONOMIC COMPETITIVENESS
   6-46        SECTION 3.01.  CREATION OF COUNCIL.  (a)  The Council on
   6-47  Workforce and Economic Competitiveness is created as a state agency
   6-48  to act as a human resources investment council.
   6-49        (b)  In this article, "council" means the Council on
   6-50  Workforce and Economic Competitiveness.
   6-51        SECTION 3.02.  MEMBERSHIP OF COUNCIL.  (a)  The council shall
   6-52  be appointed by the governor, who shall designate one of the
   6-53  business representatives on the council to serve as presiding
   6-54  officer.  The membership shall reflect the ethnic and geographic
   6-55  diversity of the state.
   6-56        (b)  The council shall be composed of:
   6-57              (1)  the following ex officio voting members:
   6-58                    (A)  the commissioner of education;
   6-59                    (B)  the commissioner of higher education;
   6-60                    (C)  the commissioner of health and human
   6-61  services;
   6-62                    (D)  the executive director of the Texas
   6-63  Department of Commerce; and
   6-64                    (E)  the executive director of the Texas
   6-65  Commission on Workforce Competitiveness;
   6-66              (2)  five voting members appointed by the governor who
   6-67  represent education, at least one of whom represents local public
   6-68  education, one of whom represents public postsecondary education,
   6-69  and one of whom represents secondary or postsecondary vocational
   6-70  education;
    7-1              (3)  seven voting members who represent organized labor
    7-2  appointed by the governor based on recommendations made by
    7-3  recognized labor organizations;
    7-4              (4)  seven voting members appointed by the governor who
    7-5  represent business and industry on local workforce development
    7-6  boards;
    7-7              (5)  one voting member appointed by the governor who
    7-8  represents a community-based organization;
    7-9              (6)  one voting member appointed by the governor who
   7-10  represents a joint sponsored apprenticeship program as defined by
   7-11  the United States Department of Labor's Bureau of Apprenticeship
   7-12  and Training appointed from a list of three nominees submitted to
   7-13  the governor by the Apprenticeship and Training Association of
   7-14  Texas;
   7-15              (7)  one voting member appointed by the governor who
   7-16  represents a community-based adult literacy organization;
   7-17              (8)  one voting member appointed by the governor who
   7-18  represents adult basic and continuing education programs;
   7-19              (9)  four voting members appointed by the governor each
   7-20  of whom represent not more than one of the following categories:
   7-21                    (A)  literacy groups;
   7-22                    (B)  local welfare or public housing agencies;
   7-23                    (C)  units of local government;
   7-24                    (D)  adult education organizations;
   7-25                    (E)  teachers or counselors;
   7-26                    (F)  local service delivery organizations;
   7-27                    (G)  special needs populations;
   7-28                    (H)  rural and agricultural organizations;
   7-29                    (I)  proprietary schools;
   7-30                    (J)  members of the state legislature; and
   7-31                    (K)  other groups and organizations; and
   7-32              (10)  the following ex officio nonvoting members:
   7-33                    (A)  the chair of the State Board of Education;
   7-34                    (B)  the chair of the Texas Higher Education
   7-35  Coordinating Board;
   7-36                    (C)  the presiding officer of the Texas Board of
   7-37  Human Services;
   7-38                    (D)  the presiding officer of the governing board
   7-39  of the Texas Department of Commerce;
   7-40                    (E)  the chair of the Texas Commission on
   7-41  Workforce Competitiveness;
   7-42                    (F)  the commissioner of the Texas Rehabilitation
   7-43  Commission; and
   7-44                    (G)  the executive director of the Texas
   7-45  Commission for the Blind.
   7-46        (c)  The presiding officer of the council shall designate a
   7-47  member of the council as assistant presiding officer to preside in
   7-48  the absence of the presiding officer.
   7-49        SECTION 3.03.  MEETINGS; TERMS.   (a)  The council shall meet
   7-50  at least quarterly and at other times at the call of the presiding
   7-51  officer or as provided by rules adopted by the council.
   7-52        (b)  A member of the council who does not serve as an ex
   7-53  officio member serves a six-year term, with one-third of those
   7-54  members' terms expiring in each odd-numbered year.  An ex officio
   7-55  member shall continue to serve as a member of the council as long
   7-56  as the member continues to serve in the designated office.
   7-57        SECTION 3.04.  DESIGNATED REPLACEMENTS.  A member of the
   7-58  council may designate another person to attend a meeting for the
   7-59  member.  The designated person may participate in the activities
   7-60  and discussions of the council but may not vote.
   7-61        SECTION 3.05.  GROUNDS FOR REMOVAL FROM COUNCIL.  (a)  It is
   7-62  a ground for removal from the council if a non-ex officio member:
   7-63              (1)  does not have at the time of appointment the
   7-64  qualifications required by Section 3.02 of this Act;
   7-65              (2)  does not maintain during service on the council
   7-66  the qualifications required by Section 3.02 of this Act;
   7-67              (3)  violates a prohibition established by Section 3.06
   7-68  of this Act;
   7-69              (4)  cannot discharge the member's duties for a
   7-70  substantial part of the term for which the member is appointed
    8-1  because of illness or disability; or
    8-2              (5)  is absent from more than half of the regularly
    8-3  scheduled council meetings that the member is eligible to attend
    8-4  during a calendar year unless the absence is excused by a majority
    8-5  vote of the council.
    8-6        (b)  The validity of an action of the council is not affected
    8-7  by the fact that it is taken when a ground for removal of a council
    8-8  member exists.
    8-9        (c)  If the executive director has knowledge that a potential
   8-10  ground for removal exists, the executive director shall notify the
   8-11  presiding officer of the council of the ground.  The presiding
   8-12  officer shall then notify the governor that a potential ground for
   8-13  removal exists.
   8-14        SECTION 3.06.  EFFECT OF LOBBYING ACTIVITY.  (a)  A person
   8-15  may not serve as a member of the council or act as the general
   8-16  counsel to the council if the person is required to register as a
   8-17  lobbyist under Chapter 305, Government Code, and its subsequent
   8-18  amendments.
   8-19        (b)  If the person required to register as a lobbyist under
   8-20  Subsection (a) of this section files a notice of termination as
   8-21  provided by Section 305.008, Government Code, and its subsequent
   8-22  amendments, the person may serve as a member of the council or act
   8-23  as general counsel to the council.
   8-24        SECTION 3.07.  COUNCIL FUNCTIONS.  (a)  The council shall:
   8-25              (1)  promote the development of a well-educated, highly
   8-26  skilled workforce in this state through literacy, adult basic
   8-27  education, community education, and state-of-the-art occupational
   8-28  skills education and training programs;
   8-29              (2)  serve as an advocate for the development of an
   8-30  integrated workforce development system to provide quality services
   8-31  addressing the needs of business and workers in this state;
   8-32              (3)  recommend to the governor an approach for
   8-33  fostering the development of a business-driven and industry-driven
   8-34  skills standards and certification system for occupations requiring
   8-35  less than a baccalaureate-level education and training;
   8-36              (4)  promote the development of high productivity
   8-37  workplaces in this state;
   8-38              (5)  recommend to the governor the components of a
   8-39  school and training-to-work transition process;
   8-40              (6)  develop and recommend to the governor a plan to
   8-41  ensure client accessibility to workforce programs that includes a
   8-42  uniform statewide client application system for determining an
   8-43  applicant's eligibility for a workforce program for which state or
   8-44  federal financial assistance is available;
   8-45              (7)  recommend to the governor the designation of
   8-46  workforce development areas for the local planning and delivery of
   8-47  workforce development programs;
   8-48              (8)  develop and recommend to the governor, in concert
   8-49  with the Texas Department of Commerce, a strategic plan for the
   8-50  state's economic and workforce development effort;
   8-51              (9)  design and implement a state-local planning
   8-52  process for developing goals, objectives, and performance standards
   8-53  for the state's workforce training and services programs;
   8-54              (10)  recommend to the governor the goals, objectives,
   8-55  and performance standards to guide and evaluate the workforce
   8-56  development programs of all agencies represented on the council;
   8-57              (11)  review local workforce development plans and make
   8-58  recommendations to the governor for approval;
   8-59              (12)  recommend to the governor new programs and
   8-60  delivery systems to improve the efficiency and effectiveness of the
   8-61  state's workforce development initiatives;
   8-62              (13)  review the state's education, workforce
   8-63  development, and human services programs and systems and make
   8-64  recommendations to the governor regarding opportunities for
   8-65  coordination that would improve the quality of services with
   8-66  immediate attention to standardizing intake, eligibility,
   8-67  assessment, case management, and referral for participants in
   8-68  workforce development programs;
   8-69              (14)  monitor and evaluate the operation and results of
   8-70  the state's workforce development programs to assess the degree to
    9-1  which the programs are effective in achieving state and local
    9-2  goals; and
    9-3              (15)  carry out the federal and state mandated duties
    9-4  and responsibilities for all advisory councils under applicable
    9-5  federal and state workforce development programs that are
    9-6  consolidated under the commission.
    9-7        (b)  The council shall assume the duty to:
    9-8              (1)  develop, with the assistance of the appropriate
    9-9  state agencies, and recommend to the governor state plans required
   9-10  by applicable federal laws in order for the state to receive
   9-11  federal funds;
   9-12              (2)  make policy recommendations to the governor
   9-13  regarding goals and priorities for both formula and discretionary
   9-14  funds for all applicable programs;
   9-15              (3)  participate directly in the development of the
   9-16  master plan for vocational education, as required by law, and
   9-17  recommend the plan to the State Board of Education, the Texas
   9-18  Higher Education Coordinating Board, and the governor;
   9-19              (4)  ensure that general revenue funds previously
   9-20  available to the Texas Literacy Council are used to support the
   9-21  efforts of local literacy councils in a manner consistent with the
   9-22  state strategic plan;
   9-23              (5)  recommend to the State Board of Vocational
   9-24  Education the division of federal funds between secondary and
   9-25  postsecondary educational agencies under the Carl D. Perkins
   9-26  Vocational and Applied Technology Education Act (20 U.S.C. Section
   9-27  2301 et seq.) and its subsequent amendments; and
   9-28              (6)  make recommendations as appropriate to the
   9-29  commission and its members regarding unemployment insurance issues
   9-30  pertinent to the work of the council.
   9-31        (c)  In addition to the council's powers and duties under
   9-32  Subsections (a) and (b) of this section, the council may:
   9-33              (1)  adopt rules necessary and essential to the
   9-34  internal functions and duties of the council but not rules related
   9-35  to the operation of a workforce development program;
   9-36              (2)  make expenditures, enter into contracts with
   9-37  public, private, and non-profit organizations or agencies, require
   9-38  reports to be made, conduct investigations, and take other actions
   9-39  necessary or suitable to fulfill the council's duties under this
   9-40  Act;
   9-41              (3)  delegate to the executive director any power or
   9-42  duty imposed on the council by law, including the authority to make
   9-43  a final order or decision but not including the authority to adopt
   9-44  rules;
   9-45              (4)  provide for the mediation or arbitration of
   9-46  disputes between agencies that perform functions for federal
   9-47  programs as provided by this Act;
   9-48              (5)  accept gifts, grants, and donations of money,
   9-49  goods, or services to be used only to accomplish the council's
   9-50  duties under this Act; and
   9-51              (6)  share employees with another state agency.
   9-52        SECTION 3.08.  SUBCOMMITTEES; TECHNICAL ADVISORY COMMITTEES.
   9-53  (a)  The presiding officer of the council may appoint subcommittees
   9-54  consisting of members of the council for any purpose consistent
   9-55  with the duties and responsibilities of the council under this Act.
   9-56        (b)  The presiding officer of the council may appoint
   9-57  technical advisory committees composed of council members or
   9-58  persons who are not council members, or both members and
   9-59  non-members.
   9-60        SECTION 3.09.  TRANSFER OF STATE ADVISORY COUNCIL
   9-61  RESPONSIBILITIES.  (a)  The council shall assume the
   9-62  responsibilities assigned to the state advisory council under the
   9-63  following federal laws:
   9-64              (1)  the Job Training Partnership Act (29 U.S.C.
   9-65  Section 1501 et seq.) and its subsequent amendments;
   9-66              (2)  the Carl D. Perkins Vocational and Applied
   9-67  Technology Education Act (20 U.S.C. Section 2301 et seq.) and its
   9-68  subsequent amendments;
   9-69              (3)  the National and Community Service Act of 1990 (42
   9-70  U.S.C. Section 12501 et seq.) and its subsequent amendments;
   10-1              (4)  the Adult Education Act (20 U.S.C. Section 1201 et
   10-2  seq.) and its subsequent amendments;
   10-3              (5)  the Wagner-Peyser Act (29 U.S.C. Section 49 et
   10-4  seq.) and its subsequent amendments;
   10-5              (6)  Part F, Subchapter IV, Social Security Act (42
   10-6  U.S.C. Section 681 et seq.), and its subsequent amendments;
   10-7              (7)  the employment program established under Section
   10-8  6(d)(4), Food Stamp Act of 1977 (7 U.S.C. Section 2015(d)(4)), and
   10-9  its subsequent amendments; and
  10-10              (8)  the National Literacy Act of 1991 (Pub. L. 102-73
  10-11  et seq.) and its subsequent amendments.
  10-12        (b)  The council shall assume the responsibilities formerly
  10-13  exercised by the following state advisory councils:
  10-14              (1)  the State Job Training Coordinating Council;
  10-15              (2)  the Texas Council on Vocational Education;
  10-16              (3)  the technical advisory committee to the State
  10-17  Occupational Information Coordinating Council;
  10-18              (4)  the Texas Literacy Council; and
  10-19              (5)  the Apprenticeship and Training Advisory
  10-20  Committee.
  10-21        SECTION 3.10.  FISCAL AGENT.  The council may designate
  10-22  another state agency to serve as the council's fiscal agent if the
  10-23  designated agent agrees to the designation.
  10-24        SECTION 3.11.  EXECUTIVE DIRECTOR; COUNCIL STAFF.  (a)  The
  10-25  presiding officer of the council shall appoint an executive
  10-26  director for the council.
  10-27        (b)  The executive director shall:
  10-28              (1)  report to the presiding officer of the council;
  10-29              (2)  perform duties assigned by the council and under
  10-30  state law;
  10-31              (3)  administer the day-to-day operations of the
  10-32  council;
  10-33              (4)  appoint officers, accountants, attorneys, experts,
  10-34  and other employees for the council and assign duties for these
  10-35  employees as necessary in the performance of the council's powers
  10-36  and duties under this Act;
  10-37              (5)  delegate authority to persons appointed under this
  10-38  section as the executive director considers to be reasonable and
  10-39  proper for the effective administration of the council; and
  10-40              (6)  perform other duties assigned by this Act.
  10-41        (c)  The executive director may adopt the administrative and
  10-42  personnel procedures of the council's fiscal agent rather than
  10-43  adopting new procedures for the council.
  10-44        (d)  The council shall have an independent staff with
  10-45  sufficient expertise to perform all duties and responsibilities
  10-46  assigned to the council under this Act and under state and federal
  10-47  law.  The staff of the council may be supplemented by staff from
  10-48  other state agencies who are temporarily assigned to assist with
  10-49  special projects.
  10-50        (e)  The executive director of the State Occupational
  10-51  Information Coordinating Council shall report to the executive
  10-52  director of the council and shall provide labor market information,
  10-53  information relevant to workforce program evaluation, and staff
  10-54  technical assistance to the council and its staff as necessary.
  10-55  The executive director of the State Occupational Information
  10-56  Coordinating Council may enter into contracts for products and
  10-57  services with State Occupational Information Coordinating Council
  10-58  membership agencies and other organizations if consistent with the
  10-59  state strategic plan.
  10-60        SECTION 3.12.  PERSONNEL POLICIES.  (a)  The executive
  10-61  director of the council shall develop an intra-agency career ladder
  10-62  program.  The program shall require the intra-agency posting of all
  10-63  nonentry-level positions concurrently with any public posting.
  10-64        (b)  The executive director shall develop a system of annual
  10-65  performance evaluations based on measurable job tasks.  All merit
  10-66  pay for council employees must be based on the system established
  10-67  under this subsection.
  10-68        SECTION 3.13.  TRAINING; STANDARDS OF CONDUCT INFORMATION.
  10-69  (a)  Each council member shall comply with the member training
  10-70  requirements established by any other state agency that is given
   11-1  authority to establish the requirements for the council.
   11-2        (b)  The executive director shall provide to the council's
   11-3  members and employees, as often as necessary, information regarding
   11-4  their qualifications for office or employment under this Act and
   11-5  their responsibilities under applicable laws relating to standards
   11-6  of conduct for state officers and employees.
   11-7        SECTION 3.14.  EQUAL EMPLOYMENT OPPORTUNITY POLICIES.
   11-8  (a)  The executive director shall prepare and maintain a written
   11-9  policy statement to assure implementation of a program of equal
  11-10  employment opportunity under which all personnel transactions are
  11-11  made without regard to race, color, disability, sex, religion, age,
  11-12  or national origin.  The policy statement must include:
  11-13              (1)  personnel policies, including policies relating to
  11-14  recruitment, evaluation, selection, application, training, and
  11-15  promotion of personnel that are in compliance with the Commission
  11-16  on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes)
  11-17  and its subsequent amendments;
  11-18              (2)  a comprehensive analysis of the council's
  11-19  workforce that meets federal and state guidelines;
  11-20              (3)  procedures by which a determination can be made of
  11-21  significant underuse in the council's workforce of all persons for
  11-22  whom federal or state guidelines encourage a more equitable
  11-23  balance; and
  11-24              (4)  reasonable methods to appropriately address those
  11-25  areas of underuse.
  11-26        (b)  A policy statement under Subsection (a) of this section
  11-27  must cover an annual period, be updated annually, be reviewed by
  11-28  the Commission on Human Rights for compliance with Subsection
  11-29  (a)(1) of this section, and be filed with the governor's office.
  11-30        (c)  The governor's office shall deliver a biennial report to
  11-31  the legislature based on the information received under Subsection
  11-32  (b) of this section.  The report may be made separately or as part
  11-33  of other biennial reports to the legislature.
  11-34        SECTION 3.15.  COUNCIL RECOMMENDATIONS; COOPERATION WITH
  11-35  STATE AGENCIES.  (a)  The council shall develop recommendations
  11-36  periodically in each of the council's areas of responsibility and
  11-37  shall submit the recommendations to the governor.
  11-38        (b)  The governor shall consider the recommendations
  11-39  submitted under this section.  The governor shall approve,
  11-40  disapprove, or modify the recommendations and return the
  11-41  recommendations to the council to be forwarded as appropriate or
  11-42  forward an approved or modified recommendation without returning
  11-43  the recommendation to the council.  An approved or modified
  11-44  recommendation shall be forwarded to the appropriate agency for
  11-45  implementation.  A recommendation that is approved or modified that
  11-46  requires a change in state or federal law shall be forwarded to the
  11-47  appropriate legislative body for consideration.
  11-48        (c)  A recommendation that is not approved, disapproved, or
  11-49  modified by the governor before the 90th day after the date the
  11-50  recommendation is submitted shall be considered to be approved by
  11-51  the governor.
  11-52        (d)  State agencies that are responsible for the
  11-53  administration of human resources and workforce development
  11-54  programs in this state shall implement the recommendations to the
  11-55  extent possible.
  11-56        (e)  A state agency shall:
  11-57              (1)  provide requested information to the council in a
  11-58  timely manner;
  11-59              (2)  report on the implementation of the council's
  11-60  recommendations at the time and in the format requested by the
  11-61  council; and
  11-62              (3)  notify the governor, the executive director, and
  11-63  the presiding officer of the council if the agency determines that
  11-64  a recommendation cannot be implemented.
  11-65        (f)  A recommendation approved by the governor with regard to
  11-66  the state or federal Job Training Partnership Act (29) U.S.C.
  11-67  Section 1501 et seq.) shall be implemented by the agency
  11-68  responsible for the administration of that Act as required by
  11-69  federal law.
  11-70        SECTION 3.16.  STRATEGIC PLAN.  (a)  In addition to the other
   12-1  requirements of this Act, the strategic plan recommended by the
   12-2  council shall recognize and address literacy and basic education as
   12-3  activities that are critical to the well-being of individuals and
   12-4  the state without regard to whether the training and education is
   12-5  directed at preparing an individual for employment.
   12-6        (b)  The strategic plan shall include goals, objectives, and
   12-7  performance measures for all economic and workforce development
   12-8  programs that are represented on the council.
   12-9        (c)  On approval of the plan by the governor, an agency
  12-10  represented on the council shall use the strategic plan to develop
  12-11  the agency's operational plan.
  12-12        SECTION 3.17.  FUNDING.  (a)  Federal funding for the
  12-13  operation of the council shall be allocated according to federal
  12-14  requirements.
  12-15        (b)  A state agency represented on the council shall provide
  12-16  funds for the support of the council in proportion to the agency's
  12-17  financial participation in the workforce development system.  The
  12-18  legislature shall appropriate funds to the council on the basis of
  12-19  this subsection.
  12-20        ARTICLE 4.  DESIGNATION OF WORKFORCE DEVELOPMENT AREAS
  12-21        SECTION 4.01.  DESIGNATION OF WORKFORCE DEVELOPMENT AREAS.
  12-22  (a)  The governor shall, after receiving the recommendations of the
  12-23  Council on Workforce and Economic Competitiveness, publish a
  12-24  proposed designation of local workforce development areas for the
  12-25  planning and delivery of workforce development services, each of
  12-26  which:
  12-27              (1)  is composed of more than one contiguous unit of
  12-28  general local government, that includes at least one county;
  12-29              (2)  is consistent with either a local labor market
  12-30  area, a metropolitan statistical area, one of the 24 substate
  12-31  planning areas, or one of the 10 uniform state service regions; and
  12-32              (3)  is of sufficient size to have the administrative
  12-33  resources necessary to provide for the effective planning,
  12-34  management, and delivery of workforce development services.
  12-35        (b)  Units of general local government, business and labor
  12-36  organizations, and other affected persons and organizations shall
  12-37  have an opportunity to comment on the proposed designation of a
  12-38  workforce development area and to request revisions of the
  12-39  designation.
  12-40        (c)  The governor, after considering all comments and
  12-41  requests for changes, shall make the final designation of workforce
  12-42  development areas.  The governor may redesignate workforce
  12-43  development areas not more than once every two years.  A
  12-44  redesignation must be made not later than four months before the
  12-45  beginning of a program year.
  12-46            ARTICLE 5.  LOCAL WORKFORCE DEVELOPMENT BOARDS
  12-47        SECTION 5.01.  CREATION OF LOCAL WORKFORCE DEVELOPMENT
  12-48  BOARDS.  (a)  The chief elected officials in a workforce
  12-49  development area designated by the governor under Section 4.01 of
  12-50  this Act may form, in accordance with rules established by the
  12-51  commission, a local workforce development board to plan and oversee
  12-52  the delivery of all workforce training and services programs and
  12-53  evaluate all workforce development programs in the workforce
  12-54  development  area.
  12-55        (b)  On agreement regarding the formation of a local
  12-56  workforce development board, the chief elected officials shall
  12-57  reduce the agreement to writing.  The local government agreement
  12-58  shall include:
  12-59              (1)  the purpose for the agreement;
  12-60              (2)  the process that will be used to select the chief
  12-61  elected official who will act on behalf of the other chief elected
  12-62  officials;
  12-63              (3)  the initial size of the local workforce
  12-64  development board;
  12-65              (4)  the process to be used to appoint the board
  12-66  members, which must be consistent with applicable federal and state
  12-67  laws; and
  12-68              (5)  the terms of office of the members of the board.
  12-69        (c)  The chief elected officials shall consider the views of
  12-70  all affected local organizations, including private industry
   13-1  councils and quality workforce planning committees, before making a
   13-2  final decision regarding the formation of a local workforce
   13-3  development board.
   13-4        (d)  None of the powers and duties granted a workforce
   13-5  development board under this Act may be exercised in a workforce
   13-6  development area until the chief elected officials in that area
   13-7  reach an agreement providing for the establishment of a local
   13-8  workforce development board and the board is certified by the
   13-9  governor.
  13-10        (e)  A private industry council in an area in which a local
  13-11  workforce development board is not created or in which the chief
  13-12  elective officers are unable to negotiate the establishment of a
  13-13  local workforce development board may not exercise any of the
  13-14  powers granted a local workforce development board by this Act.
  13-15        SECTION 5.02.  LOCAL BOARD MEMBERSHIP.  (a)  A local
  13-16  workforce development board is appointed by the chief elected
  13-17  officials consistent with the local government agreement and
  13-18  applicable federal and state laws.  Board members serve fixed and
  13-19  staggered terms as provided by the agreement or applicable federal
  13-20  or state laws and may continue to serve until successors are
  13-21  appointed.  Board membership shall reflect the ethnic and
  13-22  geographic diversity of the workforce development area.  A board is
  13-23  composed as follows:
  13-24              (1)  representatives of the private sector, who shall
  13-25  constitute a majority of the membership of the board and who are
  13-26  owners of business concerns, chief executives or chief operating
  13-27  officers of nongovernmental employers, or other private sector
  13-28  executives who have substantial management or policy
  13-29  responsibilities;
  13-30              (2)  representatives of organized labor and
  13-31  community-based organizations, who shall constitute not less than
  13-32  15 percent of the membership of the board; and
  13-33              (3)  representatives of each of the following:
  13-34                    (A)  educational agencies, including secondary
  13-35  and postsecondary practitioners representing vocational education,
  13-36  that are representative of all educational agencies in the service
  13-37  delivery area;
  13-38                    (B)  vocational rehabilitation agencies;
  13-39                    (C)  public assistance agencies;
  13-40                    (D)  economic development agencies;
  13-41                    (E)  the public employment service;
  13-42                    (F)  local literacy councils; and
  13-43                    (G)  adult basic and continuing education
  13-44  organizations.
  13-45        (b)  The chairman of the board shall be selected from among
  13-46  the members of the board who represent the private sector.
  13-47        (c)  Private sector representatives on the board shall be
  13-48  selected from among individuals nominated by general-purpose
  13-49  business organizations after consulting with and receiving
  13-50  recommendations from other business organizations in the workforce
  13-51  development area.  The number of the  nominations shall be at least
  13-52  150 percent of the number of individuals to be appointed under
  13-53  Subsection (a)(1) of this section.  The nominations and the
  13-54  individuals selected from the nominations must reasonably represent
  13-55  the industrial and demographic composition of the business
  13-56  community.  If  possible, at least one-half of the business and
  13-57  industry representatives shall be representatives of small
  13-58  business, including minority business.
  13-59        (d)  In this section:
  13-60              (1)  "general purpose business organization" means an
  13-61  organization that admits to membership any for-profit business
  13-62  operating within the workforce development area; and
  13-63              (2)  "small business" means a private for-profit
  13-64  enterprise employing not more than 500 employees.
  13-65        (e)  The education representatives on the board shall be
  13-66  selected from among individuals nominated by regional or local
  13-67  educational agencies, vocational education institutions,
  13-68  institutions of higher education, including entities offering adult
  13-69  education, and general organizations of the institutions  within
  13-70  the workforce development area.
   14-1        (f)  The labor representatives on the board shall be selected
   14-2  from individuals recommended by recognized state and local labor
   14-3  federations.  If  a state or local labor federation fails to
   14-4  nominate a sufficient number of individuals to meet the labor
   14-5  representation requirements of Subsection (a)(2) of this section,
   14-6  individual workers may be included on the council to complete the
   14-7  labor representation.
   14-8        (g)  The remaining members of the board shall be selected
   14-9  from individuals recommended by interested organizations.
  14-10        (h)  The board may create committees as needed to carry out
  14-11  its duties and responsibilities.  The board may create technical
  14-12  advisory groups composed of both council and noncouncil members to
  14-13  provide assistance as needed.
  14-14        (i)  Members of the board shall avoid the appearance of
  14-15  conflict of interest by recusing themselves on votes of the board
  14-16  directly affecting the funding of their organization or any
  14-17  organization that they represent.
  14-18        SECTION 5.03.  CERTIFICATION OF BOARD.  The governor shall
  14-19  certify a local workforce development board if the governor
  14-20  determines that the board's composition and appointments are
  14-21  consistent with applicable federal and state laws and requirements.
  14-22  Certification shall be made or denied not later than the 30th day
  14-23  after the date a certification request is submitted to the
  14-24  governor.  None of the powers and duties granted a board under this
  14-25  Act shall be exercised in  a workforce development area until the
  14-26  board is certified by the governor.
  14-27        SECTION 5.04.  FUNCTIONS OF BOARD.  (a)  A board is directly
  14-28  responsible and accountable to the commission for the planning and
  14-29  delivery of workforce training and services in the workforce
  14-30  development area. A workforce development board shall insure
  14-31  effective outcomes as evidenced by performance measures and other
  14-32  quality control and evaluation measures implemented by the board.
  14-33  The commission shall assist workforce development boards in
  14-34  designing effective measures to accomplish this responsibility.
  14-35        (b)  A board shall:
  14-36              (1)  serve as a single point of contact for local
  14-37  business to communicate their skill needs and influence the
  14-38  direction of workforce education and training programs in the
  14-39  workforce development area;
  14-40              (2)  develop a local plan for addressing the workforce
  14-41  development needs of the workforce development area that:
  14-42                    (A)  is responsive to the goals, objectives, and
  14-43  performance standards established by the governor;
  14-44                    (B)  targets services to meet local needs,
  14-45  including the identification of industries and employers likely to
  14-46  employ workers who complete job training programs; and
  14-47                    (C)  ensures that the workforce development
  14-48  system, including the educational system, has the flexibility to
  14-49  meet the needs of local businesses;
  14-50              (3)  designate the board or some other entity as the
  14-51  board's fiscal agent to be responsible and accountable for the
  14-52  management of all workforce development funds available to the
  14-53  board;
  14-54              (4)  create local workforce development centers as
  14-55  established in Article 6 of this Act;
  14-56              (5)  review plans for workforce education to ensure
  14-57  that the plans address the needs of local businesses;
  14-58              (6)  assume the functions and responsibilities of local
  14-59  workforce development advisory boards and councils authorized by
  14-60  federal or state laws, including private industry councils, quality
  14-61  workforce planning committees, job service employer committees, and
  14-62  local vocational program advisory committees as appropriate;
  14-63              (7)  monitor and evaluate the effectiveness of the
  14-64  workforce development centers, other contractors providing
  14-65  workforce development services for the board, and vocational and
  14-66  technical education programs operated by local education agencies
  14-67  and institutions of higher education;
  14-68              (8)  have the authority to increase or decrease the
  14-69  size of the board's membership consistent with applicable federal
  14-70  laws;
   15-1              (9)  promote cooperation and coordination among public
   15-2  organizations, community organizations, and private business
   15-3  providing workforce development services; and
   15-4              (10)  review applications as consistent with rules
   15-5  developed by the Texas Department of Commerce for funds under the
   15-6  smart jobs fund program under Subchapter J, Chapter 481, Government
   15-7  Code.  The board may provide relevant labor market information and
   15-8  information regarding the availability of existing workforce
   15-9  development programs to the department.
  15-10        SECTION 5.05.  EMPLOYER-DRIVEN NEEDS ASSESSMENT.  (a)  A
  15-11  board shall establish and operate an automated, interactive
  15-12  employer-driven labor market information system to identify
  15-13  occupation-specific labor demand in each workforce development
  15-14  area.
  15-15        (b)  A board shall periodically provide a report summarizing
  15-16  occupation-specific labor demand to each public postsecondary
  15-17  institution providing vocational and technical education in a
  15-18  workforce development area.
  15-19        (c)  If a need is identified in the availability of workforce
  15-20  education as indicated by the labor market information system
  15-21  provided by the board, by a direct request of employers located in
  15-22  the workforce area, or as the result of an economic development
  15-23  incentive package designed to attract or retain an employer, the
  15-24  institution shall apply within 30 days to the Texas Higher
  15-25  Education Coordinating Board for approval to offer the needed
  15-26  workforce education.  The coordinating board shall give immediate
  15-27  priority to the institution's application and shall notify the
  15-28  institution of the board's approval or disapproval not later than
  15-29  the 100th day after the date the application is received.
  15-30        (d)  If more than one institution in a workforce development
  15-31  area applies under Subsection (c) of this section to provide the
  15-32  needed workforce education, the Texas Higher Education Coordinating
  15-33  Board shall select one or more institutions to offer the needed
  15-34  education as provided by Section 61.051, Education Code, and its
  15-35  subsequent amendments.
  15-36        (e)  A local workforce development board may solicit other
  15-37  qualified providers to apply to the coordinating board to provide
  15-38  needed education to be funded through state-appropriated formula
  15-39  funds if an institution approved by the Texas Higher Education
  15-40  Coordinating Board does not offer the approved workforce education
  15-41  in a timely manner.
  15-42        (f)  A public community college shall promptly provide
  15-43  workforce training and services that are requested:
  15-44              (1)  by the workforce development board based on the
  15-45  board's labor demand information system for the area;
  15-46              (2)  by employers located in the college's taxing
  15-47  district when the request is presented directly to the college by
  15-48  the employers or through the workforce development board; or
  15-49              (3)  as part of an economic development incentive
  15-50  package designed to attract or retain an employer, including a
  15-51  package offered under the smart jobs fund program under Subchapter
  15-52  J, Chapter 481, Government Code, and its subsequent amendments.
  15-53        (g)  An institution of higher education that has local taxing
  15-54  authority and is governed by a locally elected board of trustees is
  15-55  the primary provider of local workforce training and services that
  15-56  are needed by an employer within the taxing district and funded
  15-57  fully or in part by local funds, except in Cameron, McLennan, and
  15-58  Potter counties, or by technical vocational funds administered by
  15-59  the commission.  A local workforce development board shall select
  15-60  another qualified local or statewide provider if the local
  15-61  institution does not promptly provide locally needed workforce
  15-62  training and services.
  15-63        (h)  This section does not prohibit an institution of higher
  15-64  education from offering workforce education or workforce training
  15-65  and services that:
  15-66              (1)  are needed by an employer located in the college's
  15-67  taxing district and that meet all applicable standards; or
  15-68              (2)  have been approved under applicable law and that
  15-69  are reviewed by the Texas Higher Education Coordinating Board.
  15-70        (i)  This Act may not be interpreted to restrict a person's
   16-1  authority to contract for the provision of workforce education or
   16-2  workforce training and services that are provided without state or
   16-3  federal funds.
   16-4        SECTION 5.06.  LIST OF PUBLICLY FUNDED PROGRAMS AND CLASSES.
   16-5  (a)  A local education agency and public or private postsecondary
   16-6  educational institution shall provide the local workforce
   16-7  development board a list of all vocational-technical programs and
   16-8  classes the agency or institution offers that are funded by state
   16-9  or federal funds.
  16-10        (b)  A local workforce development board, with the assistance
  16-11  of the demand occupation list developed by the board, shall
  16-12  evaluate the supply of vocational-technical programs in relation to
  16-13  the demand for the programs and report any discrepancies between
  16-14  supply and demand to the appropriate educational institution, the
  16-15  Central Education Agency, the Texas Higher Education Coordinating
  16-16  Board, the Council on Workforce and Economic Competitiveness, and
  16-17  the Legislative Budget Board.
  16-18        SECTION 5.07.  BUDGET AND STAFFING.  A board shall establish
  16-19  a budget for the board that must be included in the local workforce
  16-20  development plan submitted to the Council on Workforce and Economic
  16-21  Competitiveness.  A board may employ professional, technical, and
  16-22  support staff as necessary to carry out its strategic planning,
  16-23  oversight, and evaluation functions.  A board's staff shall be
  16-24  separate from and independent of any organization providing
  16-25  education or workforce development services in the workforce
  16-26  development area.
  16-27        SECTION 5.08.  APPROVAL OF FISCAL AGENT.  The commission must
  16-28  approve the fiscal agent selected by a local workforce development
  16-29  board before the disbursement of any federal or state workforce
  16-30  development funds to the board.  The commission's approval shall be
  16-31  based on an audit of the financial capability of the fiscal agent
  16-32  to assure that fiscal controls and fund accounting procedures
  16-33  necessary to guarantee the proper disbursal of and accounting for
  16-34  federal and state funds are in place.
  16-35        SECTION 5.09.  CONTRACTING FOR SERVICE DELIVERY.  (a)  A
  16-36  local workforce development board may not be a direct provider of
  16-37  client services.  A board may request a waiver of this requirement
  16-38  from the Council on Workforce and Economic Competitiveness.  The
  16-39  request for a waiver must include a detailed justification based on
  16-40  the lack of an existing qualified alternative for delivery of
  16-41  client services in the workforce development area.
  16-42        (b)  If a board receives a waiver to provide direct client
  16-43  services, the evaluation of results and outcomes is provided by the
  16-44  commission.
  16-45        SECTION 5.10.  INCENTIVES AND WAIVERS.  (a)  A local
  16-46  workforce development board certified by the governor is eligible
  16-47  for incentives and program waivers to promote and support
  16-48  integrated planning and delivery of workforce development services.
  16-49        (b)  Incentives, to the extent feasible under existing
  16-50  federal and state workforce development laws, include:
  16-51              (1)  priority for discretionary funding, including
  16-52  financial incentives for the consolidation of service delivery
  16-53  areas authorized under the federal Job Training Partnership Act (29
  16-54  U.S.C. Section 1501 et seq.); and
  16-55              (2)  block grants of formula allocated funding.
  16-56        (c)  The governor, in concert with the Council on Workforce
  16-57  and Economic Competitiveness and the local workforce development
  16-58  boards, shall:
  16-59              (1)  identify specific barriers to integrated service
  16-60  delivery at the local level;
  16-61              (2)  request waivers from existing federal and state
  16-62  regulations; and
  16-63              (3)  advocate changes in federal and state laws to
  16-64  promote local service integration.
  16-65        SECTION 5.11.  SANCTIONS FOR NONPERFORMANCE.  (a)  The
  16-66  commission shall provide technical assistance to local workforce
  16-67  development areas that fail to meet performance standards
  16-68  established under this Act and other applicable federal and state
  16-69  laws.  If a local workforce development area fails to meet
  16-70  performance standards for two consecutive program years, the
   17-1  commission shall develop and impose a reorganization plan that may
   17-2  include restructuring the local workforce development board,
   17-3  prohibiting the use of designated service providers, and merging
   17-4  the local workforce development area with another area.
   17-5        (b)  A local workforce development area that is the subject
   17-6  of a reorganization plan may appeal to the governor to rescind or
   17-7  revise the plan not later than the 30th day after the date of
   17-8  receiving notice of the plan.
   17-9        SECTION 5.12.  SANCTIONS FOR LACK OF FISCAL ACCOUNTABILITY.
  17-10  If, as a result of financial and compliance audits or for another
  17-11  reason, the commission determines that there is a substantial
  17-12  violation of a specific provision of this Act or another federal or
  17-13  state law or regulation and corrective action has not been taken,
  17-14  the commission shall:
  17-15              (1)  issue a notice of intent to revoke all or part of
  17-16  the affected local plan;
  17-17              (2)  issue a notice of intent to immediately cease
  17-18  reimbursement of local program costs; or
  17-19              (3)  impose a reorganization plan under Section 5.11 of
  17-20  this Act for the local workforce development area.
  17-21        SECTION 5.13.  NONPROFIT STATUS; ABILITY TO SOLICIT FUNDS.
  17-22  (a)  A local workforce development board may apply for and receive
  17-23  a charter as a private, nonprofit corporation under the laws of
  17-24  this state and may choose to be recognized as a Section 501(c)(3)
  17-25  organization under the Internal Revenue Code of 1986 (26 U.S.C.
  17-26  Section 501(c)(3)).
  17-27        (b)  In addition to receiving funds specified in this Act, a
  17-28  local workforce development board may solicit additional funds from
  17-29  other sources, both public and private.  A board may not solicit or
  17-30  accept money from an entity with whom the board contracts for the
  17-31  delivery of services.
  17-32        SECTION 5.14.  PLANS FOR WORKFORCE EDUCATION.  In addition to
  17-33  the other requirements of this Act, in evaluating a plan for
  17-34  workforce education to ensure that the plan addresses the needs of
  17-35  local businesses, a board, on behalf of local businesses, may
  17-36  recommend changes in the delivery of programs the board provides.
  17-37  A provider must respond to a change recommended by a board not
  17-38  later than the 30th day after the date the provider receives the
  17-39  recommendation.
  17-40                   ARTICLE 6.  LOCAL DELIVERY SYSTEM
  17-41        SECTION 6.01.  WORKFORCE DEVELOPMENT CENTERS.  A local
  17-42  workforce development board shall establish workforce development
  17-43  centers accessible to workers and employers throughout the
  17-44  workforce development area.  Each center shall provide access to
  17-45  information and services available in the workforce development
  17-46  area and shall address the individual needs of workers and
  17-47  employers.  The services available at a center shall be tailored to
  17-48  meet individual needs and shall include the following:
  17-49              (1)  labor market information, including the skills of
  17-50  the area workforce, available job openings, and the education,
  17-51  training, and employment opportunities in the local area, in the
  17-52  state, and as feasible, in the nation;
  17-53              (2)  common intake and eligibility determination for
  17-54  all workforce development programs and services;
  17-55              (3)  independent assessment of individual needs and the
  17-56  development of an individual service strategy;
  17-57              (4)  centralized and continuous case management and
  17-58  counseling;
  17-59              (5)  individual referral for services including basic
  17-60  education, classroom skills training, on-the-job training, and
  17-61  customized training; and
  17-62              (6)  supportive services, including child care, loans,
  17-63  and other forms of financial assistance required to participate in
  17-64  and complete training.
  17-65        SECTION 6.02.  RIGHT TO KNOW.  A local workforce development
  17-66  center shall provide each individual who participates in a
  17-67  vocational or technical training program a written document that
  17-68  informs the person of current employment prospects and the current
  17-69  wage level for a person who completes the vocational or technical
  17-70  training program.
   18-1             ARTICLE 7.  MANUFACTURING TECHNOLOGY NETWORK
   18-2        SECTION 7.01.  PURPOSE.  In light of the transition occurring
   18-3  in defense-related industries and other manufacturing sectors in
   18-4  this state, small and medium-sized enterprises in this state need a
   18-5  manufacturing technology system that combines the resources of the
   18-6  public and private sectors.  The system is necessary to:
   18-7              (1)  expand and diversify the state economy and provide
   18-8  new and higher quality jobs for the citizens of this state;
   18-9              (2)  effectively deploy the appropriate technology for
  18-10  competitive manufacturing in the global economy through workforce
  18-11  development, applied research, and new product development;
  18-12              (3)  build the awareness of and the capacity for
  18-13  education and training that meets the needs of enterprises and
  18-14  workers;
  18-15              (4)  stimulate financial capital for basic and applied
  18-16  research to move innovation to commercial application; and
  18-17              (5)  encourage the building of partnerships between
  18-18  industry, education, and the public sector to enhance and improve
  18-19  the overall use of the state's human and capital resources.
  18-20        SECTION 7.02.  DEFINITIONS.  In this article:
  18-21              (1)  "Applied research" means research activity at an
  18-22  institution of higher education, a nonprofit research foundation,
  18-23  or in the private sector that focuses available knowledge for
  18-24  application to resolve identified problems the results of which may
  18-25  be used in industry to improve processes and applications of
  18-26  technology.
  18-27              (2)  "Basic research" means an original investigation
  18-28  performed to advance scientific knowledge that does not have a
  18-29  specific commercial objective but has a potential long-range value
  18-30  to commercial interests.
  18-31              (3)  "Enterprise" means a firm that has its principal
  18-32  place of business or a manufacturing facility in this state.
  18-33              (4)  "Institution of higher education" has the meaning
  18-34  assigned by Section 61.003, Education Code, and its subsequent
  18-35  amendments.
  18-36              (5)  "Manufacturing technology network" means a
  18-37  coordinated network of public and private manufacturing
  18-38  modernization resources designed to stimulate the competitiveness
  18-39  of small and medium-sized manufacturing firms in this state,
  18-40  including manufacturing technology centers, shared-use facilities,
  18-41  extension services, and specific training programs.
  18-42              (6)  "New technology" means methods, products,
  18-43  processes, and procedures developed through science or research.
  18-44              (7)  "Nonprofit research institution" means a not for
  18-45  profit public or private facility in this state that has the
  18-46  capacity to conduct applied and basic research projects and that is
  18-47  not a subsidiary of a corporation, partnership, or association that
  18-48  operates for a profit and does not have its stock or assets owned
  18-49  or controlled by a corporation, partnership, or association that
  18-50  operates for a profit.
  18-51              (8)  "Person" means an individual, partnership,
  18-52  corporation, or joint venture that conducts business or proposes to
  18-53  conduct business in this state.
  18-54              (9)  "Product" means an outcome, device, technique, or
  18-55  process that has advanced beyond the theoretical stage, is in a
  18-56  prototype or practice stage, and that is currently being or may in
  18-57  the future be developed or marketed commercially.
  18-58              (10)  "Technology deployment" means the process of
  18-59  assisting a manufacturing enterprise to appraise, purchase,
  18-60  install, integrate, and effectively use equipment, techniques, and
  18-61  processes, including the training of workers in the manufacturing
  18-62  enterprise, that improve the quality and productivity of goods and
  18-63  services.
  18-64              (11)  "Technology manufacturing and business incubator"
  18-65  means a facility that houses and assists in the start-up of
  18-66  business for technology-related businesses.
  18-67              (12)  "Technology transfer" means a two-way process by
  18-68  which ideas or inventions for new technology developed in a
  18-69  research program on a laboratory or pilot-plant scale are converted
  18-70  to commercial use.
   19-1        SECTION 7.03.  MANUFACTURING TECHNOLOGY NETWORK.  (a)  The
   19-2  strategic plan for economic and workforce development shall include
   19-3  recommendations to the governor for the goals, objectives,
   19-4  performance standards, and design of a manufacturing technology
   19-5  network to improve the technological capabilities of small and
   19-6  medium-sized manufacturing enterprises in this state.
   19-7        (b)  The plan shall:
   19-8              (1)  review current research and studies related to the
   19-9  condition of manufacturing and defense-related enterprises and
  19-10  associated technology deployment in this state;
  19-11              (2)  involve representatives of private sector
  19-12  manufacturing enterprises to determine the composition and level of
  19-13  services to be provided by the network and its components;
  19-14              (3)  include linkages between the state's four-year
  19-15  institutions of higher education, community colleges, the Texas
  19-16  State Technical College System, and proprietary schools to assist
  19-17  in the improvement of technical curriculum and counseling,
  19-18  including assistance to enable defense-industry workers and
  19-19  military personnel who have management, professional, and technical
  19-20  skills acquired in the defense industry or military, to acquire
  19-21  skills necessary to obtain and thrive in new jobs;
  19-22              (4)  assure the development of quality education and
  19-23  training curricula through the use of identified standards
  19-24  developed against national and international standards;
  19-25              (5)  consider the availability of existing resources
  19-26  for technology and business assistance, outreach capabilities, and
  19-27  technology transfer in institutions of higher education, nonprofit
  19-28  research institutions, local technology business incubators, and
  19-29  other sources capable of forming a base for network services;
  19-30              (6)  make recommendations to the governor on applying
  19-31  for federal funds to operate one or more manufacturing technology
  19-32  centers and associated technology deployment; and
  19-33              (7)  establish a system to reduce existing barriers and
  19-34  effectively use university and federal laboratories for technology
  19-35  transfer activities.
  19-36        (c)  The network shall contain the following elements:
  19-37              (1)  the ability to meet the specific needs and
  19-38  capabilities of enterprises seeking assistance;
  19-39              (2)  the capacity to respond to federal initiatives and
  19-40  investment in technology deployment and defense conversion;
  19-41              (3)  the provision of assistance to small and
  19-42  medium-sized manufacturing enterprises in this state in the:
  19-43                    (A)  application of technology and the
  19-44  integration of new technology with conventional systems;
  19-45                    (B)  education and training of employees of small
  19-46  and medium-sized enterprises, including training courses in
  19-47  advanced manufacturing techniques and processes;
  19-48                    (C)  provision of plant-based assessment of
  19-49  problems with guidance for solutions; and
  19-50                    (D)  provision of inter-firm collaboration,
  19-51  including opportunities for enterprises in different fields to
  19-52  exchange information, share experiences, and solve problems in
  19-53  order to facilitate technology transfer;
  19-54              (4)  the establishment of a system to evaluate the
  19-55  effectiveness and efficiency of services provided by the network to
  19-56  small and medium-sized manufacturing enterprises;
  19-57              (5)  the ability to establish and operate, directly or
  19-58  under a contract or interagency agreement, an electronic
  19-59  information system designed to provide access to resources that
  19-60  will assist enterprises in becoming more productive and
  19-61  competitive;
  19-62              (6)  the ability to develop and distribute information
  19-63  about manufacturing modernization and assistance that is available
  19-64  to assist small and medium-sized enterprises to produce and market
  19-65  higher-value added products;
  19-66              (7)  the establishment of special information and
  19-67  educational training programs for persons who work with small and
  19-68  medium-sized manufacturing enterprises;
  19-69              (8)  the improvement of existing networks or efforts to
  19-70  match dislocated workers with special technical skills, including
   20-1  workers in the defense industry and the military, with companies in
   20-2  this state that need those workers and their skills, by assisting
   20-3  potential employers in understanding and interpreting skills
   20-4  acquired in defense-industry and military training programs and
   20-5  other means; and
   20-6              (9)  the ability to assist workers who wish to start
   20-7  new businesses with skills requiring special certification or
   20-8  licensing through providing alternative or equivalent programs and
   20-9  special entrepreneurship training.
  20-10                   ARTICLE 8.  CONFORMING AMENDMENTS
  20-11        SECTION 8.01.  CONFORMING AMENDMENT.  Subsections (f) and
  20-12  (j), Section 61.051, Education Code, are amended to read as
  20-13  follows:
  20-14        (f)  The board shall encourage and develop new certificate
  20-15  programs in technical and vocational education in Texas public
  20-16  technical institutes and public community colleges as the needs of
  20-17  technology and industry may demand and shall recommend the
  20-18  elimination of such programs for which a need no longer exists.
  20-19  The board shall conduct a review of the certificate programs at
  20-20  least every four years or on the request of the Council on
  20-21  Workforce and Economic Competitiveness and shall terminate a
  20-22  program that does not meet performance review standards and other
  20-23  criteria established by the board.  The board shall assume the
  20-24  leadership role and administrative responsibilities for state level
  20-25  administration of postsecondary technical-vocational education
  20-26  programs in Texas public community colleges, public technical
  20-27  institutes, and other eligible public postsecondary institutions.
  20-28  The board shall ensure that standardized minimum technical and
  20-29  skill-specific competency and performance standards for each
  20-30  workforce education program, as developed by the Council on
  20-31  Workforce and Economic Competitiveness, are used in the board's
  20-32  review, approval, or disapproval of a vocational and technical
  20-33  program financed by state and federal funds.
  20-34        (j)  No off-campus courses for credit may be offered by any
  20-35  public technical institute, public community college, or public
  20-36  college or university without specific prior approval of the board.
  20-37  The board may not prohibit a public junior college district from
  20-38  offering a course for credit outside the boundaries of the junior
  20-39  college district when such course has met the requirements for
  20-40  approval as adopted by the board.  The board shall establish
  20-41  regulations for the coordination of credit <and noncredit>
  20-42  activities of adult and continuing education by public technical
  20-43  institutes, public community colleges, or public colleges and
  20-44  universities.
  20-45        SECTION 8.02.  CONFORMING AMENDMENT.  Section 61.077,
  20-46  Education Code, is amended to read as follows:
  20-47        Sec. 61.077.  JOINT ADVISORY COMMITTEE.  (a)  There is hereby
  20-48  created a joint advisory committee for the purpose of advising the
  20-49  Texas Higher Education Coordinating Board<, Texas College and
  20-50  University System,> and the State Board of Education in
  20-51  coordinating postsecondary vocational-technical activities, <and>
  20-52  vocational-technical teacher education programs offered or proposed
  20-53  to be offered in the colleges and universities of this state, and
  20-54  other relevant matters, including those listed in Section 61.076 of
  20-55  this code.  The committee shall be composed of three members from
  20-56  the State Board of Education, appointed by the chairman of the
  20-57  board and three members from the Texas Higher Education
  20-58  Coordinating Board, <Texas College and University System,>
  20-59  appointed by the chairman of the board, <and> one member designated
  20-60  by the presiding officer of the Council on Workforce and Economic
  20-61  Competitiveness, and one member representing business designated by
  20-62  the chair of the Texas Partnership for Economic Development <of the
  20-63  Texas Council on Vocational Education, appointed by the chairman of
  20-64  the council>.  A member of the <coordinating> board shall be
  20-65  designated as chairman of the joint advisory committee by the
  20-66  chairman of the <coordinating> board.  The committee shall hold
  20-67  regular annual meetings as called by the chairman.
  20-68        (b)  The purposes of this committee shall include the
  20-69  following:
  20-70              (1)  to advise the two boards on the coordination of
   21-1  postsecondary vocational-technical education and the articulation
   21-2  between postsecondary vocational-technical education and secondary
   21-3  vocational-technical education;
   21-4              (2)  to facilitate the transfer of responsibilities for
   21-5  the administration of postsecondary vocational-technical education
   21-6  from the State Board of Education to the board <Coordinating Board,
   21-7  Texas College and University System,> in accordance with Section
   21-8  111(a)(I) of the Carl D. Perkins Vocational Education Act, Public
   21-9  Law 98-524; <and>
  21-10              (3)  to advise the State Board of Education, when it
  21-11  acts as the State Board of Vocational Education, on the following:
  21-12                    (A)  <the allocation between secondary and
  21-13  postsecondary education of funds received by the State of Texas
  21-14  from the United States government under the Vocational Education
  21-15  Act of 1963, as amended, and other federal statutes relating to
  21-16  postsecondary vocational-technical education;>
  21-17                    <(B)>  the transfer of federal funds to the
  21-18  <coordinating> board for allotment to eligible public postsecondary
  21-19  institutions of higher education;
  21-20                    (B) <(C)>  the vocational-technical education
  21-21  funding for projects and institutions as determined by the
  21-22  <coordinating> board when the State Board of Vocational Education
  21-23  is required by federal law to endorse such determinations;
  21-24                    (C) <(D)>  the development and updating of the
  21-25  state plan for vocational-technical education and the evaluation of
  21-26  programs, services, and activities of postsecondary
  21-27  vocational-technical education and such amendments to the state
  21-28  plan for vocational-technical education as may relate to
  21-29  postsecondary education; <and>
  21-30                    (D) <(E)>  other matters related to postsecondary
  21-31  vocational-technical education; and
  21-32                    (E)  the coordination of curricula, instructional
  21-33  programs, research, and other functions as appropriate, including
  21-34  areas listed in Section 61.076 of this code, school-to-work and
  21-35  school-to-college transition programs, and professional development
  21-36  activities; and
  21-37              (4)  to advise the Council on Workforce and Economic
  21-38  Competitiveness on educational policy issues related to workforce
  21-39  preparation.
  21-40        SECTION 8.03.  CONFORMING AMENDMENT.  Subsection (c), Section
  21-41  481.152, Government Code, is amended to read as follows:
  21-42        (c)  The department shall administer the program and may
  21-43  enter into an interagency agreement with the Texas Commission on
  21-44  Workforce Competitiveness to perform services related to training
  21-45  and other services agreed to by the commission and the department.
  21-46        SECTION 8.04.  CONFORMING AMENDMENT.  The Texas Job-Training
  21-47  Partnership Act (Article 4413(52), Vernon's Texas Civil Statutes)
  21-48  is amended by adding Section 7A to read as follows:
  21-49        Sec. 7A.  PRIVATE INDUSTRY COUNCIL; LOCAL WORKFORCE
  21-50  DEVELOPMENT BOARD.  For the purposes of this Act, private industry
  21-51  council refers to both:
  21-52              (1)  the entity described as a private industry council
  21-53  by the federal Act; and
  21-54              (2)  a local workforce development board in a local
  21-55  market area in which a local workforce development board created
  21-56  under Article 5, Workforce and Economic Competitiveness Act, has
  21-57  been established.
  21-58                   ARTICLE 9.  TRANSITION PROVISIONS
  21-59        SECTION 9.01.  EFFECTIVE DATE; TRANSITION.  (a)  This Act
  21-60  takes effect September 1, 1993.
  21-61        (b)  The Texas Commission on Workforce Competitiveness and
  21-62  the Council on Workforce and Economic Competitiveness shall be
  21-63  appointed and operational not later than January 1, 1994.
  21-64        (c)  The Texas Employment Commission is merged into the Texas
  21-65  Commission on Workforce Competitiveness on January 1, 1994.  Any
  21-66  reference in law to the Texas Employment Commission on or after
  21-67  that date means the Texas Commission on Workforce Competitiveness.
  21-68        (d)  The programs listed in Section 2.03 of this Act are
  21-69  transferred to the Texas Commission on Workforce Competitiveness on
  21-70  January 1, 1994.  Any reference in a law governing a program listed
   22-1  in Section 2.03 of this Act to the agency that administered the
   22-2  program before that date means the Texas Commission on Workforce
   22-3  Competitiveness.
   22-4        SECTION 9.02.  TRANSITION OVERSIGHT COMMITTEE.  (a)  A
   22-5  transition oversight committee is created June 1, 1993.  The
   22-6  committee is composed of the following members:
   22-7              (1)  the chair of the Texas Employment Commission;
   22-8              (2)  the chair of the State Job Training Coordinating
   22-9  Council;
  22-10              (3)  the executive director of the Texas Department of
  22-11  Commerce;
  22-12              (4)  the chair of the State Board of Education;
  22-13              (5)  the chairman of the Texas Higher Education
  22-14  Coordinating Board;
  22-15              (6)  the presiding officer of the Texas Board of Human
  22-16  Services;
  22-17              (7)  the chair of the Texas Council on Vocational
  22-18  Education;
  22-19              (8)  the chair of the Texas Board on Aging;
  22-20              (9)  one member representing the general public to be
  22-21  appointed by the governor;
  22-22              (10)  one member representing the general public to be
  22-23  appointed by the lieutenant governor; and
  22-24              (11)  one member representing the general public to be
  22-25  appointed by the speaker of the house of representatives.
  22-26        (b)  All agencies affected by the transfer are directed to
  22-27  cooperate with the committee in formulating and implementing a
  22-28  transition plan and program.
  22-29        (c)  The committee shall develop and oversee the
  22-30  implementation of a plan that will carry out the full effect of
  22-31  this Act in an orderly fashion.  The committee shall prepare a
  22-32  written report relating to the transfer of workforce development
  22-33  programs to the Texas Commission on Workforce Competitiveness to be
  22-34  filed with the governor, the lieutenant governor, and the speaker
  22-35  of the house of representatives not later than September 1, 1993.
  22-36        (d)  The committee shall have the following duties and
  22-37  authority:
  22-38              (1)  the power to appoint a full-time staff person with
  22-39  clerical support to assist in all of the duties and
  22-40  responsibilities of the commission;
  22-41              (2)  the power to have staff transferred from state
  22-42  agencies to assist the committee in the implementation of the
  22-43  committee's duties and responsibilities;
  22-44              (3)  the power to require the affected agencies to
  22-45  develop transition programs and interim operating budgets as
  22-46  necessary to ensure an orderly transition; and
  22-47              (4)  the power to adopt interim rules and procedures
  22-48  consistent with this Act and the laws of the state.
  22-49        (e)  This section expires and the committee is abolished
  22-50  January 1, 1994.
  22-51        SECTION 9.03.  MISCELLANEOUS TRANSITION PROVISIONS.  (a)  The
  22-52  chief elected officials of a workforce development area may apply
  22-53  for certification of a local workforce development board on or
  22-54  after January 1, 1995.  The chief elected officials may request a
  22-55  waiver to allow the officials to establish a local workforce
  22-56  development board before that date from the Council on Workforce
  22-57  and Economic Competitiveness.
  22-58        (b)  To provide continuity, the chief elected officials shall
  22-59  consider appointing persons to the local workforce development
  22-60  boards who are serving or who have served previously on a private
  22-61  industry council, a quality workforce planning committee, a job
  22-62  service employer committee, and any other entity affected by this
  22-63  Act.
  22-64        (c)  A local workforce development board established under
  22-65  this Act and certified by the governor shall establish local
  22-66  workforce development centers not later than the 270th day after
  22-67  the board is certified.
  22-68        (d)  A local workforce development board created under this
  22-69  Act is required to contract with the commission for the provision
  22-70  of labor-exchange functions that were previously carried out at the
   23-1  local level by the Texas Employment Commission.  This subsection
   23-2  does not apply to a workforce development area in which a local
   23-3  workforce development board establishes cause for nonperformance.
   23-4  The inapplicability of this subsection to a workforce development
   23-5  area under this subsection may be contested by the commission.  The
   23-6  Council on Workforce and Economic Competitiveness has final
   23-7  authority to resolve the issue under this subsection.  This
   23-8  subsection expires January 1, 1998.
   23-9        (e)  A local workforce development board may not have
  23-10  authority over funds for adult basic education and literacy
  23-11  programs in the area served by the board before January 1, 1995.
  23-12        SECTION 9.04.  Emergency.  The importance of this legislation
  23-13  and the crowded condition of the calendars in both houses create an
  23-14  emergency and an imperative public necessity that the
  23-15  constitutional rule requiring bills to be read on three several
  23-16  days in each house be suspended, and this rule is hereby suspended,
  23-17  and that this Act take effect and be in force according to its
  23-18  terms, and it is so enacted.
  23-19                               * * * * *
  23-20                                                         Austin,
  23-21  Texas
  23-22                                                         April 26, 1993
  23-23  Hon. Bob Bullock
  23-24  President of the Senate
  23-25  Sir:
  23-26  We, your Committee on Economic Development to which was referred
  23-27  S.B. No. 642, have had the same under consideration, and I am
  23-28  instructed to report it back to the Senate with the recommendation
  23-29  that it do not pass, but that the Committee Substitute adopted in
  23-30  lieu thereof do pass and be printed.
  23-31                                                         Parker,
  23-32  Chairman
  23-33                               * * * * *
  23-34                               WITNESSES
  23-35                                                  FOR   AGAINST  ON
  23-36  ___________________________________________________________________
  23-37  Name:  Bob McPherson                                           x
  23-38  Representing:  Tech. Resource for Sen. Ellis
  23-39  City:  Austin
  23-40  -------------------------------------------------------------------
  23-41  Name:  Ronald W. Kessler                         x
  23-42  Representing:  Greater Austin C. of C.
  23-43  City:  Austin
  23-44  -------------------------------------------------------------------
  23-45  Name:  Ronald W. Kessler                         x
  23-46  Representing:  American Electronics Assn.
  23-47  City:  Austin
  23-48  -------------------------------------------------------------------
  23-49  Name:  Joe D. Gunn                               x
  23-50  Representing:  Tx AFL/CIO
  23-51  City:  Austin
  23-52  -------------------------------------------------------------------
  23-53                                                  FOR   AGAINST  ON
  23-54  ___________________________________________________________________
  23-55  Name:  Mary Buckley                                            x
  23-56  Representing:  Tx Comptroller of Public Acct.
  23-57  City:  Austin
  23-58  -------------------------------------------------------------------
  23-59  Name:  Sandy Dochen                              x
  23-60  Representing:  Gov Task Fce on Econ. Transitn
  23-61  City:  Austin
  23-62  -------------------------------------------------------------------
  23-63  Name:  John D. Baker                             x
  23-64  Representing:  Tx Assn of Private Ind. Councl
  23-65  City:  Austin
  23-66  -------------------------------------------------------------------
  23-67  Name:  Kwaku Agbottah                            x
  23-68  Representing:  TAPIC
  23-69  City:  Austin
  23-70  -------------------------------------------------------------------
   24-1  Name:  Dennis Richter                            x
   24-2  Representing:  TAPIC
   24-3  City:  Taylor
   24-4  -------------------------------------------------------------------
   24-5  Name:  Leonardo de la Garza                      x
   24-6  Representing:  Tx Public Commun. Jr. College
   24-7  City:  El Paso
   24-8  -------------------------------------------------------------------
   24-9  Name:  Diana Morales Taylor                      x
  24-10  Representing:  N. Harris Montgomery Comm. Coll
  24-11  City:  Kingwood
  24-12  -------------------------------------------------------------------
  24-13  Name:  Lee B. Murdy                              x
  24-14  Representing:  Bus. & Ind. Advis.
  24-15                 Council/N. Harris
  24-16  City:  Houston
  24-17  -------------------------------------------------------------------
  24-18  Name:  Wayne Slovacek                            x
  24-19  Representing:  San Jacinto College
  24-20  City:  Deer Park
  24-21  -------------------------------------------------------------------
  24-22  Name:  Jack W. Coe                               x
  24-23  Representing:  San Jacinto College
  24-24  City:  Deer Park
  24-25  -------------------------------------------------------------------
  24-26  Name:  Michael Putegnat                                        x
  24-27  Representing:  Tx Southmost College
  24-28  City:  Brownsville
  24-29  -------------------------------------------------------------------
  24-30  Name:  Jebron McCue                                      x
  24-31  Representing:  Tx Dept. on Aging
  24-32  City:  Austin
  24-33  -------------------------------------------------------------------
  24-34  Name:  Ralph Hargrow                                     x
  24-35  Representing:  Dal/Ft. W. Metro Qual.
  24-36                 Work Fce
  24-37  City:  Dallas
  24-38  -------------------------------------------------------------------
  24-39  Name:  John H. Stevens                           x
  24-40  Representing:  Tx Bus. & Education Coalition
  24-41  City:  Austin
  24-42  -------------------------------------------------------------------
  24-43  Name:  Brad Helbert                                            x
  24-44  Representing:  W. Central Tx Council
  24-45  City:  Abilene
  24-46  -------------------------------------------------------------------
  24-47  Name:  Mary Ross                                               x
  24-48  Representing:  W. Cent. Tx Priv. Ind. Council
  24-49  City:  Abilene
  24-50  -------------------------------------------------------------------
  24-51  Name:  Walter G. Diggles                         x
  24-52  Representing:  TARC & DETCOG
  24-53  City:  Jasper
  24-54  -------------------------------------------------------------------
  24-55                                                  FOR   AGAINST  ON
  24-56  ___________________________________________________________________
  24-57  Name:  David Stockton for Roger Williams         x
  24-58  Representing:  Bell Helicopter Textron, Inc.
  24-59  City:  Ft. Worth
  24-60  ___________________________________________________________________
  24-61  Name:  Robert D. Agee                            x
  24-62  Representing:  RDA Computer Training
  24-63  City:  Austin
  24-64  -------------------------------------------------------------------
  24-65  Name:  David R. Pinkus                           x
  24-66  Representing:  Small Business United of Tx
  24-67  City:  Austin
  24-68  -------------------------------------------------------------------
  24-69  Name:  C. A. Roberson                            x
  24-70  Representing:  Tarrant Co. Jr. College
   25-1  City:  Ft. Worth
   25-2  -------------------------------------------------------------------
   25-3  Name:  Buddy Venters                             x
   25-4  Representing:  Del Mar College
   25-5  City:  Corpus Christi
   25-6  -------------------------------------------------------------------
   25-7  Name:  Dennis Michaelis                          x
   25-8  Representing:  McLennan Community College
   25-9  City:  Waco
  25-10  -------------------------------------------------------------------
  25-11  Name:  Britton Ryan                              x
  25-12  Representing:  Houston Comm. College System
  25-13  City:  Houston
  25-14  -------------------------------------------------------------------
  25-15  Name:  Sylvia R. Ramos                           x
  25-16  Representing:  Houston Comm. College System
  25-17  City:  Houston
  25-18  -------------------------------------------------------------------
  25-19  Name:  Nellie Carr Thorogood                     x
  25-20  Representing:  N. Harris Mont. Comm College
  25-21  City:  Kingwood
  25-22  -------------------------------------------------------------------
  25-23  Name:  Tom Sewell                                x
  25-24  Representing:  San Jacinto College
  25-25  City:  Deer Park
  25-26  -------------------------------------------------------------------
  25-27  Name:  Dr. Wade Kirk                             x
  25-28  Representing:  Vernon Regional Jr. College
  25-29  City:  Vernon
  25-30  -------------------------------------------------------------------
  25-31  Name:  Jimmy Goodson                             x
  25-32  Representing:  Victoria College
  25-33  City:  Victoria
  25-34  -------------------------------------------------------------------
  25-35  Name:  Dr. Marc Nigliazzo                        x
  25-36  Representing:  Galveston College
  25-37  City:  Galveston
  25-38  -------------------------------------------------------------------
  25-39  Name:  Richard Minton                            x
  25-40  Representing:  Tyler Jr. College
  25-41  City:  Tyler
  25-42  -------------------------------------------------------------------
  25-43  Name:  Roberto Reyes                             x
  25-44  Representing:  El Paso Community College
  25-45  City:  El Paso
  25-46  -------------------------------------------------------------------
  25-47  Name:  Stanton C. Calvert                        x
  25-48  Representing:  Tx Public Comm. Jr. Assoc.
  25-49  City:  Austin
  25-50  -------------------------------------------------------------------
  25-51  Name:  Marvin Felder                             x
  25-52  Representing:  Tx Pub. Comm. Jr. College
  25-53                 Assn.
  25-54  City:  Austin
  25-55  -------------------------------------------------------------------
  25-56                                                  FOR   AGAINST  ON
  25-57  ___________________________________________________________________
  25-58  Name:  Ramon Laughter                            x
  25-59  Representing:  N. Harris Mont. Commun. College
  25-60  City:  Spring
  25-61  -------------------------------------------------------------------
  25-62  Name:  John E. Pickelman                         x
  25-63  Representing:  N. Harris Mont. Commun. College
  25-64  City:  Houston
  25-65  -------------------------------------------------------------------
  25-66  Name:  Joy T. Martin                             x
  25-67  Representing:  El Paso Community College
  25-68  City:  El Paso
  25-69  -------------------------------------------------------------------
  25-70  Name:  Dr. Charles A. Green                      x
   26-1  Representing:  Houston Commun. College System
   26-2  City:  Houston
   26-3  -------------------------------------------------------------------
   26-4  Name:  Norman Wallace                            x
   26-5  Representing:  Bee County College
   26-6  City:  Beeville
   26-7  -------------------------------------------------------------------
   26-8  Name:  Jackie Caswell                            x
   26-9  Representing:  Dallas Community Colleges
  26-10  City:  Dallas
  26-11  ___________________________________________________________________
  26-12  Name:  Larry Phillips                            x
  26-13  Representing:  Angelina College
  26-14  City:  Lufkin
  26-15  -------------------------------------------------------------------
  26-16  Name:  Roland K. Smith                           x
  26-17  Representing:  Austin Community College
  26-18  City:  Austin
  26-19  -------------------------------------------------------------------
  26-20  Name:  Sabrina Foster                            x
  26-21  Representing:  Houston Mayor & City Council
  26-22  City:  Houston
  26-23  -------------------------------------------------------------------
  26-24  Name:  Robin Gilchrist                           x
  26-25  Representing:  Texans for Education
  26-26  City:  Austin
  26-27  -------------------------------------------------------------------
  26-28  Name:  Cathy L. Rhudy                                          x
  26-29  Representing:  TX Assn. for Literacy &
  26-30                 AdultEd
  26-31  City:  San Antonio
  26-32  -------------------------------------------------------------------
  26-33  Name:  Maggie Cunningham                                       x
  26-34  Representing:  TX Assn. for Literacy &
  26-35                 AdultE
  26-36  City:  New Braunfels
  26-37  -------------------------------------------------------------------