BILL ANALYSIS
C.S.H.B. 1349
By: Oliveira
April 26, 1995
Committee Report (Substituted)
BACKGROUND
During the 73rd session, the legislature adopted legislation
consolidating a number of state-level advisory councils regarding
job training, employment and employment related educational
programs into a single state advisory council (The Texas Council on
Workforce and Economic Competitiveness). The council was charged
with developing a strategic plan for all workforce and development
programs in Texas, developing performance measures for all
workforce programs, and developing recommendations to the governor
and legislature on consolidating workforce programs in this state.
The legislation, SB 642, also allowed chief elected officials
(mayors and county judges) to consolidate a number of local
workforce related advisory councils into a single workforce
development board for their area. These boards were charged with
developing a single plan for the provision for workforce services
and programs. The boards were responsible for overseeing and
evaluating the provision of job training, employment-related
services in their area.
PURPOSE
The purpose of this bill is to create a workforce development
system that is responsive to the needs of employers, workers and
taxpayers in Texas. The bill consolidates the administrative and
programmatic functions of a number of workforce programs in Texas.
The bill provides for block grants to local areas of the state so
that they can establish workforce development programs that meet
their local needs.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does expressly grant
rulemaking authority to:
(a) the Texas Employment Commission under:
(1) SECTION 1.03(Section 302.002(a) and (b), Chapter 302A,
Title 4B, Labor Code);
(2) SECTION 3.01(Section 11.18(b), Education Code, as
amended by Chapter 463, Acts of the 71st Legislature,
Regular Session, 1989);
(3) SECTION 3.05(Section 32.24, Education Code) in
conjunction with SECTION 3.51(2) which repeals Section
32.22, Education Code, rulemaking authority for the
State Board of Education over proprietary schools;
(4) SECTION 3.06(Section 32.25(b), Education Code);
(5) SECTION 3.28(Section 33.09, Education Code);
(6) SECTION 3.33(Section 31.0125, Human Resources Code);
(7) SECTION 3.36(Section 4, Texas Driver and Traffic Safety
Education Act (Article 4413(29c), Vernon's Texas Civil
Statutes));
(8) SECTION 3.37(Section 6, Texas Driver and Traffic Safety
Education Act (Article 4413(29c), Vernon's Texas Civil
Statutes));
(9) SECTION 3.39(Section 8(b), Texas Driver and Traffic
Safety Education Act (Article 4413(29c), Vernon's Texas
Civil Statutes)); and
(b) a transition oversight committee under SECTION 4.02(e) of this
Act. The rulemaking authority and the transition oversight
committee created under SECTION 4.02 is abolished January 1, 1996.
SECTION BY SECTION ANALYSIS
ARTICLE 1. WORKFORCE DEVELOPMENT
SECTION 1.01. Amends the heading of Title 4B, Labor Code, as
follows:
SUBTITLE B. New Title: TEXAS EMPLOYMENT COMMISSION; WORKFORCE
DEVELOPMENT; EMPLOYMENT SERVICES
SECTION 1.02. (a) Repeals Chapter 301, Labor Code. (b) Moves
Chapter 202, Title 4A, Labor Code, to Title 4B, and redesignates as
Chapter 301, Labor Code, and amends as follows:
CHAPTER 301. TEXAS EMPLOYMENT COMMISSION
SUBCHAPTER A. ORGANIZATION OF COMMISSION
Sec. 301.001. PURPOSE; AGENCY GOALS; DEFINITION. (a)
Establishes the Texas Employment Commission as the state
agency to administer the unemployment compensation insurance
program and to operate an integrated workforce development
system. (b) States the commission shall meet the needs of:
(1) the businesses of this state for the
development of a highly skilled and productive
workforce;
(2) the workers of this state for an efficient
unemployment compensation system, and for
education, skills training, and labor market
information to enhance their employability,
earnings, and standard of living;
(3) the communities of this state to provide
economic incentive programs for job creation,
attraction, and expansion; and
(4) the taxpayers of this state to ensure that tax
revenues for workforce development are spent
efficiently and effectively.
(c) States that in this title "commission" means the Texas
Employment Commission.
Sec. 301.002. Redesignates existing Sec. 202.001 and changes
Texas Employment Commission to commission.
Sec. 301.003-Sec. 301.007. Redesignates existing Sec.
202.002-Sec. 202.006.
Sec. 301.008. APPLICATION OF SUNSET ACT. Subjects the Texas
Employment Commission (commission) to the Texas Sunset Act.
Provides that the commission is abolished September 1, 1997,
unless continued by that chapter.
Sec. 301.009. COMMISSION DIVISIONS. Provides that the
commission shall have a unemployment compensation division and
a workforce development division. The executive director may
establish additional divisions. The commission shall appoint
the division directors and the directors serve at the pleasure
of the commission.
SUBCHAPTER B. COMMISSION ADMINISTRATION
Sec. 301.021-301.025. Redesignates existing Sec. 202.021-202.025.
New Title: SUBCHAPTER C. EXECUTIVE DIRECTOR; AGENCY PERSONNEL
Sec. 301.041. EXECUTIVE DIRECTOR; AGENCY PERSONNEL. Changes
references from "agency administrator" to "executive
director," "subtitle" to "title," and "Chapter 492, Acts of
the 69th Legislature, Regular Session, 1985 (Article 6252 11g, Vernon's
Texas Civil Statutes)" to "Chapter 655, Government Code." States
that a reference in this code or another law to the "agency
administrator" of the commission means the "executive director."
The executive director shall execute a bond in an amount not to
exceed $50,000.
Sec. 301.042. ACCESS TO CERTAIN CRIMINAL HISTORY RECORD
INFORMATION. Deletes certain provisions regarding criminal
history checks which have been duplicatively codified under
Chapter 411, Subchapter F, Government Code. Redesignates
subsections accordingly.
Sec. 301.043. Redesignates Sec. 202.043.
SUBCHAPTER D. GENERAL POWERS AND DUTIES OF COMMISSION
Sec. 301.061-301.066. Make conforming changes. Redesignate
Sec. 202.061-202.066.
SUBCHAPTER E. INVESTIGATIVE AND SUBPOENA POWERS
Sec. 301.071-301.074. Make conforming changes. Redesignate
Sec. 202.071-202.074.
SUBCHAPTER F. EMPLOYMENT SERVICE
Sec. 301.081 and 301.082. Make conforming changes.
Redesignates Sec. 202.081 and 202.082.
SUBCHAPTER G. RECORDS
Sec. 301.091-301.094. Make conforming changes. Redesignate
Sec. 202.091-202.094.
SECTION 1.03. Amends Title 4B, Labor Code, by adding new Chapters
302 and 303 as follows:
CHAPTER 302. DIVISION OF WORKFORCE DEVELOPMENT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 302.001. DEFINITIONS. Defines "Council," "Director,"
and "Division."
Sec. 302.002. GENERAL WORKFORCE DEVELOPMENT POWERS AND DUTIES
OF COMMISSION. (a) Requires the commission to perform certain
duties.
(b) Allows to commission to adopt rules, make expenditures,
enter into contracts, require reports, and take other
necessary action to fulfill the division's administrative
duties.
(c) Allows the commission to obligate funds from the skills
development fund in a manner consistent with the rules adopted
for the programs. The commission shall report to the
governor, legislature, and the council on a quarterly basis.
SUBCHAPTER B. JURISDICTION OF DIVISION OF WORKFORCE DEVELOPMENT
Sec. 302.021. CONSOLIDATION OF WORKFORCE DEVELOPMENT PROGRAMS.
(a) Sets forth the programs consolidated under the authority
of the division.
(b) The division shall administer the programs consolidated
in (a) and the programs listed in (b).
(c) The division shall administer, to the extent permitted
under federal law, programs funded through education
coordination funds under Sec. 123, Job Training Partnership
Act (29 U.S.C. Section 1533).
Sec. 302.022. CLIENT ACCESSIBILITY. Requires the director to
develop a uniform, statewide client application and enrollment
process to determine an applicants eligibility for workforce
training and services funded through the department.
Sec. 302.023. INTEGRATION OF PROGRAM ADMINISTRATION. (a)
Requires the director to develop a plan to integrate the
administrative and program functions of the programs under the
jurisdiction and authority of the division.
(b) Requires the plan to specify dates by which integration
must be complete, shall be based on existing funds and
minimize the disruption of services at the local level.
(c) Requires the plan be submitted to the governor,
legislature, and the Council of Workforce and Economic
Competitiveness (council) not later than December 1, 1996.
(d) Sunsets this section on January 1, 1997.
SUBCHAPTER C. STATE-LOCAL PLANNING; LOCAL WORKFORCE DEVELOPMENT BOARDS
Sec. 302.041. STATE-LOCAL PLANNING PROCESS. Requires the
director to design and implement a state-local planning
process for workforce training and services provided through
programs under the jurisdiction of the division.
Sec. 302.042. REVIEW OF LOCAL PLANS; RECOMMENDATIONS.
Requires the commission to review the local workforce training
and services plan. Requires the commission to make
recommendations to the council regarding implementation of the
plans.
Sec. 302.043. TRAINING FOR LOCAL WORKFORCE DEVELOPMENT BOARD
MEMBERS. (a) Requires the division to provide management and
board development training for all members of boards that
include certain information. Provides that a person is
ineligible to continue to serve on the board if the member of
the board does not receive training before a certain date.
(b) Authorizes the training to be provided directly by the
division or a third party that has experience in providing
training to local workforce development or other similar
boards.
(c) Requires a local board to provide at least 25 percent of
the costs for management and board development training of its
members.
SUBCHAPTER D. ALLOCATION OF FUNDS; BLOCK GRANT PROGRAM
Sec. 302.061. ADMINISTRATION FUNDING. Allows the commission
to use up to 20 percent of the amount available for workforce
training and services to implement state-level
responsibilities, unless superseded by federal or other state
law.
Sec. 302.062. BLOCK GRANTS TO LOCAL WORKFORCE DEVELOPMENT
AREAS. (a) Requires the commission to provide to local
workforce development areas with local workforce development
boards not less than 80 percent of the funds available through
a block grant process, unless superseded by federal or other
state law.
(b) Requires the commission to allocate money by formula in
cases where funds are allocated through established formulas.
(c) Requires the commission to develop a need-based formula to
allocate funds in the case of funds that are not allocated by
formula.
(d) Requires that the commission may not allocate less than 90
percent or more than 125 percent of the amount an area
received during the preceding state fiscal biennium.
(e) Requires the commission to provide training and services
to the extent allowed by federal law in areas the state has
not designated local workforce development areas or where no
local workforce development board has been formed.
Sec. 302.063. WAIVERS. Requires the commission to develop
criteria for the granting of waivers allowed under this
chapter.
CHAPTER 303. SKILLS DEVELOPMENT FUND
Sec. 303.001. PURPOSE. States the purpose of this chapter is
to remove administrative barriers that impede the response of
community and technical colleges to industry training needs
and to develop incentives for community and technical colleges
to provide customized training in a timely and efficient
manner.
Sec. 303.002. WAIVER. (a) Allows the commission to review and
recommend to the legislature any waiver of requirements under
Title 3, Education Code, which impede the ability of community
and technical colleges to develop customized training in
demand occupations particular industries.
(b) Sets forth the requirements for a community or technical
college to recover customized training costs.
Sec. 303.003. SKILLS DEVELOPMENT FUND. (a) States the skills
development fund is created from money in the general revenue
fund.
(b) States the job training purposes for which the skills
development fund may be used by community and technical
colleges as start-up or emergency funds.
(c) Establishes the commission, or a person appointed by the
commission, is responsible for the distribution of money from
the skills development fund.
Sec. 303.004. FUND REVIEW. Requires the Texas Higher Education
Coordinating Board to review all customized training programs
biennially to verify that state funds are being used
appropriately.
SECTION 1.04. Redesignates Chapter 302, Labor Code, as Chapter
304, Labor Code, and amends as follows:
CHAPTER 304. EMPLOYMENT COUNSELING FOR DISPLACED HOMEMAKERS
Sec. 304.001. DEFINITION. Deletes definition of "Commission."
Redesignates subsections accordingly.
Sec. 304.002-304.004. Redesignates existing Sec. 302.002-302.004.
SECTION 1.05. Moves Chapter 216, Labor Code, from Title 4A, Labor
Code, to Title 4B, Labor Code, redesignated as Chapter 305, Labor
Code, and amends as follows:
CHAPTER 305. COMMUNITIES IN SCHOOLS PROGRAM
SUBCHAPTER A. GOVERNMENTAL PROVISIONS
Sec. 305.001 and 305.002. Redesignates existing Sections
216.001 and 216.002.
SUBCHAPTER B. OPERATION OF PROGRAM
Sec. 305.011. STATE COORDINATOR. Requires the executive
director to appoint a state coordinator for the Communities in
Schools program. Redesignates existing Section 216.011.
Sec. 305.012 and 305.013. Redesignates existing Section
216.012 and 216.013.
SUBCHAPTER C. PARTICIPATION IN PROGRAM BY CERTAIN SCHOOLS
Sec. 305.021. DESIGNATION OF PARTICIPATING SCHOOLS. (a)
Requires the state coordinator, in cooperation with the
program directors in the counties or cities in which a
Community in Schools program is established on September 1,
1993, to designate to participate in the program the original
campuses designated on September 1, 1991 to participate and no
more than 135 additional elementary and secondary schools.
(b) Requires the state coordinator, in cooperation with
the program directors in six additional counties or
cities to choose more elementary and secondary schools
to participate in the program.
(c) Makes no change.
Sec. 305.022. Makes a conforming change. Redesignates
existing Section 216.022.
SUBCHAPTER D. PROGRAM FUNDING
Sec. 305.031. Redesignates existing Section 216.031.
SECTION 1.06. Moves Chapter 217, Labor Code, from Title 4A, Labor
Code, to Title 4B, redesignated as Chapter 306, Labor Code, and
amends as follows:
CHAPTER 306. PROJECT RIO (REINTEGRATION OF OFFENDERS)
Sec. 306.001-306.004. Redesignates existing Sections 217.001-217.004.
Sec. 306.005. Redesignates existing Section 217.005 and
deletes a provision that a memorandum of understanding must
have which required that the commission cooperate with service
providers that the commission will oversee under other
provisions of the bill.
Sec. 306.006. Make conforming changes. Redesignate existing
Sections 217.006.
SECTION 1.07. Repeals Sec. 201.002, Labor Code.
ARTICLE 2. CONFORMING AMENDMENTS--WORKFORCE AND ECONOMIC
COMPETITIVENESS ACT
SECTION 2.01. Amends Sec. 1.04. DEFINITIONS. Workforce and Economic
Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
Statutes), to add definitions of "Division," and "Local labor
market." Renumbers subsections accordingly.
SECTION 2.02. Amends Sec. 2.01. CREATION OF COUNCIL. Article
5190.7a, V.T.C.S., to attach the council for administrative
purposes to the General Services Commission.
SECTION 2.03. Amends Section 2.02(b), Article 5190.7a, V.T.C.S., as
follows:
The council shall be composed of:
(1) three voting members appointed by the governor
who represent education, one of whom
represents local public education, one of whom
represents public postsecondary education, and
one of whom represents vocational education;
(2) five voting members who represent organized
labor appointed by the governor based on
recommendations made by recognized labor
organizations;
(3) five voting members appointed by the governor
who represent business and industry, including
business members serving on local workforce
development boards or private industry
councils;
(4) one voting member appointed by the governor
who represents a community-based organization;
and
(5) the following ex officio voting members:
(A) the chair of the State Board of Education;
(B) the chair of the Texas Higher Education
Coordinating Board;
(C) the presiding officer of the Texas Board of
Human Services;
(D) the member of the Texas Employment Commission
who represents labor; and
(E) the member of the Texas Employment Commission
who represents employers.
SECTION 2.04. Amends Sec. 203(b), Article 5190.7a, V.T.C.S., to
establish the term of non-ex officio members of the council to
serve four-year terms, with one-half of those members' terms
expiring in each odd-numbered year.
SECTION 2.05. Amends Sec. 2.06(a), Article 5190.7a, V.T.C.S., to
set forth the duties of the council. Amends existing subdivisions
(1), (2), (6), (7), (8), (11), and (15). Deletes existing
subdivisions (3), (4), (5), (9), (13), (14), (17), (20), and (21).
Renumbers subdivisions accordingly.
SECTION 2.06. Amends Sec. 2.09(d), Article 5190.7a, V.T.C.S., to
make a conforming change.
SECTION 2.07. Amends Sec. 2.11, Article 5190.7a, V.T.C.S., to
change the title to DISSOLUTION OF STATE ADVISORY COUNCILS AND
TRANSFER OF RESPONSIBILITIES. Clarifies the language in (b) to
dissolve certain state advisory councils, boards, and committees,
and the council assumes the responsibilities of those councils,
boards and committees.
SECTION 2.08. Amends Sec. 2.12, Article 5190.7a, V.T.C.S.,
requiring the General Service Commission to serve as the council's
fiscal agent.
SECTION 2.09. Amends Sec. 2.13(c) and (e) requiring the executive
director of the council to adopt the administrative and personnel
procedures of the council's fiscal agent, and requires the
executive director of the State Occupational Information
Coordinating Council to be an employee of the council. Allows the
council to enter into contracts for products and services with
state agency members of the council and other organizations.
SECTION 2.10. Amends Sec. 2.17(d), Article 5190.7a, V.T.C.S., by
deleting regulation or rule so that state agencies responsible for
the administration of human resources and workforce development
programs shall implement recommendations if the recommendations do
not violate existing federal or state law.
SECTION 2.11. Amends Sec. 2.18, FUNDING, Article 5190.7a, V.T.C.S.,
by deleting (b) which required the council to develop a budget for
the biennium ending August 31, 1995. Renumbers subsections
accordingly.
SECTION 2.12. Amends Sec. 4.01, Article 5190.7a, V.T.C.S., as
follows:
Sec. 4.01. CREATION OF LOCAL WORKFORCE DEVELOPMENT BOARD. (a)
allows chief elected officials in designated workforce
development areas to form a local workforce development board
in accordance with rules adopted by the Texas Employment
Commission. The authority granted under this subsection does
not give a local workforce development board any direct
authority or control over workforce funds and programs in its
area, other than programs funded through the board.
(b) Requires at least three-fourths of the chief elected
officials in the workforce development area who represents
units of general local government to agree to the creation of
the board, including all of the chief elected officials who
represent units of general local government having populations
of at least 200,000, before a board is authorized to be
created.
(c) Redesignates and amends existing subsection (b) to include
in the local government agreement: a process of keeping chief
elected officials informed on local workforce development
activities; and how resources allocated will be shared among
the parties to the agreement.
(d)-(f) Redesignates existing Subsections (c)-(e). Makes a
conforming change.
(g) Provides that a member or former member of a local board
may not be held personally liable for any claim, damage, loss,
or repayment obligation of federal or state funds, unless the
claim, damage, loss, or repayment obligation constitutes
official misconduct, wilful disregard of requirements, or
gross negligence on the part of the board member.
SECTION 2.13. Amends Sec. 4.04, Article 5190.7a, V.T.C.S., as
follows:
(a) Requires local boards to be responsible and accountable
to the division for the strategic planning and oversight of
training and services and the evaluation of all workforce
development programs in the area. The division shall assist
boards in designing effective measures to accomplish this
responsibility. A board is directly responsible to the
division for the operational planning and administration of
all workforce training and services funded through the
commission to the local area.
(c) Adds the requirement that the board serve as the private
industry council under the federal Job Training Partnership
Act (29 U.S.C. Section 1501 et seq.). Redesignates
subdivisions accordingly. Makes conforming changes. Changes
"workforce development centers" to "career development
centers."
(d) Makes a conforming change.
(f) Requires the chief elected officials to enter into an
agreement with the local board to select the grant recipient
and administrative entity for the area and to determine
procedures for the development of the local workforce
development plan.
SECTION 2.14. Amends Sec. 4.05, Article 5190.7a, V.T.C.S. as
follows:
Sec. 4.05. LOCAL PLAN. (a) A local board shall develop a plan
that includes the components specified in this section.
(b) Specifies the strategic components of a local plan.
(c) Specifies the operational components of a local plan.
(d) Specifies the program resources in the operational
component. Makes conforming changes.
(e) Specifies the items a local plan shall identify.
SECTION 2.15. Amends Sec. 4.06(a) and (f), Article 5190.7a,
V.T.C.S., as follows:
(a) Requires the board to review, verify, modify, and use
local labor market information developed through the state's
labor market information system to identify occupation-specific labor demand in the area.
(f) Amended to require community colleges to promptly provide
training and services requested by the workforce development
board based on the labor market information system available
for the area.
SECTION 2.16. Amends Sec. 4.08(a), Article 5190.7a, V.T.C.S., to
make a conforming change so that local plans are submitted to the
division.
SECTION 2.17. Amends Sec. 5.01, Article 5190.7a, V.T.C.S., as
follows:
ARTICLE 5. LOCAL DELIVERY SYSTEM
Sec. 5.01. The local workforce development system is composed
of two major components, employer services and an integrated
service delivery system.
Sec. 5.02. CAREER DEVELOPMENT CENTERS. (a) Changes workforce
development centers to career development centers accessible
to and to address the needs of students and workers.
Subdivisions (1) and (2) are amended so services shall include
labor market information, including available job openings and
the education and training opportunities in the local area,
and a common intake and eligibility determination process for
all workforce training and services. Subdivision (6) is
amended to add student loans.
(b) Prohibits a person who provides one-stop services from
providing developmental services, except as provided by
subsection (c).
(c) Allows the division to develop a waiver process to
subsection (b). The request for a waiver must include a
detailed justification based on the lack of existing
alternatives.
(d) Requires the Texas Employment Commission, in cooperation
with local workforce development boards, to provide for filing
of unemployment insurance claims through career development
centers in each local workforce development area.
Sec. 5.03. RIGHT TO KNOW. Redesignates existing Sec. 5.02,
and adds information available on the performance of training
institution to list of information the center must provide.
Makes a conforming change.
SECTION 2.18. Amends Article 5190.7a, V.T.S.C. by adding Article 7
as follows:
ARTICLE 7. SKILL STANDARDS BOARD
Sec. 7.01. TEXAS SKILL STANDARDS BOARD. (a) Creates the Texas
Skill Standards Board as an advisory board to the council and
the governor on the development of a statewide system of
industry-defined and industry-recognized skill standards and
credentials for occupations that provide strong employment and
earnings opportunities and require less than a baccalaureate
degree.
(b) Sets forth the composition of the board, which is
appointed by and serves at the pleasure of the governor.
(c) Requires the governor to appoint the presiding officer of
the board from the members representing business.
(d) Sets forth the duties of the board.
(e) Requires the board to meet at the call of the presiding
officer.
(f) Prohibits board members from receiving compensation, but
allows for reimbursement for reasonable expenses in performing
board duties.
(g) Requires the division to provide staff support for the
board.
(h) Requires the board to report periodically to the governor,
and annually to the governor, the Texas Employment Commission,
and the legislature.
(i) Exempts the board from Article 6252-33, Revised Statutes.
SECTION 2.19. Repeals Sections 2.08, 2.14, 2.16, and 2.17(f),
Article 5190.7a, V.T.C.S.
SECTION 2.20. Requires the governor reappoint at least seven of the
members who serve on the Texas Council on Workforce and Economic
Competitiveness in a non-ex officio capacity on the day before the
effective date of this Act.
ARTICLE 3. CONFORMING AMENDMENTS
SECTION 3.01. Amends Sec. 11.18(b), Education Code, as amended by
Chapter 463, Acts of the 71st Legislature, Regular Session, 1989,
and Sec. 11.18(c)-(e), Education Code as follows:
(b) Replaces Central Education Agency with the Texas
Employment Commission for the management and administration of
the adult education program in this section.
(c) Requires the State Board of Education and the Texas
Employment Commission to work in conjunction in adopting
regulations and standards for the programs under this section.
(d) Makes conforming changes.
(e) Requires the Texas Employment Commission to fulfill the
existing role of the Texas Department of Commerce in this
section.
SECTION 3.02. Amends Sec. 32.11(5), Education Code, with a
conforming change to replace the State Commissioner of Education
with the executive director of the Texas Employment Commission to
administer the provisions of this chapter.
SECTION 3.03. Amends Sec. 32.12(c), Education Code, with a
conforming change to replace the Central Education Agency for the
purposes of this section.
SECTION 3.04. Amends Sec. 32.21 to retitle the section TEXAS
EMPLOYMENT COMMISSION. Makes conforming changes to Sec. 32.21(a)
giving jurisdiction to the commission and duty to carry out the
provisions of this chapter to the division of workforce
development. (b)-(d) Makes conforming changes.
SECTION 3.05. Amends Sec. 32.24, Education Code, to retitle the
section DUTIES OF TEXAS EMPLOYMENT COMMISSION, and makes conforming
changes to replace the administrator with the division of workforce
development of T.E.C. and the State Board of Education with the
Texas Employment Commission. Delete subsection (b).
SECTION 3.06. Amends Sec. 32.25, Education Code, by making
conforming changes to refer to the Texas Employment Commission
instead of the Central Education Agency.
SECTION 3.07. Amends Sec. 32.32, Education Code, by making
conforming changes to refer to the Texas Employment Commission
instead of the State Board of Education, and the commission instead
of the administrator.
SECTION 3.08. Amends Sec. 32.321(a), Education Code, by making
conforming changes to refer to the Texas Employment Commission
instead of the State Board of Education.
SECTION 3.09. Amends Sec. 32.33, Education Code, by making
conforming changes to refer to the Texas Employment Commission
instead of the Central Education Agency and the State Board of
Education. Also requires certain information to be furnished to a
student before enrollment, and renumbers sections accordingly.
SECTION 3.10. Amends Sec. 32.34(a) and (d), Education Code, by
making conforming changes to refer to the Texas Employment
Commission instead of the State Board of Education.
SECTION 3.11. Amends Sec. 32.38(e), Education Code, by making
conforming changes by deleting reference to the commission and the
State Board of Education.
SECTION 3.12. Amends Sec. 32.39(c) and (e), Education Code, by
making conforming changes by referring to the Texas Employment
Commission instead of the State Board of Education, the
commissioner of education, and the Central Education Agency.
SECTION 3.13. Amends Sec. 32.401(b), Education Code, so the Texas
Employment Commission, in conjunction with the Central Education
Agency, shall approve degrees to be offered by proprietary schools.
Makes conforming change to refer to the commission instead of the
agency.
SECTION 3.14. Amends Sec. 32.402(d), Education Code, to allow by
rule the Texas Employment Commission to set the late fee instead of
the State Board of Education.
SECTION 3.15. Amends Sec. 32.42(d), Education Code, by making
conforming change to refer to the Texas Employment Commission
instead of the State Board of Education.
SECTION 3.16. Amends Sec. 32.612, Education Code, by making
conforming change to refer to the Texas Employment Commission
instead of the State Board of Education.
SECTION 3.17. Amends Sec. 32.63(b), Education Code, by making
conforming change to refer to the Texas Employment Commission
instead of the Central Education Agency.
SECTION 3.18. Amends Sec. 32.64, Education Code, by making
conforming change to refer to the Texas Employment Commission
instead of the Central Education Agency.
SECTION 3.19. Amends Sec. 32.71(a)-(e), Education Code, by making
conforming changes to refer to the Texas Employment Commission
instead of the Central Education Agency, the commissioner of
education, and the State Board of Education.
SECTION 3.20. Amends Sec. 32.81(a), Education Code, by making
conforming change to refer to the Texas Employment Commission
instead of the State Board of Education.
SECTION 3.21. Amends Sec. 32.91(a), (c), and (d), Education Code,
by making conforming changes to refer to the Texas Employment
Commission instead of the State Board of Education and the Central
Education Agency administration.
SECTION 3.22. Amends Sec. 32.92(a), Education Code, by making
conforming change to refer to the Texas Employment Commission
instead of the Central Education Agency.
SECTION 3.23. Amends Sec. 33.01(7), Education Code, by making
conforming change to refer to the Texas Employment Commission
instead of the Central Education Agency.
SECTION 3.24. Amends Sec. 33.02(a), Education Code, by making
conforming change to refer to the Texas Employment Commission
instead of the commissioner of education.
SECTION 3.25. Amends Sec. 33.04, Education Code, by making
conforming changes to refer to the commission instead of the State
Board of Vocational Education.
SECTION 3.26. Amends Sec. 33.07(a) and (d), Education Code, by
making conforming changes to refer to the commission instead of the
CEA (Central Education Agency). Makes other conforming changes.
SECTION 3.27. Amends Sec. 33.08, Education Code, so that the State
Board of Vocational Education will act in conjunction with the
commission in the appropriation and distribution of funds. Makes a
conforming change to refer to the commission instead of the CEA.
SECTION 3.28. Amends Sec. 33.09, Education Code, so that the State
Board of Vocational Education, in conjunction with the commission,
shall promulgate rules necessary to implement the provisions of
this chapter.
SECTION 3.29. Amends Sec. 33.10(a), Education Code, to require that
recommendations by the advisory committee to the State Board of
Vocational Education or the commission must be acted on, and either
accepted or rejected.
SECTION 3.30. Amends Sec. 481.026, Government Code, as follows:
Sec. 481.026. LITERACY. (a) In this section "commission" means
the Texas Employment Commission.
(b) Sets forth the duties of the commission in this program.
Deletes the existing subdivision (6) and renumbers
subdivisions accordingly. Existing subsections (b) and (c) are
deleted to codify the abolishment of the Literacy Council,
which was replaced by the Council on Workforce and Economic
Development.
(c) Makes conforming changes to refer to the commission
instead of the department and the council.
SECTION 3.31. Amends Sec. 501.095(b), Government Code, by making
conforming changes to refer to section instead of subsection.
SECTION 3.32. Amends Sec. 31.012, Human Resources Code, by making
conforming changes so that the program operated under this section
(Job Opportunities and Basic Skills) is administered by the Texas
Employment Commission.
SECTION 3.33. Amends Sec. 31.0125, Human Resources Code, by making
conforming changes to refer to the Texas Employment Commission
instead of the department.
SECTION 3.34. Amends Sec. 101.023(b) and (c), Human Resources Code,
by making conforming changes to refer to the Texas Employment
Commission instead of the department.
SECTION 3.35. Amends Sec. 3, Texas Driver and Traffic Safety
Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
to define "commission" as the Texas Employment Commission, and
deletes definitions of board and commissioner. Makes conforming
changes to refer to the Texas Employment Commission instead of the
commissioner of education, the agency, agency approved. Renumbers
subsections accordingly.
SECTION 3.36. Amends Sec. 4, Texas Driver and Traffic Safety
Education Act (Article 4413(29c), V.T.C.S.), making conforming
changes to refer to the commission instead of the commissioner, the
board, and the agency.
SECTION 3.37. Amends Sec. 6, Article 4413(29c), V.T.C.S., to
retitle as RULES; CERTIFICATION, and so that the commission shall
carry out the policies of the Act, adopt rules to implement the
Act, and certify those schools meeting the requirements for a
driver training school. Makes conforming change by deleting
subsection (b).
SECTION 3.38. Amends Sec. 7(c), Article 4413(29c), V.T.C.S., making
conforming changes to refer to the commission instead of the
commissioner.
SECTION 3.39. Amends Sec. 8 and 9, Article 4413(29c), V.T.C.S.,
making conforming changes to refer to the commission instead of the
board and the commissioner. Makes conforming change to refer to
commission-approved instead of agency-approved.
SECTION 3.40. Amends Sec. 11, Article 4413(29c), V.T.C.S., by
making conforming changes to refer to the commission instead of
agency, and to refer to approved by the commission instead of
agency-approved.
SECTION 3.41. Amends Sec. 12(a) and (b), Article 4413(29c),
V.T.C.S., by making conforming changes to refer to the commission
instead of the commissioner, board, and agency.
SECTION 3.42. Amends Sec. 13, Article 4413(29c), V.T.C.S., by
making conforming changes to refer to the commission instead of the
commissioner, agency, and board. Also changes reference to
subdivision to subsection, and subsection to section.
SECTION 3.43. Amends Sec. 15(a) and (c), Article 4413(29c),
V.T.C.S., by making conforming changes to refer to the commission
instead of the agency. Makes other conforming changes.
SECTION 3.44. Amends Sec. 16, Article 4413(29c), V.T.C.S., by
making conforming changes to refer to the commission instead of the
agency.
SECTION 3.45. Amends Sec. 17, Article 4413(29c), V.T.C.S., by
making conforming changes to refer to the commission instead of the
agency.
SECTION 3.46. Amends Sec. 18(a)-(d), Article 4413(29c), V.T.C.S.,
by making conforming changes to refer to the commission instead of
the commissioner.
SECTION 3.47. Amends Sec. 22, Article 4413(29c), V.T.C.S., by
making conforming changes to refer to the commission instead of the
agency.
SECTION 3.48. Amends Sec. 23(a), Article 4413(29c), V.T.C.S., by
making conforming changes to refer to the commission instead of the
commissioner.
SECTION 3.49. Amends Sec. 24(a) and (b), Article 4413(29c),
V.T.C.S., by making conforming changes to refer to the commission
instead of the commissioner and agency.
SECTION 3.50. Amends Sec. 25 and 26, Article 4413(29c), V.T.C.S.,
by making conforming changes to refer to the commission instead of
the agency and commissioner.
SECTION 3.51. Repeals the following laws:
(1) Section 11(b)(4), Education Code, as amended by Chapter
812, Acts of the 71st Legislature, Regular Session,
1989; and
(2) Section 32.22, Education Code.
ARTICLE 4. TRANSITION; EMERGENCY
SECTION 4.01. Requires that each program listed in Section 302.021,
Labor Code, as added by Section 1.03 of this Act, is transferred to
the jurisdiction of the Texas Employment Commission on the
effective date of this Act. A reference in a law or administrative
rule to the agency that administered a program listed in that
section before the effective date of the Act means the Texas
Employment Commission.
SECTION 4.02. (a) Establishes a transition oversight committee to
supervise the transition of programs consolidated in Sec. 1.03 of
this Act. Sets forth the composition of the committee.
(b) Establishes the representative of the governor as the
presiding officer of the committee.
(c) Requires each state agency affected by the consolidation
to cooperate with the committee and the Texas Employment
Commission in formulating and implementing a transition plan.
(d) Requires the committee to appoint a full-time staff person
to assist in implementing the duties of the committee and
require each affected agency to develop a transition plan and
interim operating budget.
(e) Allows the committee to adopt interim rules and procedures
as necessary to implement this section, and transfer staff
from the affected agencies to the committee to assist the
committee in the implementation of its duties.
(f) Requires the committee to hold its first meeting no later
than the 30th day after the effective date of this Act.
(g) Sunsets this section and abolishes the committee January
1, 1996.
SECTION 4.03. (a) Persons serving as coordinator, director,
manager, or other analogous officer for a program consolidated
under this Act may continue to serve in that capacity until January
1, 1996, but shall report to the Texas Employment Commission as of
the effective date of this Act.
(b) Requires the commission to appoint persons qualified for
service to positions affected by subsection (a) by January 1,
1996. A person serving under Subsection (a) is eligible for
appointment.
(c) States that a person serving as a member of the commission
on the day before the effective date of the Act may continue
to serve until the end of the term to which the member was
originally appointed.
(d) States that a person serving as the agency administrator
of the commission on the day before the effective date of this
Act is eligible for appointment as executive director of the
commission. To serve as executive director, the person must
comply with the bond requirement adopted under Section
301.041(c), Labor Code, as added by this Act, not later than
January 1, 1996.
SECTION 4.04. (a) States this Act conforms Section 305.021(a) and
(b), Labor Code, as added by this Act, to changes made by Section
1, Chapter 183, Acts of the 73rd Legislature, Regular Session,
1993.
(b) Repeals Section 1, Chapter 183, Acts of the 73rd
Legislature, Regular Session, 1993.
SECTION 4.05. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
GOVERNANCE STRUCTURE:
H.B. 1349 created a new Texas Workforce Development Department.
The commissioner of the department would be nominated by the
Governor, off a list of candidates provided by the Texas Employment
Commission, and confirmed by the Texas Senate. The Commissioner
would serve a two-year term. Twenty-one job training programs are
consolidated into the department under the original bill.
The substitute consolidates the same programs, with the exception
of the Smart Jobs Fund, under the Texas Employment Commission. The
commission will consist of at least two divisions, the division of
unemployment compensation and the division of workforce
development. Commissioner of T.E.C. are nominated by the Governor,
and confirmed by the Senate. One commissioner represents
employers, one represents employees, and one represents the general
public. Commissioners serve staggered, six year term.
PURPOSE:
The purpose of the creation of the Texas Workforce Development
Department in H.B. 1349 is as follows:
The Texas Workforce Development Department is a state agency
created to administer workforce training and service in this
state, in particular through the consolidation of job
training, employment, and employment-related educational
programs conducted by this state.
The new purpose of the Texas Employment Commission under the
substitute is as follows:
The Texas Employment Commission is a state agency established
to administer the unemployment compensation insurance program
in this state and to operate an integrated workforce
development system in this state, in particular through the
consolidation of job training, employment, and employment-related educational programs in this state.
GOALS:
The duties of the Texas Workforce Development Department under H.B.
1349 are as follows:
The department shall meet the needs of:
(1) the businesses of this state for a highly
skilled and productive workforce;
(2) the workers of this state for education,
skills training, and labor market information
to enhance their ability to be employed and to
attain a decent standard of living; and
(3) the taxpayers of this state to ensure that tax
revenues for workforce development are spent
effectively and efficiently.
The goals of the Texas Employment Commission under the substitute
are substantially the same, with one addition, and read as follows:
The commission shall meet the needs of:
(1) the businesses of this state for a highly
skilled and productive workforce;
(2) the workers of this state for education,
skills training, and labor market information
to enhance their ability to be employed and to
attain a decent standard of living;
(3) the communities of this state to provide
economic incentive programs for job creation,
attraction and expansion; and
(4) the taxpayers of this state to ensure that tax
revenues for workforce development are spent
effectively and efficiently.
DUTIES:
H.B. 1349 listed 10 specific duties of the commissioner. The
substitute outlines 15 specific duties of the commission. The only
duty mandated in H.B. 1349 that is not in the substitute is
"promote the adoption of high skill, high performance work
organizations in this state."
The following is a list of the duties mandated in the substitute
that are not in H.B. 1349 are the commission shall:
(1) to the extent feasible under federal law, consolidate the
administrative and programmatic functions of the programs
under the authority of the commission to achieve efficient and
effective delivery of service;
(4) appoint and prescribe the duties of all officers,
administrators, accountants, attorneys, experts, and other
employees as necessary in the performance of the division's
duties;
(5) delegate authority to persons appointed under this section
as the commission considers reasonable and proper for
effective administration of the division;
(6) adopt rules in accordance with Chapter 2001, Government
Code, as necessary for the proper administration of the
division;
(7) bond any person who handles money or signs checks for the
division;[and]
(14) prepare and submit an annual agency performance report to
the governor, the legislature, and the council.
PROGRAMS CONSOLIDATED:
The substitute consolidates the same programs as the original with
the exception of the Smart Jobs Fund, Employer New Hire Reporting,
and Workforce Development Program under Section 4.01, Workforce and
Economic Competitiveness Act (Local Workforce Boards).
The substitute also consolidates programs not consolidated in the
original bill including, veterans employment programs, employment
related child care services, and driver and traffic safety
(Commercial Licenses).
SKILLS DEVELOPMENT FUND:
The original bill reserved space for the Skills Development Fund.
The substitute provides language on the fund and states the
purpose is to "remove administrative barriers that impede the
response of community and technical colleges to industry training
needs and to develop incentives for community and technical
colleges to provide customized training in a timely and efficient
manner." The substitute provides that the fund may be used by
community and technical colleges as start-up or emergency money for
job training programs which develop customized training programs
for businesses and trade unions, and sponsoring small and medium-sized business networks.
BLOCK GRANTS TO LOCAL AREAS:
The original bill reserved space for block grants to local
areas. The substitute states:
(a) The commission shall provide to the local workforce
development areas in which local workforce development
boards have been formed, through a block grant process,
not less than 80 percent of the funds available to the
commission for workforce training and services, unless
superseded by federal or state law.
(b) In the case of funds that, as of May 31, 1995, are
allocated to this state or regions of this state through
the applications of established formulas, the commission
shall allocate amounts across the state using the same
formula that was used to provide the funds to the state
or that region.
(c) In the case of funds that are not allocated by
formula to this state or regions of this state, the
commission shall develop a need-based formula that will
equitably allocate funds among local workforce
development areas throughout this state.
(d) In any state fiscal biennium, the commission may
not allocate to a local workforce development area less
than 90 percent or more than 125 percent of the amount
received by that area during the preceding state fiscal
biennium.
(e) In areas of the state not yet designated as local
workforce development areas or in areas of the state
that have been so designated but in which local
workforce development boards have not been formed, the
commission shall provide workforce training and services
in those areas to the extent allowed by federal law.
TEXAS COUNCIL ON WORKFORCE AND ECONOMIC DEVELOPMENT:
The original bill added the commissioner of the Workforce
Development Department to the list of members of the Council.
Additionally it eliminated a few of the administrative duties of
the council and gave those duties to the commissioner.
The council currently has 40 members. The substitute reduces the
number of council members to 19. The commissioners of education,
higher education, health and human services, have all been replaced
by chair of their respective boards. The employee and employer
representatives on the Texas Employment Commission will both sit on
the board, and the administrator of T.E.C. is removed. The
executive director of the Department of Commerce is removed.
Additionally the terms of the non-ex officio members are reduced to
four years, with half the council members' terms expiring in each
odd-numbered year.
The substitute sets up the General Service Commissions as the
fiscal agent for the council.
CREATION OF LOCAL WORKFORCE DEVELOPMENT BOARDS:
The substitute states that "[t]he authority granted under this
subsection does not give a local workforce development board any
direct authority or control over workforce funds and programs in
its workforce development area, other than programs funded through
that board." The substitute also exempts members or former members
of boards from being held personally liable for any claim, damage,
loss or repayment obligation of federal or state funds that arises
from this Act unless the act or omission that causes the claim,
damage, loss, or repayment obligation constitutes official
misconduct on the part of the board member, wilful disregard of the
requirements of this Act on the part of the board member, or gross
negligence on the part of the board member.
SKILL STANDARDS BOARDS:
The substitute creates a Skill Standards Board to advise "the
council and the governor on the development of a statewide system
of industry-defined and industry-recognized skill standards and
credentials for all major skilled occupations that:
(1) provide strong employment and earnings opportunities
in this state; and
(2) require less than a baccalaureate degree.
The board will be composed of 11 members.
CONFORMING AMENDMENTS:
The substitute contains numerous conforming amendments, which were
not in the original bill, to several codes in order to place the
program consolidated under the Texas Employment Commission.
SUMMARY OF COMMITTEE ACTION
H.B. 1349 was considered by the committee in a public hearing on
April 3, 1995. Testifying on the bill was John Sharp, Texas
Comptroller of Public Accounts; William Grossenbacher, representing
the Texas Employment Commission; Brenda Arnett, representing the
Texas Department of Commerce; Jim Boyd, representing the Texas
Department of Commerce; Dane Harris, representing the Texas
Association of Business & Chambers of Commerce; Curtis Cleveland,
representing the Texas Economic Development Council; Walter
Diggles, representing himself; Paul Edwards, representing the
Middle Rio Grande Development Council; John D. Baker, representing
himself and the Texas Association of Private Industry Councils;
Charles Dunnam, representing himself and the Texas Quality Work
Force Planning Directors Association; Cynthia Mugerauer,
representing the Texas Council on Workforce and Economic
Competitiveness; and Bill Lofland, representing himself and the
Texas Association of Regional Councils. Testifying in favor of the
bill was Joe Gunn, representing the Texas AFL-CIO; Tom Frost,
representing the Texas Council on Workforce and Economic
Competitiveness; Paul Ellis, representing himself and the Texas
Council on Workforce and Economic Competitiveness; Chris Shields,
representing the Corpus Christi Business Alliance; Sandy Dochen,
representing the Greater Austin Chamber of Commerce; Ronnie
Glasslock, representing himself and the Texas Association of
Community Colleges; Kurt Jobe, representing the Mayors United on
Safety, Crime and Law Enforcement; and Pat Patton, representing the
Texas Workforce Directors Association. Testifying against the bill
was Joe McComb, representing himself; Judge Wayne Whiteaker,
representing the Private Industry Council - South Plains Rural Work
Force Development Area; Marcia Strieber, representing the Workforce
Development Board of Central Texas; and Susan Kamas, representing
herself. H.B. 1349 was left pending in committee.
H.B. 1349 was reconsidered by the committee in a public hearing on
April 18, 1995. The committee considered a complete substitute for
H.B. 1349. Testifying on the bill was William Grossenbacher,
representing the Texas Employment Commission; and Paul Edwards,
representing the Middle Rio Grande Development Council. Testifying
in favor of the bill was Jerry A. Walzel, representing the Texas
Citrus & Vegetable Association; James R. Stephens, representing the
Mission Petroleum Carriers, Inc; Jose Moncada, representing himself
as an employee of Valero Refining; Max Davis, representing Texas
Instruments, Inc; Earl B. Greenstreet, representing himself as an
employee of United Parcel Service; Bob J. Turner, representing
himself as an employee of America Rockdale Operations; Steve Hiner,
representing himself as a Human Resources Manager for Hampshire
Chemical Corporation; Grace Cole, representing herself as an
employee of Scott & White Hospital; Lavern D. Slaughter,
representing herself as a Recruiting Manager for the City of
Garland; Vicki Minden, representing herself as someone in Human
Resources Management; Sylvia D. Murray, representing Tech Spray,
Inc.; John N. Havard, representing Lufkin Industries, Inc.; Jill
Shaw Binder, representing herself as Regional Director of Cities in
Schools; Pearl Garza Fracchia, representing herself as Area Manager
- Educational Relations for Southwestern Bell Telephone; Bryan
Rose, representing himself as a Human Resource Manager; Joe D.
Gunn, representing the Texas AFL-CIO; and James J. Kaster,
representing himself as the Commissioner of the Texas Employment
Commission. No one testified against the bill. One amendment was
offered to the substitute. The one amendment was adopted without
objection. The substitute as amended was adopted by record vote of
5 ayes, 2 nays, 0 pnv, 2 absent. H.B. 1349 was reported favorably
as substituted with the recommendation that it do pass and be
printed, by record vote of 5 ayes, 2 nays, 0 pnv, 2 absent.