BILL ANALYSIS


                                                        H.B. 2858
                                           By: Raymond (Montford)
                                             Economic Development
                                                          5-27-95
                              Senate Committee Report (Unamended)
BACKGROUND

In 1993, the Texas Legislature passed S.B. 130 which created the
smart jobs fund program to help businesses provide training for
their workers for the creation of a high skill, high quality Texas
workforce.

PURPOSE

As proposed, H.B. 2858 expands the scope of the smart jobs fund and
the employment training program created under the fund.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Chapter 481J, Government Code, as
follows:

                 SUBCHAPTER J.  SMART JOBS FUND

SECTION 2. Amends Section 481.151, Government Code, to define
"emerging occupation," "manufacturing occupation," and "smart job." 
Redefines "family wage job" and "provider."  Deletes the definition
of "targeted industry."  Makes conforming and nonsubstantive
changes.

SECTION 3. Amends Sections 481.152(a) and (b), Government Code, to
provide that the smart jobs fund is created as a business
incentive, rather than work force development program, which
provides priority for funding to projects that offer family wage
jobs.

SECTION 4. Amends Section 481.155, Government Code, as follows:

     (a) and (b) Make no changes.
     
     (c) Prohibits a grant from being awarded under this section
     unless a participating employer certifies that, by the end of
     the project, wages will be greater than 75, rather than 66
     2/3, percent of the state average weekly wage.  Requires the
     employer to certify a five percent increase in the amount of
     the wage for the date on which the project ends, for a job
     existing on the date that the project is scheduled to begin
     that already pays a wage at or greater than 75 percent of the
     state average weekly wage.
     
     (d) Authorizes an employer to request a modification of a
     requirement imposed under Subsection (c) if other factors
     occur that the executive director determines reasonable to
     warrant a modification.
     
     (e) Prohibits grants awarded as a result of modified
     requirements from exceeding five, rather than 10, percent of
     the total dollar amount of grants awarded under the program
     for that year.
     
     (f) Redesignates existing Subsection (e).
     
     (g) Prohibits a grant from being awarded for a project if the
     project will impair existing contracts for services or
     collective bargaining agreements to which the grant
     application is subject at the time of the application.
     
     (h) Redesignates existing Subsection (g).
     
SECTION 5. Amends Sections 481.156(a) and (e), Government Code, to
authorize employers to apply for a grant to secure training for
demand occupations, emerging occupations, or manufacturing
occupations in a particular industry, and requires the executive
director to act on a completed application not later than the 30th
business day, rather than day, after the application is filed. 
Makes conforming changes.

SECTION 6. Amends Section 481.157(b), Government Code, to authorize
the policy board to adopt rules modifying certain requirements for
employers with fewer than 100, rather than 50, employees.

SECTION 7. Amends Section 481.159(b), Government Code, to prohibit
total administrative costs from exceeding 10 percent of the
project's direct training-related costs, instead of its
expenditures.

SECTION 8. Amends Section 481.160(b), Government Code, to require
the annual report to include for that fiscal year, among other
information, the wage levels of trainees entering or returning to
the work force, broken down by current employees undergoing
retraining and new hires, at three months and one year after the
conclusion of their training.  Deletes other information required
in the annual report of the executive director to the governor. 
Makes a nonsubstantive change.

SECTION 9. Effective date: September 1, 1995.
           Makes application of this Act prospective.

SECTION 10.    Emergency clause.