74R11086 E
          By Oliveira                                           H.B. No. 1349
          Substitute the following for H.B. No. 1349:
          By Oliveira                                       C.S.H.B. No. 1349
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the consolidation of certain programs regarding
    1-3  unemployment compensation, job training, labor and employment, and
    1-4  workforce development, the creation of a statewide workforce
    1-5  development system, and the operations of the Texas Employment
    1-6  Commission.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8                   ARTICLE 1.  WORKFORCE DEVELOPMENT
    1-9        SECTION 1.01.  The heading of Subtitle B, Title 4, Labor
   1-10  Code, is amended to read as follows:
   1-11          SUBTITLE B.  TEXAS EMPLOYMENT COMMISSION; WORKFORCE
   1-12                       DEVELOPMENT; <ADDITIONAL>
   1-13                          EMPLOYMENT SERVICES
   1-14        SECTION 1.02.  (a)  Chapter 301, Labor Code, is repealed.
   1-15        (b)  Chapter 202, Labor Code, is moved from Subtitle A, Title
   1-16  4, Labor Code, to Subtitle B of that title, redesignated as Chapter
   1-17  301, Labor Code, and amended to read as follows:
   1-18            CHAPTER 301 <202>.  TEXAS EMPLOYMENT COMMISSION
   1-19               SUBCHAPTER A.  ORGANIZATION OF COMMISSION
   1-20        Sec. 301.001.  PURPOSE; AGENCY GOALS; DEFINITION.  (a)  The
   1-21  Texas Employment Commission is a state agency established to
   1-22  administer the unemployment compensation insurance program in this
   1-23  state and to operate an integrated workforce development system in
   1-24  this state, in particular through the consolidation of job
    2-1  training, employment, and employment-related educational programs
    2-2  available in this state.
    2-3        (b)  The commission shall meet the needs of:
    2-4              (1)  the businesses of this state for the development
    2-5  of a highly skilled and productive workforce;
    2-6              (2)  the workers of this state for an efficient
    2-7  unemployment compensation system, and for education, skills
    2-8  training, and labor market information to enhance their
    2-9  employability, earnings, and standard of living;
   2-10              (3)  the communities of this state to provide economic
   2-11  incentive programs for job creation, attraction, and expansion; and
   2-12              (4)  the taxpayers of this state to ensure that tax
   2-13  revenues for workforce development are spent efficiently and
   2-14  effectively.
   2-15        (c)  In this title, "commission" means the Texas Employment
   2-16  Commission.
   2-17        Sec. 301.002 <202.001>.  Membership Requirements.  (a)  The
   2-18  commission <Texas Employment Commission> is composed of three
   2-19  members:
   2-20              (1)  one of whom shall be a representative of labor;
   2-21              (2)  one of whom shall be a representative of
   2-22  employers; and
   2-23              (3)  one of whom shall be impartial and shall represent
   2-24  the public.
   2-25        (b)  The governor shall appoint the members and make the
   2-26  appointments without regard to the race, creed, sex, religion, or
   2-27  national origin of the appointees.
    3-1        Sec. 301.003 <202.002>.  Member Restrictions.  (a)  A member
    3-2  of the commission may not engage in any other business, vocation,
    3-3  or employment during the member's term on the commission.
    3-4        (b)  The public member of the commission may not be an
    3-5  officer, employee, or paid consultant of a labor-oriented or
    3-6  employer-oriented trade association while the member serves on the
    3-7  commission.
    3-8        Sec. 301.004 <202.003>.  Effect of Lobbying Activity.  A
    3-9  person who is required to register as a lobbyist under Chapter 305,
   3-10  Government Code, may not serve as a member of the commission or act
   3-11  as the general counsel to the commission while so registered.  If
   3-12  the person ceases to engage in lobbying activity and files a notice
   3-13  of termination as prescribed by Section 305.008, Government Code,
   3-14  the person may serve as a member of the commission or act as the
   3-15  general counsel to the commission.
   3-16        Sec. 301.005 <202.004>.  Terms; Vacancy.  (a)  Members of the
   3-17  commission are appointed for staggered six-year terms, with one
   3-18  member's term expiring on February 1 of each odd-numbered year.
   3-19        (b)  A member appointed to fill a vacancy shall hold office
   3-20  for the remainder of that term.
   3-21        Sec. 301.006 <202.005>.  Chairman.  The member representing
   3-22  the public is the chairman of the commission.
   3-23        Sec. 301.007 <202.006>.  Removal of Commission Members.
   3-24  (a)  It is a ground for removal from the commission by impeachment
   3-25  that a member:
   3-26              (1)  during any 60-day period, is absent from each
   3-27  commission meeting for which the member received at least 48 hours'
    4-1  notice;
    4-2              (2)  is unable to discharge the member's duties for the
    4-3  remainder of the term for which the member was appointed because of
    4-4  illness or other disability; or
    4-5              (3)  violates a prohibition established by Section
    4-6  301.003 <202.002> or 301.004 <202.003>.
    4-7        (b)  The validity of an action of the commission is not
    4-8  affected by the fact that it was taken when a ground for the
    4-9  removal of a member of the commission existed.
   4-10        Sec. 301.008.  APPLICATION OF SUNSET ACT.  The Texas
   4-11  Employment Commission is subject to Chapter 325, Government Code
   4-12  (Texas Sunset Act).  Unless continued in existence as provided by
   4-13  that chapter, the commission is abolished September 1, 1999.
   4-14        Sec. 301.009.  COMMISSION DIVISIONS.  (a)  The commission
   4-15  shall have:
   4-16              (1)  a division of unemployment compensation; and
   4-17              (2)  a division of workforce development.
   4-18        (b)  In addition to the divisions listed in Subsection (a),
   4-19  the executive director, with the approval of the commission, may
   4-20  establish additional divisions within the commission for effective
   4-21  administration and performance of commission functions.
   4-22        (c)  The commission shall appoint the directors of the
   4-23  divisions of the commission.  The directors serve at the pleasure
   4-24  of the commission.
   4-25           (Sections 301.010-301.020 reserved for expansion
   4-26          <Sections 202.007-202.020 reserved for expansion>
   4-27               SUBCHAPTER B.  COMMISSION ADMINISTRATION
    5-1        Sec. 301.021 <202.021>.  Donations.  The commission may
    5-2  accept a donation of services, money, or property from an
    5-3  organization listed in Section 501(c)(3) of the Internal Revenue
    5-4  Code of 1986 (26 U.S.C. Section 501(c)(3)) that the commission
    5-5  determines furthers the lawful objectives of the commission.  The
    5-6  donation must be accepted in an open meeting by a majority of the
    5-7  voting members of the commission and must be reported in the public
    5-8  records of the commission with the name of the donor and the
    5-9  purpose of the donation.
   5-10        Sec. 301.022 <202.022>.  Audit.  The financial transactions
   5-11  of the commission are subject to audit by the state auditor in
   5-12  accordance with Chapter 321, Government Code.
   5-13        Sec. 301.023 <202.023>.  Complaints.  (a)  The commission
   5-14  shall keep an information file about each complaint filed with the
   5-15  commission that relates to a service provided by the commission.
   5-16        (b)  If a written complaint is filed with the commission that
   5-17  relates to a service provided by the commission, the commission, at
   5-18  least quarterly and until final disposition of the complaint, shall
   5-19  notify the parties to the complaint of the status of the complaint.
   5-20        Sec. 301.024 <202.024>.  Official Seal; Use of Facsimiles.
   5-21  (a)  The commission has an official seal.  A court shall take
   5-22  judicial notice of the seal.
   5-23        (b)  The commission may execute, certify, authenticate, or
   5-24  sign, with a facsimile signature and seal, any instrument
   5-25  authorized under this subtitle to be issued by the commission or by
   5-26  an authorized representative of the commission, including a claim,
   5-27  statement, or audit report relating to the establishment or
    6-1  collection of delinquent contributions or penalties.
    6-2        Sec. 301.025 <202.025>.  State Advisory Council; Local
    6-3  Councils.  (a)  The commission may appoint a state advisory council
    6-4  composed of 15 persons representing employers, employees, and the
    6-5  public.  Each member of the commission may appoint five persons to
    6-6  the advisory council.
    6-7        (b)  The advisory council shall meet regularly.
    6-8        (c)  As permitted by commission rule, a member of the
    6-9  advisory council is entitled to reimbursement for necessary travel
   6-10  and subsistence expenses and to a per diem allowance for attending
   6-11  meetings of the council, but is not a state employee for any
   6-12  purpose.
   6-13        (d)  The commission shall determine the composition and
   6-14  prescribe the duties of the advisory council.
   6-15        (e)  The advisory council shall prepare an annual report
   6-16  describing the advisory council's work during the preceding year
   6-17  and detailing any recommendations.
   6-18        (f)  The commission may appoint and pay local advisory
   6-19  councils and consultants under the same conditions as provided in
   6-20  this section for the state advisory council.
   6-21           (Sections 301.026-301.040 reserved for expansion
   6-22          <Sections 202.026-202.040 reserved for expansion>
   6-23                  SUBCHAPTER C.  EXECUTIVE DIRECTOR;
   6-24                 AGENCY <ADMINISTRATOR AND> PERSONNEL
   6-25        Sec. 301.041 <202.041>.  EXECUTIVE DIRECTOR; AGENCY
   6-26  <ADMINISTRATOR;> PERSONNEL.  (a)  The commission shall appoint an
   6-27  executive director <agency administrator> on the basis of merit to
    7-1  administer the daily operations of the commission and may prescribe
    7-2  any specific qualifications for the position of executive director
    7-3  <agency administrator> that are necessary to comply with federal
    7-4  law.  The position of executive director <agency administrator> is
    7-5  subject to the merit principles of Chapter 655, Government Code
    7-6  <492, Acts of the 69th Legislature, Regular Session, 1985 (Article
    7-7  6252-11g, Vernon's Texas Civil Statutes)>.
    7-8        (b)  A reference in this code or another law to the "agency
    7-9  administrator" of the commission means the executive director of
   7-10  the commission.
   7-11        (c)  The executive director shall execute an official bond in
   7-12  an amount not to exceed $50,000, conditioned on the faithful
   7-13  performance of the duties of the office as prescribed by the laws
   7-14  of this state and by Chapter 653, Government Code.
   7-15        (d)  The executive director <agency administrator> may:
   7-16              (1)  appoint and prescribe the powers and duties of all
   7-17  officers, accountants, attorneys, experts, and other persons as
   7-18  necessary in the performance of the commission's duties;
   7-19              (2)  delegate authority to a person appointed under
   7-20  this section as the executive director <agency administrator>
   7-21  considers reasonable and proper for the effective administration of
   7-22  this title <subtitle>; and
   7-23              (3)  bond any person that handles money or signs checks
   7-24  under this title <subtitle>.
   7-25        (e) <(c)>  The executive director <agency administrator> or a
   7-26  person designated by the executive director <agency administrator>
   7-27  shall develop a system of annual performance evaluations based on
    8-1  measurable job tasks.  All merit pay for commission employees must
    8-2  be based on the system established under this subsection.
    8-3        Sec. 301.042 <202.042>.  ACCESS TO CERTAIN CRIMINAL HISTORY
    8-4  RECORD INFORMATION<; OFFENSE; PENALTY>.  (a)  The commission may
    8-5  request <and receive criminal history record information maintained
    8-6  by the Department of Public Safety, the Federal Bureau of
    8-7  Investigation Identification Division, or another law enforcement
    8-8  agency to investigate an applicant for employment in a security
    8-9  sensitive position.>
   8-10        <(b)  The commission shall adopt a uniform method of
   8-11  obtaining criminal history information that requires the commission
   8-12  to submit to the Department of Public Safety or another law
   8-13  enforcement agency either a complete set of fingerprints or the
   8-14  complete name, driver's license number, and social security number
   8-15  of the person being investigated.  If the commission does not
   8-16  obtain relevant information from state or local law enforcement
   8-17  agencies in response to a submission under this subsection, the
   8-18  commission may submit either the fingerprints or the required
   8-19  information to the Federal Bureau of Investigation Identification
   8-20  Division.>
   8-21        <(c)  The commission may request> an applicant for a security
   8-22  sensitive position to provide either a complete set of fingerprints
   8-23  or the applicant's complete name, driver's license number, and
   8-24  social security number.  The commission may deny employment in a
   8-25  security sensitive position to an applicant who fails to provide
   8-26  the requested fingerprints or information.
   8-27        (b) <(d)  All information received by the commission under
    9-1  this section is privileged and confidential and is for the
    9-2  exclusive use of the commission.  The information may not be
    9-3  released or otherwise disclosed to any other person except on court
    9-4  order or with the written consent of the person being investigated.>
    9-5        <(e)  After the commission hires an applicant for a security
    9-6  sensitive position, the commission shall seal the criminal history
    9-7  record information regarding the applicant and shall deliver the
    9-8  information to the custody of the agency administrator or the
    9-9  person designated by the agency administrator, who shall maintain
   9-10  the information as provided by commission rule.  The commission
   9-11  shall destroy the criminal history record information of an
   9-12  applicant who is not hired.>
   9-13        <(f)  The commission shall adopt rules governing the custody
   9-14  and use of information obtained under this section.>
   9-15        <(g)>  The commission may use information obtained under this
   9-16  section only to evaluate an applicant for employment in a security
   9-17  sensitive position.  A security sensitive position must be so
   9-18  identified in the job description and in the announcement of the
   9-19  position.
   9-20        (c) <(h)>  In this section, "security sensitive position"
   9-21  means a position of employment that requires as an incident of the
   9-22  employment:
   9-23              (1)  the performance of duties in:
   9-24                    (A)  the automated data processing, controller,
   9-25  or fiscal department; or
   9-26                    (B)  a position designated to handle receipts or
   9-27  disbursements of cash in a local or regional office;
   10-1              (2)  access to a computer terminal, if the information
   10-2  available from the terminal is required by law to be confidential;
   10-3              (3)  access to a master key for access to the premises
   10-4  other than during regular working hours; or
   10-5              (4)  the performance of duties considered to be
   10-6  security sensitive by the state auditor or the Inspector General of
   10-7  the United States Department of Labor.
   10-8        <(i)  A person commits an offense if the person releases or
   10-9  discloses any information received under this section in violation
  10-10  of Subsection (d).  An offense under this subsection is a Class A
  10-11  misdemeanor.>
  10-12        Sec. 301.043 <202.043>.  Standards of Conduct Information.
  10-13  The commission shall provide to its members and employees of the
  10-14  commission, as often as necessary, information regarding their
  10-15  responsibilities under applicable laws relating to standards of
  10-16  conduct for state officers or employees.
  10-17           (Sections 301.044-301.060 reserved for expansion
  10-18          <Sections 202.044-201.060 reserved for expansion>
  10-19        SUBCHAPTER D.  GENERAL POWERS AND DUTIES OF COMMISSION
  10-20        Sec. 301.061 <202.061>.  General Powers and Duties.  (a)  The
  10-21  commission shall administer this title <subtitle> and may adopt
  10-22  rules, make expenditures, require reports, conduct investigations,
  10-23  and take other action it considers necessary or suitable to fulfill
  10-24  that duty.
  10-25        (b)  The commission shall determine its own organization and
  10-26  methods of procedure in accordance with this title <subtitle>.
  10-27        Sec. 301.062 <202.062>.  Findings.  The commission shall make
   11-1  findings and determine issues under this title <subtitle> as
   11-2  necessary to administer this title <subtitle>.
   11-3        Sec. 301.063 <202.063>.  State and Federal Cooperation.
   11-4  (a)  The commission is designated as the agency of this state for
   11-5  implementation in this state of the Wagner-Peyser Act (29 U.S.C.
   11-6  Section 49 et seq.).
   11-7        (b)  In administering this title <subtitle> the commission
   11-8  shall:
   11-9              (1)  cooperate with the secretary under the Social
  11-10  Security Act (42 U.S.C.  Section 301 et seq.) to the fullest extent
  11-11  consistent with this title <subtitle>;
  11-12              (2)  make reports in the form and containing
  11-13  information required by the secretary and comply with provisions
  11-14  the secretary finds necessary to ensure that the reports are
  11-15  correct and verified;
  11-16              (3)  comply with the regulations prescribed by the
  11-17  secretary governing the expenditures of funds allotted and paid to
  11-18  the state under Title III of the Social Security Act (42 U.S.C.
  11-19  Section 501 et seq.) to assist in the administration of this title
  11-20  <subtitle>; and
  11-21              (4)  cooperate with any official or agency of the
  11-22  United States having powers or duties under the Wagner-Peyser Act
  11-23  (29 U.S.C. Section 49 et seq.) and take all actions necessary to
  11-24  secure to this state the benefits of that Act and necessary to
  11-25  perform the commission's duties under Subchapter F.
  11-26        (c)  The commission may provide reasonable cooperation to
  11-27  each agency of the United States charged with the administration of
   12-1  any unemployment insurance law.
   12-2        (d)  On request, the commission shall furnish to an agency of
   12-3  the United States responsible for the administration of public
   12-4  works or assistance through public employment the name, address,
   12-5  ordinary occupation, and employment status of each recipient of
   12-6  benefits and shall inform the agency of the recipient's right to
   12-7  further benefits under Subtitle A <this subtitle>.
   12-8        (e)  In this section, "secretary" means the United States
   12-9  secretary of labor.
  12-10        Sec. 301.064 <202.064>.  Interpreter Services; Bilingual
  12-11  Forms.  (a)  The commission shall provide language interpreters for
  12-12  agency programs through a comprehensive language services program
  12-13  for persons whose primary language is Spanish and may provide
  12-14  language interpreters through the program for agency programs for
  12-15  persons whose primary language is other than Spanish or English.
  12-16        (b)  The language services program must provide services,
  12-17  including translation services, both to employers and to employees
  12-18  or prospective employees.
  12-19        (c)  The commission shall print essential agency forms and
  12-20  instructional information in both English and Spanish.  A form
  12-21  shall be written in Spanish only when revised or when new or
  12-22  additional forms are printed or prepared.
  12-23        Sec. 301.065 <202.065>.  Annual Report.  (a)  As soon as
  12-24  practicable after the close of each fiscal year, the commission
  12-25  shall submit to the governor and the legislature a report on the
  12-26  administration and operation of the commission's activities under
  12-27  this title <subtitle> during the preceding fiscal year, including
   13-1  each recommendation of the commission for amendments to this title
   13-2  <subtitle>.
   13-3        (b)  The annual report must include:
   13-4              (1)  a balance sheet of the money in the compensation
   13-5  fund;
   13-6              (2)  the annual report prepared by the state advisory
   13-7  council under Section 301.025(e) <202.025(e)>;
   13-8              (3)  the commission's long-term and short-term
   13-9  objectives; and
  13-10              (4)  any other information requested by the legislature
  13-11  or the Legislative Budget Board.
  13-12        Sec. 301.066 <202.066>.  Publications.  (a)  The commission
  13-13  shall print:
  13-14              (1)  the text of Subtitle A <this subtitle>;
  13-15              (2)  the commission's rules; and
  13-16              (3)  the commission's annual report to the governor and
  13-17  the legislature.
  13-18        (b)  The commission shall prepare information describing the
  13-19  functions of the commission and the commission's procedures by
  13-20  which complaints are filed with and resolved by the commission.
  13-21        (c)  The commission shall make the information required to be
  13-22  printed or prepared under this section and any other material that
  13-23  the commission determines to be relevant and suitable for
  13-24  distribution available to the public and appropriate state
  13-25  agencies.
  13-26           (Sections 301.067-301.070 reserved for expansion
  13-27          <Sections 202.067-202.070 reserved for expansion>
   14-1           SUBCHAPTER E.  INVESTIGATIVE AND SUBPOENA POWERS
   14-2        Sec. 301.071 <202.071>.  Investigative and Subpoena Powers.
   14-3  (a)  In discharging duties imposed under Subtitle A <this
   14-4  subtitle>, an appeal tribunal established under Section 212.101, a
   14-5  member of the commission, or a representative authorized by the
   14-6  commission may:
   14-7              (1)  administer oaths;
   14-8              (2)  take depositions;
   14-9              (3)  certify to official acts; and
  14-10              (4)  issue subpoenas to compel the attendance of
  14-11  witnesses and the production of books, papers, correspondence,
  14-12  memoranda, and other records considered necessary as evidence in
  14-13  connection with a disputed claim or the administration of Subtitle
  14-14  A <this subtitle>.
  14-15        (b)  The commission's authority to conduct an investigation,
  14-16  assemble information, or require the submission of documentary or
  14-17  oral testimony is limited to the power necessary to properly
  14-18  administer Subtitle A <this subtitle>.
  14-19        (c)  Notwithstanding Section 154.004, Local Government Code,
  14-20  or any other law, the commission shall pay the fee of a sheriff or
  14-21  constable who serves a subpoena under this section.  The fee shall
  14-22  be paid from the commission's administrative funds, and the
  14-23  comptroller shall issue a warrant for the fee as directed by the
  14-24  commission.
  14-25        Sec. 301.072 <202.072>.  Enforcement of Subpoena; Offense;
  14-26  Penalties.  (a)  If a person is guilty of contumacy or refuses to
  14-27  obey a subpoena issued by a member of the commission or an
   15-1  authorized representative of the commission, a county or district
   15-2  court, on application by the commission or its authorized
   15-3  representative, may order the person to appear before a member of
   15-4  the commission, the commission, or its authorized representative to
   15-5  produce evidence or give testimony regarding the matter under
   15-6  investigation or in question.  Only a court within the jurisdiction
   15-7  where the commission conducts the inquiry or where the person is
   15-8  found, resides, or transacts business may issue the order.
   15-9        (b)  Failure to obey a court order issued under Subsection
  15-10  (a) is punishable as contempt.
  15-11        (c)  A person commits an offense if the person, without just
  15-12  cause, does not obey a subpoena of the commission.  An offense
  15-13  under this subsection is punishable by a fine of not less than
  15-14  $200, by confinement for not more than 60 days, or by both fine and
  15-15  confinement.  Each day of violation constitutes a separate offense.
  15-16        Sec. 301.073 <202.073>.  Self-Incrimination.  (a)  In any
  15-17  cause or proceeding before the commission, a person is not excused
  15-18  from attending and testifying, from producing books, papers,
  15-19  correspondence, memoranda, and other records, or from obeying a
  15-20  subpoena of the commission, a member of the commission, or a
  15-21  representative of the commission on the ground that the testimony
  15-22  or evidence, documentary or otherwise, may tend to incriminate the
  15-23  person or subject the person to a penalty or forfeiture.
  15-24        (b)  A person may not be prosecuted or subjected to penalty
  15-25  or forfeiture for or because of a transaction or thing for which
  15-26  the person is compelled to testify or produce evidence after having
  15-27  claimed a privilege against self-incrimination except for perjury.
   16-1        Sec. 301.074 <202.074>.  Defamation.  An oral or written
   16-2  statement made to the commission or to an employee of the
   16-3  commission in connection with the discharge of the commission's or
   16-4  the employee's duties under Subtitle A <this subtitle> may not be
   16-5  the basis for an action for defamation of character.
   16-6           (Sections 301.075-301.080 reserved for expansion
   16-7          <Sections 202.075-202.080 reserved for expansion>
   16-8                   SUBCHAPTER F.  EMPLOYMENT SERVICE
   16-9        Sec. 301.081 <202.081>.  Texas State Employment Service.
  16-10  (a)  The Texas State Employment Service is a division of the
  16-11  commission.
  16-12        (b)  The commission, through the division, shall establish
  16-13  and maintain free public employment offices as necessary to perform
  16-14  the commission's duties under the Wagner-Peyser Act (29 U.S.C.
  16-15  Section 49 et seq.). The number and locations of the public
  16-16  employment offices shall be determined by the commission as
  16-17  necessary for the proper administration of this title <subtitle>.
  16-18        Sec. 301.082 <202.082>.  Employment Services Agreements.
  16-19  (a)  To establish and maintain public employment offices under this
  16-20  subchapter, the commission may enter into an agreement with any
  16-21  political subdivision of the state or with a private or nonprofit
  16-22  organization and, as a part of the agreement, accept money,
  16-23  services, or quarters as a contribution to the employment service
  16-24  account.
  16-25        (b)  To establish and maintain, or assist in the
  16-26  establishment and maintenance of, public employment offices within
  16-27  a county or other political subdivision of this state, the
   17-1  commissioners court of the county or the governing body of the
   17-2  other political subdivision may enter into agreements with the
   17-3  Texas State Employment Service on terms and conditions agreed to by
   17-4  the commissioners court or other governing body and the Texas State
   17-5  Employment Service.  The county or other political subdivision may
   17-6  employ means and appropriate and spend funds as necessary to
   17-7  establish and operate the public employment offices, and may
   17-8  provide, as part of the agreement, payment for:
   17-9              (1)  the rent of premises;
  17-10              (2)  services rendered;
  17-11              (3)  the purchase of equipment; and
  17-12              (4)  any other purpose considered advisable by the
  17-13  commissioners court or other governing body.
  17-14        (c)  The penalty provisions of Subtitle A <this subtitle>,
  17-15  including the provisions of Chapters 213 and 214, do not apply to
  17-16  an action or omission under Subsection (b).
  17-17           (Sections 301.083-301.090 reserved for expansion
  17-18          <Sections 202.083-202.090 reserved for expansion>
  17-19                        SUBCHAPTER G.  RECORDS
  17-20        Sec. 301.091 <202.091>.  Employee Records of Employing Unit;
  17-21  Offense; Penalty.  (a)  Each employing unit shall keep employment
  17-22  records containing information as prescribed by the commission and
  17-23  as necessary for the proper administration of this title
  17-24  <subtitle>.  The records are open to inspection and may be copied
  17-25  by the commission or an authorized representative of the commission
  17-26  at any reasonable time and as often as necessary.
  17-27        (b)  The commission may require from an employing unit sworn
   18-1  or unsworn reports regarding persons employed by the employing unit
   18-2  as necessary for the effective administration of this title
   18-3  <subtitle>.
   18-4        (c)  Employment information thus obtained or otherwise
   18-5  secured may not be published and is not open to public inspection,
   18-6  other than to a public employee in the performance of public
   18-7  duties, except as the commission considers necessary for the proper
   18-8  administration of this title <subtitle>.
   18-9        (d)  A person commits an offense if the person is an employee
  18-10  or member of the commission who violates any provision of this
  18-11  section.  An offense under this subsection is punishable by a fine
  18-12  of not less than $20 nor more than $200, confinement in jail for
  18-13  not more than 90 days, or both fine and confinement.
  18-14        Sec. 301.092 <202.092>.  Copies of Records.  (a)  The
  18-15  commission may furnish a photostatic or certified copy of a record
  18-16  in its possession to a person entitled to receive a copy of the
  18-17  record on application by the person.
  18-18        (b)  The commission shall charge a reasonable fee in an
  18-19  amount set by the commission for a copy of a record furnished under
  18-20  this section.
  18-21        Sec. 301.093 <202.093>.  Access to Records by Railroad
  18-22  Retirement Board.  (a)  The commission may make state records
  18-23  relating to the administration of Subtitle A <this subtitle>
  18-24  available to the Railroad Retirement Board.
  18-25        (b)  The commission may furnish the Railroad Retirement Board
  18-26  with copies of the records requested by the board at the board's
  18-27  expense.
   19-1        Sec. 301.094 <202.094>.  DESTRUCTION OF RECORDS.  The
   19-2  commission may destroy any of its records under safeguards that
   19-3  protect the confidential nature of the records if the commission:
   19-4              (1)  determines that the records no longer serve a
   19-5  legal, administrative, or other useful purpose; or
   19-6              (2)  has made an authentic reproduction of the records
   19-7  to be destroyed.
   19-8        SECTION 1.03.  Subtitle B, Title 4, Labor Code, is amended by
   19-9  adding new Chapters 302 and 303 to read as follows:
  19-10            CHAPTER 302.  DIVISION OF WORKFORCE DEVELOPMENT
  19-11                   SUBCHAPTER A.  GENERAL PROVISIONS
  19-12        Sec. 302.001.  DEFINITIONS.  In this chapter:
  19-13              (1)  "Council" means the Council on Workforce and
  19-14  Economic Competitiveness.
  19-15              (2)  "Director" means the director of the division.
  19-16              (3)  "Division" means the division of workforce
  19-17  development of the commission.
  19-18        Sec. 302.002.  GENERAL WORKFORCE DEVELOPMENT POWERS AND
  19-19  DUTIES OF COMMISSION.  (a)  The commission shall:
  19-20              (1)  to the extent feasible under federal law,
  19-21  consolidate the administrative and programmatic functions of the
  19-22  programs under the authority of the commission to achieve efficient
  19-23  and effective delivery of services;
  19-24              (2)  administer each program and implement
  19-25  corresponding federal and state legislation consolidated under the
  19-26  authority of the commission under this chapter and other applicable
  19-27  state law;
   20-1              (3)  determine the organization and methods of
   20-2  procedure of the division in accordance with applicable state and
   20-3  federal legislation;
   20-4              (4)  appoint and prescribe the duties of all officers,
   20-5  administrators, accountants, attorneys, experts, and other
   20-6  employees as necessary in the performance of the division's duties;
   20-7              (5)  delegate authority to persons appointed under this
   20-8  section as the commission considers reasonable and proper for the
   20-9  effective administration of the division;
  20-10              (6)  adopt rules in accordance with Chapter 2001,
  20-11  Government Code, as necessary for the proper administration of the
  20-12  division;
  20-13              (7)  bond any person who handles money or signs checks
  20-14  for the division;
  20-15              (8)  implement workforce training and services policies
  20-16  and programs, consistent with recommendations from the council and
  20-17  as approved by the governor;
  20-18              (9)  serve as an advocate at the state and federal
  20-19  levels for local workforce development boards;
  20-20              (10)  contract with local workforce development boards
  20-21  for program planning and service delivery;
  20-22              (11)  provide training and professional development
  20-23  services for division staff, local workforce development boards,
  20-24  and the staff of those boards;
  20-25              (12)  support research and demonstration projects
  20-26  designed to develop new programs and approaches to service
  20-27  delivery;
   21-1              (13)  provide technical assistance and support to local
   21-2  workforce development boards;
   21-3              (14)  prepare and submit an annual agency performance
   21-4  report to the governor, the legislature, and the council; and
   21-5              (15)  perform other functions and duties as may be
   21-6  required by law or assigned by the governor.
   21-7        (b)  The commission may adopt rules, make expenditures, enter
   21-8  into contracts with public, private, and nonprofit organizations,
   21-9  require reports, conduct investigations, and take other action the
  21-10  commission considers necessary or suitable to fulfill the
  21-11  division's administrative duties.
  21-12        (c)  The commission may obligate funds from the skills
  21-13  development fund in a manner consistent with the rules adopted for
  21-14  those programs.  The commission shall report to the governor, the
  21-15  legislature, and the council on a quarterly basis  regarding
  21-16  actions taken under this subsection.
  21-17           (Sections 302.003-302.020 reserved for expansion
  21-18              SUBCHAPTER B.  JURISDICTION OF DIVISION OF
  21-19                         WORKFORCE DEVELOPMENT
  21-20        Sec. 302.021.  CONSOLIDATION OF WORKFORCE DEVELOPMENT
  21-21  PROGRAMS.  (a)  The following job-training, employment, and
  21-22  employment-related educational programs are consolidated under the
  21-23  authority of the division:
  21-24              (1)  adult education programs under Section 11.18,
  21-25  Education Code;
  21-26              (2)  proprietary schools programs under Chapter 32,
  21-27  Education Code;
   22-1              (3)  apprenticeship programs under Chapter 33,
   22-2  Education Code;
   22-3              (4)  the employment incentive programs under Chapter
   22-4  31, Human Resources Code;
   22-5              (5)  the employment program under Chapter 101, Human
   22-6  Resources Code;
   22-7              (6)  the work and family policies program under Chapter
   22-8  81;
   22-9              (7)  job-training programs funded under the Job
  22-10  Training Partnership Act  (29 U.S.C. Section 1501 et seq.);
  22-11              (8)  the job counseling program for displaced
  22-12  homemakers under Chapter 304;
  22-13              (9)  the Communities in Schools program under Chapter
  22-14  305;
  22-15              (10)  the reintegration of offenders program under
  22-16  Chapter 306;
  22-17              (11)  the inmate employment counseling program under
  22-18  Section 499.051(f), Government Code;
  22-19              (12)  the continuity of care program under Section
  22-20  501.095, Government Code;
  22-21              (13)  a literacy program from funds available to the
  22-22  state under Section 481.026, Government Code;
  22-23              (14)  the driver and traffic safety program under the
  22-24  Texas Driver and Traffic Safety Education Act (Article 4413(29c),
  22-25  Vernon's Texas Civil Statutes);
  22-26              (15)  the community service program under the National
  22-27  and Community Service Act of 1990 (42 U.S.C. Section 12501 et
   23-1  seq.);
   23-2              (16)  the trade adjustment assistance program under
   23-3  Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
   23-4  seq.);
   23-5              (17)  the Job Opportunities and Basic Skills program
   23-6  under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section
   23-7  682); and
   23-8              (18)  the food stamp employment and training program
   23-9  authorized under 7 U.S.C. Section 2015(d).
  23-10        (b)  In addition to the programs consolidated under the
  23-11  authority of the division under Subsection (a), the division shall
  23-12  administer:
  23-13              (1)  programs in this state to enhance the employment
  23-14  opportunities of veterans of the armed services of the United
  23-15  States, including the employment program funded under Chapters 41
  23-16  and 42, Title 38, United States Code; and
  23-17              (2)  employment-related child-care services.
  23-18        (c)  To the extent permitted under federal law, the division
  23-19  shall administer the programs funded through the education
  23-20  coordination funds under Section 123, Job Training Partnership Act
  23-21  (29 U.S.C. Section 1533).
  23-22        Sec. 302.022.  CLIENT ACCESSIBILITY.  The director shall
  23-23  develop a uniform, statewide client application and enrollment
  23-24  process to determine an applicant's eligibility for workforce
  23-25  training and services funded through the department.
  23-26        Sec. 302.023.  INTEGRATION OF PROGRAM ADMINISTRATION.  (a)
  23-27  The director shall develop a plan for the integration of the
   24-1  administrative and program functions of the various job-training,
   24-2  education, and employment programs under the jurisdiction and
   24-3  authority of the division.
   24-4        (b)  The plan under Subsection (a) shall specify dates by
   24-5  which integration of the various functions must be completed.  To
   24-6  the extent possible, the plan shall be based on existing state and
   24-7  federal funds and designed to minimize the disruption of services
   24-8  at the local level.
   24-9        (c)  The plan under Subsection (a) shall be developed and
  24-10  submitted to the governor, the legislature, and the council not
  24-11  later than December 1, 1996.
  24-12        (d)  This section expires January 1, 1997.
  24-13           (Sections 302.024-302.040 reserved for expansion
  24-14              SUBCHAPTER C.  STATE-LOCAL PLANNING; LOCAL
  24-15                     WORKFORCE DEVELOPMENT BOARDS
  24-16        Sec. 302.041.  STATE-LOCAL PLANNING PROCESS.  The director
  24-17  shall design and implement a state-local planning process for
  24-18  workforce training and services provided through the programs under
  24-19  the jurisdiction of the division.
  24-20        Sec. 302.042.  REVIEW OF LOCAL PLANS; RECOMMENDATIONS.  The
  24-21  commission shall review the local workforce training and services
  24-22  plans developed under Section 4.05, Workforce and Economic
  24-23  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  24-24  Statutes), and shall make recommendations to the council regarding
  24-25  the implementation of those plans.
  24-26        Sec. 302.043.  TRAINING FOR LOCAL WORKFORCE DEVELOPMENT BOARD
  24-27  MEMBERS.  (a)  The division shall provide management and board
   25-1  development training for all members of local workforce development
   25-2  boards that includes information regarding the importance of
   25-3  high-quality workforces to the economic prosperity of their
   25-4  communities and encourages board members to be advocates in their
   25-5  communities for effective and efficient workforce development
   25-6  programs.  If a member of a local workforce development board does
   25-7  not receive training under this section before the 91st day after
   25-8  the date on which the member begins service on the board, the
   25-9  person is ineligible to continue serving on the board.
  25-10        (b)  Training may be provided directly by the division or by
  25-11  a third party that has demonstrated experience in providing
  25-12  training to local workforce development or similar boards.
  25-13        (c)  A local workforce development board shall provide at
  25-14  least 25 percent of the costs for the management and board
  25-15  development training of its members.
  25-16           (Sections 302.044-302.060 reserved for expansion
  25-17        SUBCHAPTER D.  ALLOCATION OF FUNDS; BLOCK GRANT PROGRAM
  25-18        Sec. 302.061.  ADMINISTRATION FUNDING.  Unless superseded by
  25-19  federal or other state law, the commission may use an amount not to
  25-20  exceed 20 percent of the amount of funds available to the
  25-21  commission for workforce training and services to implement
  25-22  state-level responsibilities, including administration, research
  25-23  and planning, system design and development, and training and
  25-24  technical assistance.
  25-25        Sec. 302.062.  BLOCK GRANTS TO LOCAL WORKFORCE DEVELOPMENT
  25-26  AREAS.  (a)  The commission shall provide to the local workforce
  25-27  development areas in which local workforce development boards have
   26-1  been formed, through a block grant process, not less than 80
   26-2  percent of the funds available to the commission for workforce
   26-3  training and services, unless superseded by federal or state law.
   26-4        (b)  In the case of funds that, as of May 31, 1995, are
   26-5  allocated to this state or regions of this state through the
   26-6  application of established formulas, the commission shall allocate
   26-7  amounts across the state using the same formula that was used to
   26-8  provide the funds to the state or that region.
   26-9        (c)  In the case of funds that are not allocated by formula
  26-10  to this state or regions of this state, the commission shall
  26-11  develop a need-based formula that will equitably allocate funds
  26-12  among local workforce development areas throughout this state.
  26-13        (d)  In any state fiscal biennium, the commission may not
  26-14  allocate to a local workforce development area less than 90 percent
  26-15  or more than 125 percent of the amount received by that area during
  26-16  the preceding state fiscal biennium.
  26-17        (e)  In areas of the state not yet designated as local
  26-18  workforce development areas or in areas of the state that have been
  26-19  so designated but in which local workforce development boards have
  26-20  not been formed, the commission shall provide workforce training
  26-21  and services in those areas to the extent allowed by federal law.
  26-22        Sec. 302.063.  WAIVERS.  The commission shall develop
  26-23  objective criteria for the granting of waivers allowed under this
  26-24  chapter.
  26-25                 CHAPTER 303.  SKILLS DEVELOPMENT FUND
  26-26        Sec. 303.001.  PURPOSE.  The purpose of this chapter is to
  26-27  remove administrative barriers that impede the response of
   27-1  community and technical colleges to industry training needs and to
   27-2  develop incentives for community and technical colleges to provide
   27-3  customized training in a timely and efficient manner.
   27-4        Sec. 303.002.  WAIVER.  (a)  The commission may review and
   27-5  recommend to the legislature the waiver of any requirements set
   27-6  forth in Title 3, Education Code, as they may apply to community
   27-7  and technical colleges, that impede the ability of such a college
   27-8  to develop in a timely manner customized training for demand
   27-9  occupations in particular industries, including statutes or
  27-10  regulations limiting costs that may be recovered by a community or
  27-11  technical college from state funds.
  27-12        (b)  A community or technical college may recover customized
  27-13  training costs incurred by the college if:
  27-14              (1)  the number and kind of jobs available for
  27-15  individuals receiving customized training is sufficient to support
  27-16  the customized training course offered by the college; and
  27-17              (2)  the wages available for individuals who
  27-18  successfully complete customized training at a community or
  27-19  technical college are comparable to the wages of individuals who
  27-20  received similar skills and training through the employer or
  27-21  private trainer.
  27-22        Sec. 303.003.  SKILLS DEVELOPMENT FUND.  (a)  To achieve the
  27-23  purposes of this chapter, the skills development fund is created
  27-24  from money in the general revenue fund.
  27-25        (b)  The skills development fund may be used by community and
  27-26  technical colleges as start-up or emergency funds for the following
  27-27  job-training purposes:
   28-1              (1)  developing customized training programs for
   28-2  businesses and trade unions; and
   28-3              (2)  sponsoring small and medium-sized business
   28-4  networks.
   28-5        (c)  The commission, or a person appointed by the commission
   28-6  who is knowledgeable in the administration of grants, is
   28-7  responsible for the distribution of money from the skills
   28-8  development fund.
   28-9        Sec. 303.004.  FUND REVIEW.  The Texas Higher Education
  28-10  Coordinating Board shall review all customized training programs
  28-11  biennially to verify that state funds are being used appropriately
  28-12  by community and technical colleges under this chapter.
  28-13        SECTION 1.04.  Chapter 302, Labor Code, is redesignated as
  28-14  Chapter 304, Labor Code, and amended to read as follows:
  28-15                    CHAPTER 304 <302>.  EMPLOYMENT
  28-16                  COUNSELING FOR DISPLACED HOMEMAKERS
  28-17        Sec. 304.001.  DEFINITION <302.001.  DEFINITIONS>.  In this
  28-18  chapter, "displaced<:>
  28-19              <(1)  "Commission" means the Texas Employment
  28-20  Commission.>
  28-21              <(2)  "Displaced> homemaker" means a person who:
  28-22              (1) <(A)>  has worked without pay as a homemaker for
  28-23  the person's family;
  28-24              (2) <(B)>  is not gainfully employed;
  28-25              (3) <(C)>  has had, or would have, difficulty in
  28-26  obtaining employment; and
  28-27              (4) <(D)>  has depended on:
   29-1                    (A) <(i)>  the income of a family member for
   29-2  financial support and has lost that income; or
   29-3                    (B) <(ii)>  government assistance as the parent
   29-4  of dependent children and is no longer eligible for that
   29-5  assistance.
   29-6        Sec. 304.002 <302.002>.  JOB COUNSELING PROGRAM.  (a)  The
   29-7  commission, through a special assistance job counseling program,
   29-8  shall:
   29-9              (1)  provide counseling for displaced homemakers;
  29-10              (2)  assist displaced homemakers in obtaining training
  29-11  and education; and
  29-12              (3)  place displaced homemakers in suitable employment.
  29-13        (b)  The counseling must:
  29-14              (1)  consider and build on the skills and experiences
  29-15  of the homemaker; and
  29-16              (2)  prepare the person, through employment counseling,
  29-17  to reenter the paid work force and develop and improve job skills.
  29-18        (c)  The commission shall design the program specifically for
  29-19  persons reentering the paid work force after a number of years as
  29-20  homemakers to enable them to assume or resume a valuable role in
  29-21  the paid work force commensurate with the homemakers' talents and
  29-22  abilities.
  29-23        (d)  The commission may not charge a fee for participation in
  29-24  the program by a displaced homemaker.
  29-25        Sec. 304.003 <302.003>.  PERSONNEL; OFFICE.  The commission
  29-26  shall use its personnel, services, facilities, and equipment to
  29-27  operate the job counseling program.
   30-1        Sec. 304.004 <302.004>.  COOPERATION BY STATE AGENCIES AND
   30-2  POLITICAL SUBDIVISIONS.  State agencies and political subdivisions
   30-3  of the state shall cooperate with the commission in obtaining
   30-4  suitable employment for displaced homemakers counseled by the
   30-5  commission.
   30-6        SECTION 1.05.  Chapter 216, Labor Code, is moved from
   30-7  Subtitle A, Title 4, Labor Code, to Subtitle B of that title,
   30-8  redesignated as Chapter 305, Labor Code, and amended to read as
   30-9  follows:
  30-10          CHAPTER 305 <216>.  COMMUNITIES IN SCHOOLS PROGRAM
  30-11                   SUBCHAPTER A.  GENERAL PROVISIONS
  30-12        Sec. 305.001 <216.001>.  DEFINITIONS.  In this chapter:
  30-13              (1)  "Agency" means the Central Education Agency.
  30-14              (2)  "Communities in Schools program" means an
  30-15  exemplary youth dropout prevention program.
  30-16        Sec. 305.002 <216.002>.  STATEWIDE OPERATION OF PROGRAM.  It
  30-17  is the intent of the legislature that the Communities in Schools
  30-18  program operate throughout this state.
  30-19              (Sections 305.003-305.010 <216.003-216.010>
  30-20                        reserved for expansion)
  30-21                  SUBCHAPTER B.  OPERATION OF PROGRAM
  30-22        Sec. 305.011 <216.011>.  STATE COORDINATOR.  The executive
  30-23  director <administrator> of the commission shall appoint a state
  30-24  coordinator for the Communities in Schools program.
  30-25        Sec. 305.012 <216.012>.  DUTIES OF STATE COORDINATOR.  The
  30-26  state coordinator shall:
  30-27              (1)  coordinate the efforts of social service
   31-1  organizations and agencies and of public school personnel to
   31-2  provide services to students who are at risk of dropping out of
   31-3  school or engaging in delinquent conduct;
   31-4              (2)  set standards for the Communities in Schools
   31-5  program;
   31-6              (3)  obtain information from each participating school
   31-7  district to determine necessary program changes;
   31-8              (4)  promote and market the program in communities in
   31-9  which the program is not established;
  31-10              (5)  help communities that want to participate in the
  31-11  program establish a local funding base; and
  31-12              (6)  train a program director for each participating
  31-13  community.
  31-14        Sec. 305.013 <216.013>.  AGENCY COOPERATION; MEMORANDUM OF
  31-15  UNDERSTANDING.  (a)  The agency and the commission shall work
  31-16  together to maximize the effectiveness of the Communities in
  31-17  Schools program.
  31-18        (b)  The agency and the commission shall develop and mutually
  31-19  agree to a memorandum of understanding to clearly define the
  31-20  responsibilities of each agency under this chapter.  The memorandum
  31-21  must address:
  31-22              (1)  the role of the commission in encouraging local
  31-23  business to participate in local Communities in Schools programs;
  31-24              (2)  the role of the agency in obtaining information
  31-25  from participating school districts;
  31-26              (3)  the use of federal or state funds available to the
  31-27  agency or the commission for programs of this nature; and
   32-1              (4)  other areas identified by the agency and the
   32-2  commission that require clarification.
   32-3        (c)  The agency and the commission shall adopt rules to
   32-4  implement the memorandum and shall update the memorandum and rules
   32-5  annually.
   32-6              (Sections 305.014-305.020 <216.014-216.020>
   32-7                        reserved for expansion)
   32-8      SUBCHAPTER C.  PARTICIPATION IN PROGRAM BY CERTAIN SCHOOLS
   32-9        Sec. 305.021 <216.021>.  DESIGNATION OF PARTICIPATING
  32-10  SCHOOLS.  (a)  The state coordinator, in cooperation with the
  32-11  program directors in the counties or cities in which a Communities
  32-12  in Schools program is <was> established on September 1, 1993
  32-13  <1991>, shall designate <not more than 32 elementary schools and 76
  32-14  secondary schools in those counties> to participate in the program:
  32-15              (1)  the campuses designated on September 1, 1991, for
  32-16  original participation in the program for continuation in the
  32-17  program; and
  32-18              (2)  not more than 135 additional elementary and
  32-19  secondary schools in those counties or cities.
  32-20        (b)  The state coordinator, in cooperation with the program
  32-21  directors in six <four> additional counties or cities designated by
  32-22  the state coordinator, shall designate additional elementary and
  32-23  secondary schools to participate in the Communities in Schools
  32-24  program.
  32-25        (c)  The designation of secondary schools to participate in
  32-26  the Communities in Schools program must be distributed among high
  32-27  schools and junior high or middle schools.
   33-1        Sec. 305.022 <216.022>.  PARTICIPATION IN PROGRAM.  An
   33-2  elementary or secondary school designated under Section 305.021
   33-3  <216.021> shall participate in the Communities in Schools program
   33-4  if the number of students enrolled in the school who are at risk of
   33-5  dropping out of school is equal to at least 10 percent of the
   33-6  number of students in average daily attendance at the school, as
   33-7  determined by the agency.
   33-8              (Sections 305.023-305.030 <216.023-216.030>
   33-9                        reserved for expansion)
  33-10                    SUBCHAPTER D.  PROGRAM FUNDING
  33-11        Sec. 305.031 <216.031>.  DONATIONS TO PROGRAM.  (a)  The
  33-12  commission may accept a donation of services or money or other
  33-13  property that the commission determines furthers the lawful
  33-14  objectives of the commission in connection with the Communities in
  33-15  Schools program.
  33-16        (b)  Donations must be accepted in an open meeting by a
  33-17  majority of the voting members of the commission.  The donation,
  33-18  with the name of the donor and the purpose of the donation, must be
  33-19  reported in the public records of the commission.
  33-20        SECTION 1.06.  Chapter 217, Labor Code, is moved from
  33-21  Subtitle A, Title 4, Labor Code, to Subtitle B of that title,
  33-22  redesignated as Chapter 306, Labor Code, and amended to read as
  33-23  follows:
  33-24     CHAPTER 306 <217>.  PROJECT RIO (REINTEGRATION OF OFFENDERS)
  33-25        Sec. 306.001 <217.001>.  DEFINITIONS.  In this chapter:
  33-26              (1)  "Department" means the Texas Department of
  33-27  Criminal Justice.
   34-1              (2)  "Institutional division" means the institutional
   34-2  division of the department.
   34-3              (3)  "Project RIO" means the project for reintegration
   34-4  of offenders.
   34-5        Sec. 306.002 <217.002>.  PROJECT RIO.  The project for
   34-6  reintegration of offenders is a statewide employment referral
   34-7  program designed to reintegrate into the labor force persons
   34-8  formerly confined in the institutional division.
   34-9        Sec. 306.003 <217.003>.  ADMINISTRATION.  The department and
  34-10  the commission shall cooperate to maximize the effectiveness of
  34-11  Project RIO. For that purpose, the commission shall administer the
  34-12  project.
  34-13        Sec. 306.004 <217.004>.  MEMORANDUM OF UNDERSTANDING--
  34-14  ADOPTION.  (a)  The department and the commission shall adopt a
  34-15  memorandum of understanding that establishes the respective
  34-16  responsibilities of each agency and of the divisions within the
  34-17  department.
  34-18        (b)  The commission shall coordinate the development of the
  34-19  memorandum of understanding.  The department shall adopt rules as
  34-20  necessary to implement the memorandum and may amend the memorandum
  34-21  and those rules as necessary.
  34-22        Sec. 306.005 <217.005>.  MEMORANDUM OF UNDERSTANDING--
  34-23  CONTENTS.  <(a)>  The memorandum of understanding must establish
  34-24  the role of:
  34-25              (1)  the institutional division in ascertaining and
  34-26  encouraging an inmate's chances for employment by:
  34-27                    (A)  providing vocational and educational
   35-1  assessment for the person while incarcerated in the division;
   35-2                    (B)  developing a skills enhancement program for
   35-3  the person while incarcerated, in cooperation with other
   35-4  governmental, educational, and private entities, using available
   35-5  public or private financial resources authorized by statute; and
   35-6                    (C)  referring the person on release to the
   35-7  project through the person's parole officer;
   35-8              (2)  the community justice assistance division and the
   35-9  pardons and paroles division of the department in:
  35-10                    (A)  encouraging and referring persons to the
  35-11  project; and
  35-12                    (B)  ensuring that those persons participate in
  35-13  the project and avail themselves of its services; and
  35-14              (3)  the commission in developing and maintaining a
  35-15  statewide network for finding positions of employment that require
  35-16  the skills possessed by project participants and in helping those
  35-17  participants to secure employment.
  35-18        <(b)  The memorandum also must establish the methods by which
  35-19  the commission shall coordinate its efforts under this chapter with
  35-20  the operations of service providers operating under Chapter 301
  35-21  (Texas Job-Training Partnership Act).>
  35-22        Sec. 306.006 <217.006>.  PROJECT DIRECTOR.  (a)  The
  35-23  executive director <administrator> of the commission shall
  35-24  designate the director of Project RIO to coordinate the efforts of
  35-25  the affected state agencies and expedite the delivery of services
  35-26  to participants in the project, including prospective employers.
  35-27        (b)  The project director shall:
   36-1              (1)  propose, for adoption by the commission, standards
   36-2  and guidelines for the operation of the project;
   36-3              (2)  obtain information from appropriate state agencies
   36-4  and offices affiliated with the project to determine any necessary
   36-5  changes in the project;
   36-6              (3)  disseminate information statewide about the
   36-7  project; and
   36-8              (4)  train commission staff to assist in the operation
   36-9  of affiliated services.
  36-10        SECTION 1.07.  Section 201.002, Labor Code, is repealed.
  36-11           ARTICLE 2.  CONFORMING AMENDMENTS--WORKFORCE AND
  36-12                     ECONOMIC COMPETITIVENESS ACT
  36-13        SECTION 2.01. Section 1.04, Workforce and Economic
  36-14  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  36-15  Statutes), is amended to read as follows:
  36-16        Sec. 1.04.  DEFINITIONS.  In this Act:
  36-17              (1)  "Council" means the Council on Workforce and
  36-18  Economic  Competitiveness.
  36-19              (2)  "Division" means the division of workforce
  36-20  development of the Texas Employment Commission.
  36-21              (3)  "Human resource investment council" means a human
  36-22  resource investment council under the Job Training Reform
  36-23  Amendments Act of 1992 (Pub. L.  No.  102-367, Section 701 et
  36-24  seq.).
  36-25              (4)  "Local labor market" means an economically
  36-26  integrated geographical area within which individuals may reside
  36-27  and find employment within a reasonable distance.
   37-1              (5) <(3)>  "Program year" means July 1 to June 30.
   37-2              (6) <(4)>  "Workforce development" includes workforce
   37-3  education programs and workforce training and services.
   37-4              (7) <(5)>  "Workforce education" means articulated
   37-5  career-path programs and the constituent courses of those programs
   37-6  that lead to initial  or continuing licensure or certification or
   37-7  associate degree-level accreditation and that are subject to:
   37-8                    (A)  initial and ongoing state approval or
   37-9  regional or specialized accreditation;
  37-10                    (B)  a formal state evaluation that provides the
  37-11  basis for program continuation or termination;
  37-12                    (C)  state accountability and performance
  37-13  standards; and
  37-14                    (D)  regional or statewide employer-driven labor
  37-15  market demand documentation.
  37-16              (8) <(6)>  "Workforce training and services" means
  37-17  training and services programs that are not included within the
  37-18  definition of workforce education.
  37-19        SECTION 2.02.  Section 2.01, Workforce and Economic
  37-20  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  37-21  Statutes), is amended to read as follows:
  37-22        Sec. 2.01.  CREATION OF COUNCIL.  (a)  The Council on
  37-23  Workforce and Economic Competitiveness is created <as a state
  37-24  agency> to act as a human resources investment council.
  37-25        (b)  The council is attached for administrative purposes to
  37-26  the General Services Commission.
  37-27        SECTION 2.03.  Section 2.02(b), Workforce and Economic
   38-1  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
   38-2  Statutes), is amended to read as follows:
   38-3        (b)  The council shall be composed of:
   38-4              (1)  three <the following ex officio voting members:>
   38-5                    <(A)  the commissioner of education;>
   38-6                    <(B)  the commissioner of higher education;>
   38-7                    <(C)  the commissioner of health and human
   38-8  services;>
   38-9                    <(D)  the executive director of the Texas
  38-10  Department of Commerce; and>
  38-11                    <(E)  the administrator of the Texas Employment
  38-12  Commission;>
  38-13              <(2)  six> voting members appointed by the governor who
  38-14  represent education, <at least> one of whom represents local public
  38-15  education, one of whom represents public postsecondary education,
  38-16  <one of whom represents secondary vocational education,> and one of
  38-17  whom represents <postsecondary> vocational education;
  38-18              (2)  five <(3)  seven> voting members who represent
  38-19  organized labor appointed by the governor based on recommendations
  38-20  made by recognized labor organizations;
  38-21              (3)  five <(4)  seven> voting members appointed by the
  38-22  governor who represent business and industry, including business
  38-23  members serving on local workforce development boards or private
  38-24  industry councils;
  38-25              (4) <(5)>  one voting member appointed by the governor
  38-26  who represents a community-based organization; and
  38-27              (5) <(6)  one voting member appointed by the governor
   39-1  who represents a joint-sponsored apprenticeship program as defined
   39-2  by the United States Department of Labor's Bureau of Apprenticeship
   39-3  and Training appointed from a list of three nominees submitted to
   39-4  the governor by the Apprenticeship and Training Association of
   39-5  Texas;>
   39-6              <(7)  one voting member appointed by the governor who
   39-7  represents a community-based adult literacy organization;>
   39-8              <(8)  one voting member appointed by the governor who
   39-9  represents adult basic and continuing education programs;>
  39-10              <(9)  six voting members appointed by the governor each
  39-11  of whom represents not more than one of the following categories:>
  39-12                    <(A)  literacy groups;>
  39-13                    <(B)  local welfare or public housing agencies;>
  39-14                    <(C)  units of local government;>
  39-15                    <(D)  adult education organizations;>
  39-16                    <(E)  teachers or counselors;>
  39-17                    <(F)  local service delivery organizations;>
  39-18                    <(G)  special needs populations;>
  39-19                    <(H)  rural and agricultural organizations;>
  39-20                    <(I)  proprietary schools;>
  39-21                    <(J)  members of the state legislature; and>
  39-22                    <(K)  other groups and organizations; and>
  39-23              <(10)>  the following ex officio voting <nonvoting>
  39-24  members:
  39-25                    (A)  the chair of the State Board of Education;
  39-26                    (B)  the chair of the Texas Higher Education
  39-27  Coordinating Board;
   40-1                    (C)  the presiding officer of the Texas Board of
   40-2  Human Services;
   40-3                    (D)  <the presiding officer of the governing
   40-4  board of the Texas Department of Commerce;>
   40-5                    <(E)>  the member <chair> of the Texas Employment
   40-6  Commission who represents labor; and
   40-7                    (E)  the member of the Texas Employment
   40-8  Commission who represents employers
   40-9                    <(F)  the commissioner of the Texas
  40-10  Rehabilitation Commission; and>
  40-11                    <(G)  the executive director of the Texas
  40-12  Commission for the Blind>.
  40-13        SECTION 2.04.  Section 2.03(b), Workforce and Economic
  40-14  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  40-15  Statutes), is amended to read as follows:
  40-16        (b)  A member of the council who does not serve as an ex
  40-17  officio member serves a four-year <six year> term, with one-half
  40-18  <one-third> of those members' terms expiring in each odd-numbered
  40-19  year.  An ex officio member shall continue to serve as a member of
  40-20  the council as long as the member continues to serve in the
  40-21  designated office.
  40-22        SECTION 2.05.  Section 2.06(a), Workforce and Economic
  40-23  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  40-24  Statutes), is amended to read as follows:
  40-25        (a)  The council shall:
  40-26              (1)  promote the development of a well-educated, highly
  40-27  skilled workforce in this state <through literacy, adult basic
   41-1  education, community education, apprenticeship, and
   41-2  state-of-the-art occupational skills education and training
   41-3  programs>;
   41-4              (2)  <serve as an> advocate <for> the development of an
   41-5  integrated workforce development system to provide quality services
   41-6  addressing the needs of business and workers in this state;
   41-7              (3)  <promote and assist in the development of an
   41-8  industry-based skills standards and certification system for
   41-9  occupations requiring less than a baccalaureate-level education and
  41-10  training;>
  41-11              <(4)  promote the development of high productivity
  41-12  workplaces in this state;>
  41-13              <(5)  recommend to the governor the components of a
  41-14  school and training-to-work transition process;>
  41-15              <(6)>  develop and recommend to the governor a single
  41-16  strategic plan that establishes the framework for the budgeting and
  41-17  operation of all workforce development programs, including school
  41-18  to work transition programs, administered by agencies represented
  41-19  on the council;
  41-20              (4) <(7)>  recommend to the governor the designation or
  41-21  redesignation of workforce development areas for the local planning
  41-22  and delivery of workforce development programs;
  41-23              (5) <(8)>  identify and recommend to the governor
  41-24  incentives to encourage the consolidation, on a regional labor
  41-25  market basis, of:
  41-26                    (A)  local boards, councils, and committees; and
  41-27                    (B)  service delivery areas authorized under the
   42-1  Job Training Partnership Act (29 U.S.C. Sec. 1501 et seq.);
   42-2              (6) <(9)  design and implement a state-local planning
   42-3  process for the state's workforce training and services programs;>
   42-4              <(10)>  review local workforce training and services
   42-5  plans and make recommendations to the governor for approval;
   42-6              (7)  evaluate <(11)  implement a statewide system for
   42-7  evaluating> the effectiveness of all workforce development programs
   42-8  using the administrative records of the state's unemployment
   42-9  compensation program and other sources as appropriate;
  42-10              (8) <(12)>  support research and demonstration projects
  42-11  designed to develop new programs and approaches to service
  42-12  delivery;
  42-13              (9)  design, oversee, <(13)  provide for training and
  42-14  professional development for council members, local chief elected
  42-15  officials, workforce development boards and staff, and private
  42-16  industry councils and staff;>
  42-17              <(14)  serve as an advocate at the state and federal
  42-18  levels for the local workforce development boards;>
  42-19              <(15)  establish> and manage <operate> a statewide
  42-20  comprehensive labor market information system that serves
  42-21  employers, students, workers, and state and local planning
  42-22  organizations;
  42-23              (10) <(16)>  ensure that occupational skills training
  42-24  is provided in occupations that are currently in demand at the
  42-25  local level and is directed toward high-skill and high-wage jobs;
  42-26              (11) <(17)  develop and recommend to the governor and
  42-27  legislature not later than November 15, 1994, a plan for
   43-1  consolidating all workforce development programs in this state;>
   43-2              <(18)>  oversee the operation of the state's workforce
   43-3  development programs to assess the degree to which the programs are
   43-4  effective in achieving state and local goals and objectives;
   43-5              (12) <(19)>  develop and recommend to the governor
   43-6  criteria for the establishment of local workforce development
   43-7  boards; and
   43-8              (13)  <(20)  develop objective criteria for granting
   43-9  waivers allowed under this Act;>
  43-10              <(21)  develop and recommend to the governor a plan to
  43-11  ensure client accessibility to workforce programs that includes a
  43-12  uniform statewide client application system for determining an
  43-13  applicant's eligibility for a workforce program for which state or
  43-14  federal financial assistance is available; and>
  43-15              <(22)>  carry out the federal and state mandated duties
  43-16  and responsibilities for all advisory councils under applicable
  43-17  federal and state workforce development programs.
  43-18        SECTION 2.06.  Section 2.09(d), Workforce and Economic
  43-19  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  43-20  Statutes), is amended to read as follows:
  43-21        (d)  At least annually, the council shall issue an
  43-22  occupation-specific analysis by provider of the job placement
  43-23  performance of each workforce education program for the previous
  43-24  one-year, three-year, and five-year periods to:
  43-25              (1)  each provider of a workforce education program or
  43-26  workforce training and services program;
  43-27              (2)  the Texas Higher Education Coordinating Board for
   44-1  each provider of a workforce education program approved and
   44-2  administered by the board; <and>
   44-3              (3)  each local workforce development board for each
   44-4  provider of workforce training and services within the workforce
   44-5  development area; and
   44-6              (4)  the Texas Employment Commission.
   44-7        SECTION 2.07.  Section 2.11, Workforce and Economic
   44-8  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
   44-9  Statutes), is amended to read as follows:
  44-10        Sec. 2.11. DISSOLUTION OF STATE ADVISORY COUNCILS AND
  44-11  TRANSFER OF <STATE ADVISORY COUNCIL> RESPONSIBILITIES.  (a)  The
  44-12  council shall assume the responsibilities assigned to the state
  44-13  advisory council under the following federal laws:
  44-14              (1)  the Job Training Partnership Act (29 U.S.C.
  44-15  Section 1501 et seq.);
  44-16              (2)  the Carl D. Perkins Vocational and Applied
  44-17  Technology Education Act (20 U.S.C. Section 2301 et seq.);
  44-18              (3)  the National and Community Service Act of 1990 (42
  44-19  U.S.C. Section 12501 et seq.);
  44-20              (4)  the Adult Education Act (20 U.S.C. Section 1201 et
  44-21  seq.);
  44-22              (5)  the Wagner-Peyser Act (29 U.S.C. Section 49 et
  44-23  seq.);
  44-24              (6)  Part F, Subchapter IV, Social Security Act (42
  44-25  U.S.C. Section 681 et seq.);
  44-26              (7)  the employment program established under Section
  44-27  6(d)(4), Food Stamp Act of 1977 (7 U.S.C. Section 2015(d)(4)); and
   45-1              (8)  the National Literacy Act of 1991 (Pub. L. 102-73
   45-2  et seq.).
   45-3        (b)  The following state advisory councils, boards, and
   45-4  committees are dissolved and the council shall assume the
   45-5  responsibilities formerly exercised by the following state advisory
   45-6  councils, boards, and committees:
   45-7              (1)  the State Job Training Coordinating Council;
   45-8              (2)  the Texas Council on Vocational Education;
   45-9              (3)  the technical advisory committee to the State
  45-10  Occupational Information Coordinating Council;
  45-11              (4)  the Texas Literacy Council; and
  45-12              (5)  the Apprenticeship and Training Advisory
  45-13  Committee.
  45-14        SECTION 2.08.  Section 2.12, Workforce and Economic
  45-15  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  45-16  Statutes), is amended to read as follows:
  45-17        Sec. 2.12.  FISCAL AGENT.  The General Services Commission
  45-18  shall <council may designate another state agency to> serve as the
  45-19  council's fiscal agent <if the designated agent agrees to the
  45-20  designation>.
  45-21        SECTION 2.09.  Sections 2.13(c) and (e), Workforce and
  45-22  Economic Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  45-23  Statutes), are amended to read as follows:
  45-24        (c)  The executive director shall <may> adopt the
  45-25  administrative and personnel procedures of the council's fiscal
  45-26  agent rather than adopting new procedures for the council.
  45-27        (e)  The executive director of the State Occupational
   46-1  Information Coordinating Council shall be an employee of the
   46-2  council <report to the executive director of the council and shall
   46-3  provide labor market information, information relevant to workforce
   46-4  program evaluation, and technical assistance to the council and its
   46-5  staff as requested>.  The council <executive director of the State
   46-6  Occupational Information Coordinating Council> may enter into
   46-7  contracts for products and services with state agency members of
   46-8  the council <State Occupational Information Coordinating Council
   46-9  membership agencies> and other organizations if consistent with the
  46-10  state strategic plan.
  46-11        SECTION 2.10.  Section 2.17(d), Workforce and Economic
  46-12  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  46-13  Statutes), is amended to read as follows:
  46-14        (d)  State agencies that are responsible for the
  46-15  administration of human resources and workforce development
  46-16  programs in this state shall implement the recommendations if the
  46-17  recommendations do not violate an existing federal or state law<,
  46-18  regulation, or rule>.
  46-19        SECTION 2.11.  Section 2.18, Workforce and Economic
  46-20  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  46-21  Statutes), is amended to read as follows:
  46-22        Sec. 2.18.  FUNDING.  (a)  Federal funding for the operation
  46-23  of the council shall be allocated according to federal
  46-24  requirements.
  46-25        (b)  <The council shall develop a budget to carry out the
  46-26  council's duties and responsibilities under this Act.  The budget
  46-27  must be submitted to the governor and the Legislative Budget Board
   47-1  for approval.  The budget shall identify funds appropriated for the
   47-2  biennium ending August 31, 1995, for planning and evaluation of a
   47-3  workforce development program administered by an agency represented
   47-4  on the council and shall recommend the transfer of those funds to
   47-5  the functions being assumed by the council.>
   47-6        <(c)>  A state agency represented on the council shall
   47-7  provide funds for the support of the council in proportion to the
   47-8  agency's financial participation in the workforce development
   47-9  system.
  47-10        SECTION 2.12.  Section 4.01, Workforce and Economic
  47-11  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  47-12  Statutes), is amended to read as follows:
  47-13        Sec. 4.01.  CREATION OF LOCAL WORKFORCE DEVELOPMENT BOARDS.
  47-14  (a)  The chief elected officials in a workforce development area
  47-15  designated by the governor under Section 3.01 of this Act may form,
  47-16  in accordance with rules established by the Texas Employment
  47-17  Commission <council>, a local workforce development board to plan
  47-18  and oversee the delivery of all workforce training and services
  47-19  programs and evaluate all workforce development programs in the
  47-20  workforce development area. The authority granted under this
  47-21  subsection does not give a local workforce development board any
  47-22  direct authority or control over workforce funds and programs in
  47-23  its workforce development area, other than programs funded through
  47-24  that board.
  47-25        (b)  Before a local workforce development board may be
  47-26  created, at least three-fourths of the chief elected officials in
  47-27  the workforce development area who represent units of general local
   48-1  government must agree to the creation of the board, including all
   48-2  of the chief elected officials who represent units of general local
   48-3  government having populations of at least 200,000.  The elected
   48-4  officials agreeing to the creation of the board must represent at
   48-5  least 75 percent of the population of the workforce development
   48-6  area.
   48-7        (c)  On agreement regarding the formation of a local
   48-8  workforce development board, the chief elected officials shall
   48-9  reduce the agreement to writing.  The local government agreement
  48-10  shall include:
  48-11              (1)  the purpose for the agreement;
  48-12              (2)  the process that will be used to select the chief
  48-13  elected official who will act on behalf of the other chief elected
  48-14  officials;
  48-15              (3)  the process that will be followed to keep those
  48-16  chief elected officials informed regarding local workforce
  48-17  development activities;
  48-18              (4)  the initial size of the local workforce
  48-19  development board;
  48-20              (5)  how resources allocated to the local workforce
  48-21  development area will be shared among the parties to the agreement;
  48-22              (6) <(4)>  the process to be used to appoint the board
  48-23  members, which must be consistent with applicable federal and state
  48-24  laws; and
  48-25              (7) <(5)>  the terms of office of the members of the
  48-26  board.
  48-27        (d) <(c)>  The chief elected officials shall consider the
   49-1  views of all affected local organizations, including private
   49-2  industry councils and quality workforce planning committees, before
   49-3  making a final decision regarding the formation of a local
   49-4  workforce development board.
   49-5        (e) <(d)>  None of the powers and duties granted a workforce
   49-6  development board under this Act may be exercised in a workforce
   49-7  development area until the chief elected officials in that area
   49-8  reach an agreement providing for the establishment of a local
   49-9  workforce development board as provided by Subsection (b) of this
  49-10  section and the board is certified by the governor.
  49-11        (f) <(e)>  A private industry council in an area in which a
  49-12  local workforce development board is not created or in which the
  49-13  chief elective officers are unable to negotiate the establishment
  49-14  of a local workforce development board may not exercise any of the
  49-15  powers granted a local workforce development board by this Act,
  49-16  except for a power granted under the Job Training Partnership Act
  49-17  (29 U.S.C. Section 1501 et seq.).
  49-18        (g)  A member or former member of a local workforce
  49-19  development board may not be held personally liable for any claim,
  49-20  damage, loss, or repayment obligation of federal or state funds
  49-21  that arises from this Act unless the act or omission that causes
  49-22  the claim, damage, loss, or repayment obligation constitutes
  49-23  official misconduct on the part of the board member, wilful
  49-24  disregard of the requirements of this Act on the part of the board
  49-25  member, or gross negligence on the part of the board member.
  49-26        SECTION 2.13.  Section 4.04, Workforce and Economic
  49-27  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
   50-1  Statutes), is amended by amending Subsections (a), (c), and (d) and
   50-2  by adding Subsection (f) to read as follows:
   50-3        (a)  A board is directly responsible and accountable to the
   50-4  division <council> for the strategic planning and oversight of all
   50-5  workforce training and services and the evaluation of all workforce
   50-6  development programs in the workforce development area.  A
   50-7  workforce development board shall ensure effective outcomes
   50-8  consistent with statewide goals, objectives, and performance
   50-9  standards approved by the governor.  The division <council> shall
  50-10  assist workforce development boards in designing effective measures
  50-11  to accomplish this responsibility.  A board is directly responsible
  50-12  to the division for the operational planning and administration of
  50-13  all workforce training and services funded through the commission
  50-14  to the local area.
  50-15        (c)  A board shall:
  50-16              (1)  serve as a single point of contact for local
  50-17  business to communicate their skill needs and influence the
  50-18  direction of all workforce development programs in the workforce
  50-19  development area;
  50-20              (2)  serve as a private industry council under the
  50-21  federal Job Training Partnership Act (29 U.S.C. Section 1501 et
  50-22  seq.);
  50-23              (3)  develop a local plan for addressing the workforce
  50-24  development needs of the workforce development area that:
  50-25                    (A)  is responsive to the goals, objectives, and
  50-26  performance standards established by the governor;
  50-27                    (B)  targets services to meet local needs,
   51-1  including the identification of industries and employers likely to
   51-2  employ workers who complete job training programs; and
   51-3                    (C)  ensures that the workforce development
   51-4  system, including the educational system, has the flexibility to
   51-5  meet the needs of local businesses;
   51-6              (4) <(3)>  designate the board or some other entity as
   51-7  the board's fiscal agent to be responsible and accountable for the
   51-8  management of all workforce development funds available to the
   51-9  board;
  51-10              (5) <(4)>  create local career <workforce> development
  51-11  centers as established in Article 5 of this Act;
  51-12              (6) <(5)>  review plans for workforce education to
  51-13  ensure that the plans address the needs of local businesses and
  51-14  recommend changes in the delivery of education services as
  51-15  appropriate;
  51-16              (7) <(6)>  assume the functions and responsibilities of
  51-17  local career <workforce> development advisory boards, councils, and
  51-18  committees authorized by federal or state laws, including private
  51-19  industry councils, quality workforce planning committees, job
  51-20  service employer committees, and local general vocational program
  51-21  advisory committees;
  51-22              (8) <(7)>  monitor and evaluate the effectiveness of
  51-23  the career <workforce> development centers, state agencies and
  51-24  other contractors providing workforce training and services, and
  51-25  vocational and technical education programs operated by local
  51-26  education agencies and institutions of higher education to ensure
  51-27  that performance is consistent with state and local goals and
   52-1  objectives;
   52-2              (9) <(8)>  promote cooperation and coordination among
   52-3  public organizations, community organizations, and private business
   52-4  providing workforce development services; and
   52-5              (10) <(9)>  review applications as consistent with
   52-6  rules developed by the Texas Department of Commerce for funds under
   52-7  the smart jobs fund program under Subchapter J, Chapter 481,
   52-8  Government Code.
   52-9        (d)  The board may provide relevant labor market information
  52-10  and information regarding the availability of existing workforce
  52-11  development programs to the department in performing the board's
  52-12  duties under Subsection (c)(10) <(9)> of this section.
  52-13        (f)  The chief elected officials designated under Section
  52-14  4.01(b) of this Act shall enter into a partnership agreement with
  52-15  the local workforce development board to select the grant recipient
  52-16  and the administrative entity for the local workforce development
  52-17  area and to determine procedures for the development of the local
  52-18  workforce development plan.
  52-19        SECTION 2.14.  Section 4.05, Workforce and Economic
  52-20  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  52-21  Statutes), is amended to read as follows:
  52-22        Sec. 4.05.  LOCAL PLAN.  (a)  A local workforce development
  52-23  board shall develop a single plan that includes the components
  52-24  specified in this section.
  52-25        (b)  The plan must include a strategic component that:
  52-26              (1)  assesses the labor market needs of the local
  52-27  workforce development area;
   53-1              (2)  identifies existing workforce development
   53-2  programs;
   53-3              (3)  evaluates the effectiveness of existing programs
   53-4  and services; and
   53-5              (4)  sets broad goals and objectives for all workforce
   53-6  development programs in the local area consistent with statewide
   53-7  goals, objectives, and performance standards.
   53-8        (c)  The plan must include an operational component that
   53-9  specifies how all of the resources directly available to the local
  53-10  workforce development area from the division will be used to
  53-11  achieve the goals and objectives of the plan for the area.  At a
  53-12  minimum, this component must establish:
  53-13              (1)  the goals, objectives, and performance measures to
  53-14  be used in overseeing and evaluating the operation of all workforce
  53-15  training and services;
  53-16              (2)  the segments of the population targeted for
  53-17  various services;
  53-18              (3)  the mix of services to be provided and how they
  53-19  are to be provided; and
  53-20              (4)  the structure of the local service delivery
  53-21  system.
  53-22        (d)  Program resources included in the operational component
  53-23  are those under <for the delivery of all workforce training and
  53-24  services in the board's service area under the following programs>:
  53-25              (1)  <the Texas Job-Training Partnership Act (Article
  53-26  4413(52), Vernon's Texas Civil Statutes);>
  53-27              <(2)>  postsecondary vocational and technical job
   54-1  training programs that are not part of approved courses or programs
   54-2  that lead to licensing, certification, or an associate degree under
   54-3  Chapters 61, 108, 130, and 135, and Subchapter E, Chapter 88,
   54-4  Education Code;
   54-5              (2) <(3)>  adult education programs under Section
   54-6  11.18, Education Code;
   54-7              (3) <(4)>  apprenticeship programs under Chapter 33,
   54-8  Education Code;
   54-9              (4) <(5)>  the trade adjustment assistance program
  54-10  under Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section
  54-11  2271 et seq.);
  54-12              (5) <(6)>  the senior citizens employment program under
  54-13  Chapter 101, Human Resources Code;
  54-14              (6)  Subtitle A, Title 4, Labor Code <(7)  the Texas
  54-15  Unemployment Compensation Act (Article 5221b-1 et seq., Vernon's
  54-16  Texas Civil Statutes)>;
  54-17              (7) <(8)>  literacy funds available to the state under
  54-18  the National Literacy Act of 1991 (Pub. L. 102-73 et seq.);
  54-19              (8) <(9)>  the National and Community Service Act of
  54-20  1990 (42 U.S.C. Section 12501 et seq.);
  54-21              (9) <(10)>  the job opportunities and basic skills
  54-22  program under Part F, Subchapter IV, Social Security Act (42 U.S.C.
  54-23  Section 682); and
  54-24              (10) <(11)>  the food stamp employment and training
  54-25  program authorized under 7 U.S.C. Section 2015(d).
  54-26        (e) <(b)>  A local plan shall identify:
  54-27              (1)  goals, objectives, and performance measures;
   55-1              (2)  the population to be served;
   55-2              (3)  the mix of services to be provided;
   55-3              (4)  the service providers; and
   55-4              (5)  the structure of the delivery system.
   55-5        SECTION 2.15.  Sections 4.06(a) and (f), Workforce and
   55-6  Economic Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
   55-7  Statutes), are amended to read as follows:
   55-8        (a)  A board shall review, verify, modify, and use local
   55-9  labor market information developed through the state's <in
  55-10  conjunction with the council shall establish and operate an
  55-11  automated, interactive employer-driven> labor market information
  55-12  system to identify occupation-specific labor demand in each
  55-13  workforce development area.
  55-14        (f)  A public community college shall promptly provide
  55-15  workforce training and services that are requested:
  55-16              (1)  by the workforce development board based on the
  55-17  <board's> labor market <demand> information system available for
  55-18  the area;
  55-19              (2)  by employers located in the college's taxing
  55-20  district when the request is presented directly to the college by
  55-21  the employers or through the workforce development board; or
  55-22              (3)  as part of an economic development incentive
  55-23  package designed to attract or retain an employer, including a
  55-24  package offered under the smart jobs fund program under Subchapter
  55-25  J, Chapter 481, Government Code.
  55-26        SECTION 2.16.  Section 4.08(a), Workforce and Economic
  55-27  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
   56-1  Statutes), is amended to read as follows:
   56-2        (a)  A board shall establish a budget for the board that must
   56-3  be included in the local workforce development plan submitted to
   56-4  the division <Council on Workforce and Economic Competitiveness>.
   56-5  A board may employ professional, technical, and support staff as
   56-6  necessary to carry out its strategic planning, oversight, and
   56-7  evaluation functions.  A board's staff shall be separate from and
   56-8  independent of any organization providing workforce education or
   56-9  workforce training and services in the workforce development area.
  56-10        SECTION 2.17.  Article 5, Workforce and Economic
  56-11  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  56-12  Statutes), is amended to read as follows:
  56-13                   ARTICLE 5.  LOCAL DELIVERY SYSTEM
  56-14        Sec. 5.01.  The local workforce development system is
  56-15  composed of two major components as follows:
  56-16              (1)  an employer services component that provides labor
  56-17  market information and services and employment and other services
  56-18  as appropriate to local employers; and
  56-19              (2)  an integrated service delivery system composed of
  56-20  a network of career development centers serving the people of this
  56-21  state based on a one-stop for service approach and supported by
  56-22  electronic access to comprehensive labor market information.
  56-23        Sec. 5.02.  CAREER <WORKFORCE> DEVELOPMENT CENTERS.  (a) A
  56-24  local workforce development board shall establish career
  56-25  <workforce> development centers accessible to students and <,>
  56-26  workers<, and employers> throughout the workforce development area.
  56-27  Each center shall provide access to information and services
   57-1  available in the workforce development area and shall address the
   57-2  individual needs of students and <,> workers<, and employers>.  The
   57-3  services <available at a center> shall be tailored to meet
   57-4  individual needs and shall include the following:
   57-5              (1)  labor market information, including <the skills of
   57-6  the area workforce,> available job openings<,> and the education
   57-7  and <,> training<, and employment> opportunities in the local area,
   57-8  in the state, and as feasible, in the nation;
   57-9              (2)  a common intake and eligibility determination
  57-10  process for all workforce training <development programs> and
  57-11  services;
  57-12              (3)  independent assessment of individual needs and the
  57-13  development of an individual service strategy;
  57-14              (4)  centralized and continuous case management and
  57-15  counseling;
  57-16              (5)  individual referral for services including basic
  57-17  education, classroom skills training, on-the-job training, and
  57-18  customized training; and
  57-19              (6)  supportive services, including child care, student
  57-20  loans, and other forms of financial assistance required to
  57-21  participate in and complete training.
  57-22        (b)  Except as provided by Subsection (c) of this section, a
  57-23  person that provides one-stop services may not also provide
  57-24  developmental services, such as basic education and skills
  57-25  training.
  57-26        (c)  The division may develop a waiver process for a person
  57-27  subject to Subsection (b) of this section.  The request for a
   58-1  waiver must include a detailed justification based on the lack of
   58-2  an existing qualified alternative for delivery of developmental
   58-3  services in the applicable workforce development area.
   58-4        (d)  The Texas Employment Commission, in cooperation with
   58-5  local workforce development boards, shall provide for the filing of
   58-6  unemployment insurance claims through career development centers in
   58-7  each local workforce development area.
   58-8        Sec. 5.03. <Sec. 5.02.>  RIGHT TO KNOW.  A local career
   58-9  <workforce> development center shall provide each person, before
  58-10  the person participates in a vocational or technical training
  58-11  program, a written document that informs the person of current
  58-12  employment prospects, <and> the current wage level for a person who
  58-13  completes the vocational or technical training program in which the
  58-14  person is considering participating, and the most recent
  58-15  information available on the performance of institutions providing
  58-16  that training in the local workforce development area.
  58-17        SECTION 2.18.  The Workforce and Economic Competitiveness Act
  58-18  (Article 5190.7a, Vernon's Texas Civil Statutes) is amended by
  58-19  adding Article 7 to read as follows:
  58-20                   ARTICLE 7.  SKILL STANDARDS BOARD
  58-21        Sec. 7.01.  TEXAS SKILL STANDARDS BOARD.  (a)  The Texas
  58-22  Skill Standards Board is created as an advisory board to the
  58-23  council and the governor on the development of a statewide system
  58-24  of industry-defined and industry-recognized skill standards and
  58-25  credentials for all major skilled occupations that:
  58-26              (1)  provide strong employment and earnings
  58-27  opportunities in this state; and
   59-1              (2)  require less than a baccalaureate degree.
   59-2        (b)  The board is composed of 11 members appointed by and
   59-3  serving at the pleasure of the governor.  The board consists of the
   59-4  following members:
   59-5              (1)  seven members representing business, two of whom
   59-6  must be from business entities that employ fewer than 50 employees;
   59-7              (2)  two members representing labor;
   59-8              (3)  one member representing secondary education; and
   59-9              (4)  one member representing postsecondary education.
  59-10        (c)  The governor shall appoint the presiding officer of the
  59-11  board from the members representing business.
  59-12        (d)  The board shall:
  59-13              (1)  validate nationally established skill standards to
  59-14  guide curriculum development, training, assessment, and
  59-15  certification of workforce skills;
  59-16              (2)  convene industry groups to develop skill standards
  59-17  and certification procedures for industries and occupations in
  59-18  which standards have not been established or adopted;
  59-19              (3)  review standards developed by other states and
  59-20  nations and enter into agreements for mutual recognition of
  59-21  credentials to enhance portability of skills; and
  59-22              (4)  promote the use of standards and credentials among
  59-23  employers.
  59-24        (e)  The board shall meet at the call of the presiding
  59-25  officer as often as necessary to accomplish its work.
  59-26        (f)  A member of the board is not entitled to compensation
  59-27  for service on the board but is entitled to reimbursement for
   60-1  reasonable expenses incurred in performing board duties, subject to
   60-2  any applicable limitation in the General Appropriations Act.
   60-3        (g)  The division shall provide staff support for the board
   60-4  as necessary.
   60-5        (h)  The board shall report periodically to the governor and
   60-6  shall provide annual reports to the governor, the Texas Employment
   60-7  Commission, and the legislature.
   60-8        (i)  Article 6252-33, Revised Statutes, does not apply to the
   60-9  board.
  60-10        SECTION 2.19.  The following laws are repealed:
  60-11              (1)  Section 2.08, Workforce and Economic
  60-12  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  60-13  Statutes);
  60-14              (2)  Section 2.14, Workforce and Economic
  60-15  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  60-16  Statutes);
  60-17              (3)  Section 2.16, Workforce and Economic
  60-18  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  60-19  Statutes); and
  60-20              (4)  Section 2.17(f), Workforce and Economic
  60-21  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  60-22  Statutes).
  60-23        SECTION 2.20.  In making appointments to the Council on
  60-24  Workforce and Economic Competitiveness, as that council is
  60-25  reestablished under Section 2.02(b), Workforce and Economic
  60-26  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  60-27  Statutes), as amended by this Act, the governor shall reappoint to
   61-1  the council at least seven of the members who served on that
   61-2  council in a non-ex officio capacity on the day before the
   61-3  effective date of this Act.
   61-4                   ARTICLE 3.  CONFORMING AMENDMENTS
   61-5        SECTION 3.01.  Section 11.18(b), Education Code, as amended
   61-6  by Chapter 463, Acts of the 71st Legislature, Regular Session,
   61-7  1989, and Sections 11.18(c)-(e), Education Code, are amended to
   61-8  read as follows:
   61-9        (b)  The Texas Employment Commission <Central Education
  61-10  Agency> shall:
  61-11              (1)  manage this program with adequate staffing to
  61-12  develop, administer, and support a comprehensive statewide adult
  61-13  education program and coordinate related federal and state programs
  61-14  for education and training of adults;
  61-15              (2)  develop, implement, and regulate a comprehensive
  61-16  statewide program for community level education services to meet
  61-17  the special needs of adults;
  61-18              (3)  develop the mechanism and guidelines for
  61-19  coordination of comprehensive adult education and related skill
  61-20  training services for adults with other agencies, both public and
  61-21  private, in planning, developing, and implementing related
  61-22  programs, including community education programs;
  61-23              (4)  administer all state and federal funds for adult
  61-24  education and related skill training in Texas, except in programs
  61-25  where another entity is specifically authorized to do so under
  61-26  other law;
  61-27              (5)  prescribe and administer standards and accrediting
   62-1  policies for adult education;
   62-2              (6)  prescribe and administer rules and regulations for
   62-3  teacher certification for adult education; and
   62-4              (7)  accept and administer grants, gifts, services, and
   62-5  funds from available sources for use in adult education.
   62-6        (c)  Adult education programs shall be provided by public
   62-7  school districts, public junior colleges, and public universities
   62-8  approved in accordance with state statute and the regulations and
   62-9  standards adopted by the Texas Employment Commission in conjunction
  62-10  with the State Board of Education.  The programs shall be designed
  62-11  to meet the education and training needs of adults to the extent
  62-12  possible within available public and private resources.  Bilingual
  62-13  education may be the method of instruction for students who do not
  62-14  function satisfactorily in English whenever it is appropriate for
  62-15  their optimum development.
  62-16        (d)  The Texas Employment Commission <State Board of
  62-17  Education> may establish or designate an adult education advisory
  62-18  committee composed of no more than 21 members representing public
  62-19  and private nonprofit education, business, labor, minority groups,
  62-20  and the general public for the purpose of advising the commission
  62-21  <board> on needs, priorities, and standards of adult education
  62-22  programs conducted in accordance with this section of the Texas
  62-23  Education Code.
  62-24        (e)  Funds shall be appropriated to implement statewide adult
  62-25  basic education, adult bilingual education, high school
  62-26  equivalency, and high school credit programs to eliminate
  62-27  illiteracy in Texas and to implement and support a statewide
   63-1  program to meet the total range of adult needs for adult education,
   63-2  related skill training, and pilot programs to demonstrate the
   63-3  effectiveness of the community education concept.  An additional
   63-4  sum of money may be appropriated to the Texas Employment Commission
   63-5  <Department of Commerce> for the purpose of skill training in
   63-6  direct support of industrial expansion and start-up, and those
   63-7  locations, industries, and occupations designated by the Texas
   63-8  Employment Commission <Department of Commerce>, when such training
   63-9  is also in support of the basic purposes of this section.  To
  63-10  fulfill the basic purposes of this section, an additional sum of
  63-11  money may be appropriated for skill training that is conducted to
  63-12  support the expansion of civilian employment opportunities on
  63-13  United States military reservations.  The Central Education Agency,
  63-14  in conjunction with the Texas Employment Commission <Department of
  63-15  Commerce>, may adopt rules to administer such skill training
  63-16  programs for which the Central Education Agency is responsible, and
  63-17  the Texas Employment Commission <Department of Commerce> may adopt
  63-18  rules to administer such skill training programs for which the
  63-19  Texas Employment Commission <it> is responsible.
  63-20        SECTION 3.02.  Section 32.11(5), Education Code, is amended
  63-21  to read as follows:
  63-22              (5)  "Administrator" means the executive director of
  63-23  the Texas Employment Commission <State Commissioner of Education>
  63-24  or a person, knowledgeable in the administration of regulating
  63-25  proprietary schools, designated by that executive director <the
  63-26  Commissioner> to administer the provisions of this chapter.
  63-27        SECTION 3.03.  Section 32.12(c), Education Code, is amended
   64-1  to read as follows:
   64-2        (c)  If a State agency that issues a license or other
   64-3  authorization for the practice of an occupation elects not to
   64-4  regulate or approve course hours that exceed the minimum education
   64-5  requirements for the issuance of the license or other
   64-6  authorization, the licensing agency shall enter into a memorandum
   64-7  of understanding with the Texas Employment Commission <Central
   64-8  Education Agency> for the regulation of those excess course hours
   64-9  under this chapter.  Any course taught under a letter of approval
  64-10  or other written authorization issued by the licensing agency
  64-11  before the effective date of the memorandum is authorized under
  64-12  State law until the course is reviewed by the Texas Employment
  64-13  Commission <Central Education Agency>.  The licensing agency may
  64-14  terminate the memorandum of understanding on notice to the Texas
  64-15  Employment Commission <Central Education Agency>.
  64-16        SECTION 3.04.  Section 32.21, Education Code, is amended to
  64-17  read as follows:
  64-18        Sec. 32.21.  TEXAS EMPLOYMENT COMMISSION <CENTRAL EDUCATION
  64-19  AGENCY>.  (a)  The Texas Employment Commission <Central Education
  64-20  Agency> shall exercise jurisdiction and control of the system of
  64-21  schools, and it shall be the duty of the division of workforce
  64-22  development of that commission <Commissioner of Education> to carry
  64-23  out supervision of the provisions of this chapter, and to enforce
  64-24  minimum standards for approval of schools under the operating
  64-25  regulations and policies hereinafter set forth and as may from time
  64-26  to time be adopted pursuant to the provisions of this chapter.
  64-27        (b)  The Texas Employment Commission <Central Education
   65-1  Agency> shall prepare a comparison of the cost to a student of
   65-2  courses of instruction or training programs at proprietary schools
   65-3  to the cost to a student of similar courses or programs at schools
   65-4  that are exempt from this chapter under Section 32.12 of this code.
   65-5        (c)  The Texas Employment Commission <agency> may consult a
   65-6  recognized expert in a field of study for assistance in determining
   65-7  minimum program standards under this chapter for that field.
   65-8        (d)  The Texas Employment Commission <Central Education
   65-9  Agency> and the Texas Higher Education Coordinating Board shall
  65-10  adopt a memorandum of understanding which develops guidelines for
  65-11  coordinating the regulation of proprietary schools and courses that
  65-12  are subject to Sections 61.301 through 61.317 and Chapter 32 of
  65-13  this code.   The memorandum shall include provisions which:
  65-14              (1)  clearly identify the responsibilities of each
  65-15  agency in regulating proprietary schools;
  65-16              (2)  ensure that the rules adopted by both agencies
  65-17  pursuant to the memorandum of understanding are not duplicative or
  65-18  in conflict; and
  65-19              (3)  establish procedures for ensuring that information
  65-20  affecting the proprietary school regulatory activities of both
  65-21  agencies is shared between the agencies.
  65-22        SECTION 3.05.  Section 32.24, Education Code, is amended to
  65-23  read as follows:
  65-24        Sec. 32.24.  DUTIES OF TEXAS EMPLOYMENT COMMISSION.
  65-25  <ADMINISTRATOR.  (a)>  The division of workforce development of the
  65-26  Texas Employment Commission <administrator> shall carry out the
  65-27  policies of this chapter and enforce the rules and regulations
   66-1  adopted by the Texas Employment Commission <State Board of
   66-2  Education>.  The division of workforce development <He> shall also
   66-3  certify the names of those schools meeting the requirements for a
   66-4  certificate of approval.
   66-5        <(b)  The administrator may adopt and enforce temporary rules
   66-6  and regulations pursuant to the provisions of this chapter but the
   66-7  temporary rules and regulations are valid only until the next
   66-8  meeting of the State Board of Education.>
   66-9        SECTION 3.06.  Section 32.25, Education Code, is amended to
  66-10  read as follows:
  66-11        Sec. 32.25.  MEMORANDUM OF UNDERSTANDING FOR REGULATION OF
  66-12  PROPRIETARY SCHOOLS.  (a)  The Texas Employment Commission <Central
  66-13  Education Agency> shall develop, in consultation with the Texas
  66-14  Guaranteed Student Loan Corporation and each state agency that
  66-15  regulates proprietary schools in this state, a comprehensive
  66-16  strategy to reduce default rates at the regulated proprietary
  66-17  schools and to improve the overall quality of the programs operated
  66-18  by these schools.
  66-19        (b)  The Texas Employment Commission <Central Education
  66-20  Agency> shall execute a memorandum of understanding outlining the
  66-21  strategy with the corporation and each state agency regulating
  66-22  proprietary schools and shall adopt rules to carry out its duties
  66-23  under this section.  The Texas Guaranteed Student Loan Corporation
  66-24  shall adopt the memorandum of understanding as procedures of the
  66-25  corporation, and each agency by rule shall adopt the memorandum of
  66-26  understanding.
  66-27        (c)  The memorandum of understanding shall:
   67-1              (1)  require the development and monitoring of
   67-2  indicators that identify schools that have excessive loan default
   67-3  rates, poor program performance, or both;
   67-4              (2)  require the sharing of specific information
   67-5  relating to the indicators between the Texas Employment Commission
   67-6  <Central Education Agency> and the Texas Guaranteed Student Loan
   67-7  Corporation or other agency; and
   67-8              (3)  require the application of specific sanctions by
   67-9  the Texas Employment Commission <Central Education Agency> or by
  67-10  the Texas Guaranteed Student Loan Corporation or other agency, as
  67-11  appropriate, to lower the default rates, improve program
  67-12  performance, or both.
  67-13        (d)  If the Texas Employment Commission <Central Education
  67-14  Agency> enters a memorandum of understanding with the Texas
  67-15  Guaranteed Student Loan Corporation related to the regulation of
  67-16  proprietary schools, the commission <agency> may require each
  67-17  proprietary school governed by this chapter to provide information
  67-18  to the commission <agency> that is necessary for the purposes of
  67-19  the memorandum of understanding.
  67-20        SECTION 3.07.  Section 32.32, Education Code, is amended to
  67-21  read as follows:
  67-22        Sec. 32.32.  APPLICATION FOR CERTIFICATE OF APPROVAL.  Every
  67-23  proprietary school desiring to operate in the State of Texas or do
  67-24  business in the State shall make written application to the
  67-25  administrator for a certificate of approval.  Such application
  67-26  shall be verified, be in such form as may be prescribed by the
  67-27  Texas Employment Commission <State Board of Education>, and shall
   68-1  furnish the administrator such information as that commission <he>
   68-2  may require.
   68-3        SECTION 3.08.  Section 32.321(a), Education Code, is amended
   68-4  to read as follows:
   68-5        (a)  The Texas Employment Commission <State Board of
   68-6  Education> after consultation with the Proprietary School Advisory
   68-7  Commission may establish rules that waive, alter, suspend, or
   68-8  replace any of the following provisions governing small proprietary
   68-9  schools:
  68-10              (1)  the fee schedule authorized under Section 32.71 of
  68-11  this code, provided that fees under a fee schedule established by
  68-12  rule may not be less than the reasonable administrative cost for
  68-13  regulation or more than the amount that a small proprietary school
  68-14  would otherwise pay if it were not classified as a small
  68-15  proprietary school;
  68-16              (2)  participation in the proprietary school tuition
  68-17  protection fund required by Section 32.91 of this code;
  68-18              (3)  the refund policy provisions of Section 32.39 of
  68-19  this code;
  68-20              (4)  the bonding requirements of Section 32.38 of this
  68-21  code;
  68-22              (5)  the examination of a school for compliance under
  68-23  Section 32.34(f) of this code;
  68-24              (6)  the reporting requirements of Section 32.33(15)
  68-25  <32.33(o)> of this code; and
  68-26              (7)  the term for which a certificate of approval is
  68-27  issued under Section 32.34(b) of this code, provided that a rule
   69-1  adopted under this section may not provide for a term that exceeds
   69-2  three years or is less than one year.
   69-3        SECTION 3.09.  Section 32.33, Education Code, is amended to
   69-4  read as follows:
   69-5        Sec. 32.33.  CRITERIA.  The administrator may approve the
   69-6  application of a <such> proprietary school if <when> the school is
   69-7  found, on <upon> investigation at the premises of the school, to
   69-8  have met the following criteria:
   69-9              (1)  the <(a)  The> courses, curriculum, and
  69-10  instruction are of such quality, content, and length as may
  69-11  reasonably and adequately achieve the stated objective for which
  69-12  the courses, curriculum or instruction are offered; provided that
  69-13  before<.  Before> a school conducts a course of instruction in
  69-14  court reporting, the school must produce evidence that the school
  69-15  has obtained approval for the curriculum from the Court Reporters
  69-16  Certification Board;<.>
  69-17              (2)  the <(b)  There is in the> school has adequate
  69-18  space, equipment, instructional material and instructor personnel
  69-19  to provide training of good quality;<.>
  69-20              (3)  educational <(c)  Educational> and experience
  69-21  qualifications of directors, administrators and instructors are
  69-22  adequate;<.>
  69-23              (4)  the <(d)  The> school maintains a written record
  69-24  of the previous education and training of the applicant student and
  69-25  clearly indicates that appropriate credit has been given by the
  69-26  school for previous education and training, with the new training
  69-27  period shortened where warranted through use of appropriate skills
   70-1  or achievement tests and the student so notified;<.>
   70-2              (5)  a <(e)  A> copy of the following information is
   70-3  furnished to a student before enrollment:
   70-4                    (A)  a course outline;
   70-5                    (B)  a schedule of tuition, fees, <refund
   70-6  policy,> and other charges;
   70-7                    (C)  a statement of the school's refund policy;
   70-8                    (D)  a copy of regulations relating <pertaining>
   70-9  to absence, grading policy, <and> rules of operation and conduct,
  70-10  and<; regulations pertaining to> incomplete grades;
  70-11                    (E)  the name, mailing address, and telephone
  70-12  number of the Texas Employment Commission <Central Education
  70-13  Agency> for the purpose of directing complaints to the commission
  70-14  <agency>;
  70-15                    (F)  the current rates of job placement and
  70-16  employment of students issued a certificate of completion; and
  70-17                    (G)  notification of the availability of the cost
  70-18  comparison information prepared under Section 32.21(b) of this code
  70-19  through the Texas Employment Commission; <Central Education Agency
  70-20  will be furnished the student prior to enrollment.>
  70-21              (6)  except <(f)  Except> as provided by Section 32.40
  70-22  of this code, on completion of training, the student is given a
  70-23  certificate by the school indicating the course and that training
  70-24  was satisfactorily completed;<.>
  70-25              (7)  adequate <(g)  Adequate> records as prescribed by
  70-26  the administrator are kept to show attendance and progress or
  70-27  grades, and satisfactory standards relating to attendance, progress
   71-1  and conduct are enforced;<.>
   71-2              (8)  the <(h)  The> school complies with all local,
   71-3  city, county, municipal, state and federal regulations, such as
   71-4  fire, building and sanitation codes, and provides<.  The
   71-5  administrator may require such> evidence of compliance to the
   71-6  administrator as considered <is deemed> necessary by the
   71-7  administrator;<.>
   71-8              (9)  the <(i)  The> school is financially sound and
   71-9  capable of fulfilling its commitments for training;<.>
  71-10              (10)  the <(j)  The> school's administrators,
  71-11  directors, owners, and instructors are of good reputation and
  71-12  character;<.>
  71-13              (11)  the <(k)  The> school has, maintains, and
  71-14  publishes in its catalogue and enrollment contract<,> the proper
  71-15  policy for the refund of the unused portion of tuition, fees, and
  71-16  other charges in the event the student enrolled by the school fails
  71-17  to take the course or withdraws or is discontinued therefrom at any
  71-18  time prior to completion;<.>
  71-19              (12)  the <(l)  The> school does not utilize erroneous
  71-20  or misleading advertising, either by actual statement, omission, or
  71-21  intimation as determined by the Texas Employment Commission; <State
  71-22  Board of Education.>
  71-23              (13)  additional <(m)  Such additional> criteria as
  71-24  <may be> required by the Texas Employment Commission; <State Board
  71-25  of Education.>
  71-26              (14)  the <(n)  The> school does not use a name like or
  71-27  similar to an existing tax supported school in the same area;<.>
   72-1              (15)  the <(o)  The> school furnishes to the Texas
   72-2  Employment Commission <Central Education Agency> the current rates
   72-3  of students who receive a certificate of completion and of job
   72-4  placement and employment of students issued a certificate of
   72-5  completion;<.>
   72-6              (16)  the <(p)  The> school furnishes to the Texas
   72-7  Employment Commission <Central Education Agency> for approval or
   72-8  disapproval student admission requirements for each course or
   72-9  program offered by the school;<.>
  72-10              (17)  the <(q)  The> school furnishes to the Texas
  72-11  Employment Commission <Central Education Agency> for approval or
  72-12  disapproval the course hour lengths and curriculum content for each
  72-13  course offered by the school; and<.>
  72-14              (18)  the <(r)  The> school does not owe a civil
  72-15  penalty under Section 32.611 of this code.
  72-16        SECTION 3.10.  Sections 32.34(a) and (d), Education Code, are
  72-17  amended to read as follows:
  72-18        (a)  The administrator, upon review of an application for a
  72-19  certificate of approval duly submitted in accordance with the
  72-20  provisions of Section 32.32 and meeting the requirements of Section
  72-21  32.33 of this chapter, shall issue a certificate of approval to the
  72-22  applicant school.  The certificate of approval shall be in a form
  72-23  <recommended by the commission and> approved by the Texas
  72-24  Employment Commission <State Board of Education> and shall state in
  72-25  a clear and conspicuous manner at least the following information:
  72-26              (1)  date of issuance, effective date, and term of
  72-27  approval;
   73-1              (2)  correct name and address of the school;
   73-2              (3)  authority for approval and conditions of approval,
   73-3  if any, referring specifically to the approved catalogue or
   73-4  bulletin published by the school;
   73-5              (4)  signature of the administrator or such person as
   73-6  may have been designated by the Texas Employment Commission <him>
   73-7  to administer the provisions of this chapter; and
   73-8              (5)  any other fair and reasonable representations that
   73-9  are consistent with this chapter and deemed necessary by the
  73-10  administrator.
  73-11        (d)  At least thirty (30) days prior to expiration of a
  73-12  certificate of approval, the school shall forward to the
  73-13  administrator an application for renewal.  The administrator shall
  73-14  reexamine the school at the premises of the school and either renew
  73-15  or cancel the school's certificate of approval.  If a school fails
  73-16  to file a complete application for renewal at least thirty (30)
  73-17  days before the expiration date of the certificate of approval, the
  73-18  school, as a condition of renewal, must pay, in addition to the
  73-19  annual renewal fee, a late renewal fee in an amount established by
  73-20  rule by the Texas Employment Commission <State Board of Education
  73-21  rule> of at least $100.
  73-22        SECTION 3.11.  Section 32.38(e), Education Code, is amended
  73-23  to read as follows:
  73-24        (e)  The administrator, for good cause shown, <as recommended
  73-25  by the commission and approved by the State Board of Education,>
  73-26  may waive and suspend the requirements set forth in Subsections (a)
  73-27  and (c) of this Section with respect to schools operating wholly or
   74-1  in part under a federal grant where no tuition fee is charged to
   74-2  the student.
   74-3        SECTION 3.12.  Sections 32.39(c) and (e), Education Code, are
   74-4  amended to read as follows:
   74-5        (c)  In lieu of the refund policy herein set forth, for
   74-6  programs of instruction not regularly offered to the general
   74-7  public, the Texas Employment Commission <State Board of Education>
   74-8  may, for good cause shown, amend, modify, substitute and/or alter
   74-9  the terms of such policy due to the specialized nature and
  74-10  objective of the subject school's course of instruction.
  74-11        (e)  If a refund is not made within the period required by
  74-12  this section, the school shall pay a penalty. If the refund is made
  74-13  to a lending institution, the penalty shall also be paid to that
  74-14  institution and applied against the student's loan.  The Texas
  74-15  Employment Commission <commissioner of education> annually shall
  74-16  establish the level of the penalty at a level sufficient to provide
  74-17  a deterrent to the retention of student funds.  The Texas
  74-18  Employment Commission <Central Education Agency> may exempt a
  74-19  school from the payment of the penalty if the school makes a good
  74-20  faith effort to refund the tuition, fees, and other charges but is
  74-21  unable to locate the student.  The school shall provide to the
  74-22  Texas Employment Commission <the agency> on request documentation
  74-23  of the effort to locate the student.
  74-24        SECTION 3.13.  Section 32.401(b), Education Code, is amended
  74-25  to read as follows:
  74-26        (b)  A proprietary school may offer an applied technology
  74-27  degree, an occupational studies degree, or other degree approved by
   75-1  the Texas Employment Commission in conjunction with the Central
   75-2  Education Agency.  The commission may not <Central Education Agency
   75-3  shall have no authority to> approve a degree title that uses
   75-4  "associate," "bachelor's," "master's," or "doctor's" in the title
   75-5  and shall consult with the Texas Higher Education Coordinating
   75-6  Board to ensure that the titles of degrees approved by the
   75-7  commission <agency> are distinctly different from the titles of
   75-8  degrees approved by the board.
   75-9        SECTION 3.14.  Section 32.402(d), Education Code, is amended
  75-10  to read as follows:
  75-11        (d)  The authority of a school to operate under a small
  75-12  proprietary school certificate of approval terminates on the final
  75-13  determination of issuance or denial of an initial certificate of
  75-14  approval.  If a school fails to file a complete application within
  75-15  the period required by Subsection (b) of this section, the school,
  75-16  as a condition of issuance, must pay a late fee in an amount
  75-17  established by rule by the Texas Employment Commission <State Board
  75-18  of Education rule> of at least $100.
  75-19        SECTION 3.15.  Section 32.42(d), Education Code, is amended
  75-20  to read as follows:
  75-21        (d)  Upon the filing of the lawsuit, citation shall be served
  75-22  upon the administrator.  Whereupon, the administrator shall cause
  75-23  to be made a complete record of all proceedings had before the
  75-24  administrator, and shall certify a copy of the proceedings to the
  75-25  Court.  Trial before the Court shall be upon the basis of the
  75-26  record made before the administrator, and the Court shall make its
  75-27  decision based upon the record.  The administrator's decision shall
   76-1  be affirmed by the Court if the Court finds substantial evidence in
   76-2  the record to justify the decision, unless the Court finds the
   76-3  order to be:
   76-4              (1)  arbitrary and capricious, or
   76-5              (2)  in violation of the Constitution or laws of the
   76-6  State of Texas, or
   76-7              (3)  in violation of rules adopted by the Texas
   76-8  Employment Commission under this chapter <and regulations
   76-9  promulgated by the State Board of Education pursuant to the
  76-10  provisions of the Act>.
  76-11        SECTION 3.16.  Section 32.612, Education Code, is amended to
  76-12  read as follows:
  76-13        Sec. 32.612.  COMPETITIVE BIDDING; ADVERTISING.  The Texas
  76-14  Employment Commission <State Board of Education> may not adopt
  76-15  rules to restrict competitive bidding or advertising by a
  76-16  proprietary school except to prohibit false, misleading, or
  76-17  deceptive competitive bidding or advertising practices.  Those
  76-18  rules may not restrict:
  76-19              (1)  the use of an advertising medium;
  76-20              (2)  the size or duration of an advertisement; or
  76-21              (3)  advertisement under a trade name.
  76-22        SECTION 3.17.  Section 32.63(b), Education Code, is amended
  76-23  to read as follows:
  76-24        (b)  The attorney general, at the request of the Texas
  76-25  Employment Commission <Central Education Agency>, may bring a civil
  76-26  action to collect a civil penalty under this section.
  76-27        SECTION 3.18.  Section 32.64, Education Code, is amended to
   77-1  read as follows:
   77-2        Sec. 32.64.  SANCTIONS.  (a)  If the Texas Employment
   77-3  Commission <Central Education Agency> has reasonable cause to
   77-4  believe that a proprietary school has violated this chapter or a
   77-5  rule adopted under this chapter, the commission <agency> may:
   77-6              (1)  order a peer review of the school; or
   77-7              (2)  suspend the admission of students to the school.
   77-8        (b)  A peer review ordered under this section shall be
   77-9  conducted by a peer review team composed of knowledgeable persons
  77-10  selected by the Texas Employment Commission <agency>.  The
  77-11  commission <agency> shall attempt to provide a balance on each team
  77-12  between members assigned to the team who are from this state and
  77-13  those who are from other states.  The team shall provide the
  77-14  commission <agency> with an objective assessment of the content of
  77-15  the school's curriculum and its application.  The costs of
  77-16  providing a peer review team shall be paid by the school.
  77-17        SECTION 3.19.  Sections 32.71(a)-(e), Education Code, are
  77-18  amended to read as follows:
  77-19        (a)  Certificate and registration fees, except those charged
  77-20  pursuant to Subsection (d) of this section, shall be collected by
  77-21  the Administrator and deposited with the State Treasurer.  Each fee
  77-22  shall be in an amount set by the Administrator and approved by the
  77-23  Texas Employment Commission <State Board of Education> in an amount
  77-24  not to exceed 150 percent of each fee in the following schedule:
  77-25              (1)  the initial fee for a school:
  77-26                    (A)  for a certificate of approval is $2,000; or
  77-27                    (B)  for a small proprietary school certificate
   78-1  of approval is $1,000;
   78-2              (2)  the first renewal fee and each subsequent renewal
   78-3  fee for a school is the greater of:
   78-4                    (A)  an amount that is determined by applying a
   78-5  percentage, not to exceed 0.3 percent, to the gross tuition and
   78-6  fees, excluding refunds as provided by Section 32.39 of this code,
   78-7  of the school; or
   78-8                    (B)  $500;
   78-9              (3)  the initial registration fee for a representative
  78-10  is $60;
  78-11              (4)  the annual renewal fee for a representative is
  78-12  $30;
  78-13              (5)  the fee for a change of a name of a school or
  78-14  owner is $100;
  78-15              (6)  the fee for a change of an address of a school is
  78-16  $180;
  78-17              (7)  the fee for a change in the name or address of a
  78-18  representative or a change in the name or address of a school that
  78-19  causes the reissuance of a representative permit is $10;
  78-20              (8)  the application fee for an additional course is
  78-21  $150, except for seminar and workshop courses, for which the fee is
  78-22  $25;
  78-23              (9)  the application fee for a director, administrative
  78-24  staff member, or instructor is $15;
  78-25              (10)  the application fee for the authority to grant
  78-26  degrees is $2,000;
  78-27              (11)  the application fee for an additional degree
   79-1  course is $250; and
   79-2              (12)  the fee for an inspection required by rule of the
   79-3  Texas Employment Commission <State Board of Education> of classroom
   79-4  facilities that are separate from the main campus is $250.
   79-5        (b)  The Texas Employment Commission <commissioner of
   79-6  education> shall periodically review and recommend adjustments in
   79-7  the level of fees to the <State Board of Education and the>
   79-8  legislature.
   79-9        (c)  For purposes of this section, the gross amount of annual
  79-10  student fees and tuition for a proprietary school is the amount
  79-11  determined by the Texas Employment Commission <State Board of
  79-12  Education> based on any report submitted by the school to the Texas
  79-13  Employment Commission <Central Education Agency> or other
  79-14  information obtained by the commission <agency>.
  79-15        (d)  In connection with the regulation of any school or
  79-16  course through a memorandum of understanding pursuant to Section
  79-17  32.12(c) of this code, the Administrator shall set an application
  79-18  and annual renewal fee, not to exceed $2,000.  The fee shall be
  79-19  approved by the Texas Employment Commission <State Board of
  79-20  Education> to be an amount reasonably calculated to cover the
  79-21  administrative costs associated with assuming the additional
  79-22  regulation.
  79-23        (e)  The fee for an investigation at a school to resolve a
  79-24  complaint filed against the school is $400.  The fee may be charged
  79-25  only if:
  79-26              (1)  the complaint could not have been resolved by
  79-27  telephone or written correspondence only;
   80-1              (2)  a representative of the Texas Employment
   80-2  Commission <Central Education Agency> visits the school as a part
   80-3  of the complaint resolution process; and
   80-4              (3)  the school is found to be at fault.
   80-5        SECTION 3.20.  Section 32.81(a), Education Code, is amended
   80-6  to read as follows:
   80-7        (a)  The cost of administration of this Chapter shall be
   80-8  included in the State budget allowance for the Texas Employment
   80-9  Commission <State Board of Education>.
  80-10        SECTION 3.21.  Sections 32.91(a), (c), and (d), Education
  80-11  Code, are amended to read as follows:
  80-12        (a)  Except as provided by Subsection (e) of this section, at
  80-13  the time that each school pays its annual renewal fee, in the years
  80-14  provided by Subsection (c) of this section, the Texas Employment
  80-15  Commission <State Board of Education> shall also collect a fee from
  80-16  the school for deposit to the credit of a special fund in the state
  80-17  treasury to be called the proprietary school tuition protection
  80-18  fund.
  80-19        (c)  <Beginning on January 1, 1990, the board shall collect
  80-20  the fee for two years.>  If on January 1, 1993, or any subsequent
  80-21  year the amount in the fund is less than $200,000, the Texas
  80-22  Employment Commission <board> shall collect a fee during that year
  80-23  by applying a percentage to each school's annual renewal fee at a
  80-24  rate that will bring the balance of the fund to $250,000.
  80-25        (d)  The state treasurer shall invest the fund in the same
  80-26  manner as other state funds.  Sufficient funds from the tuition
  80-27  protection fund shall be appropriated to the Texas Employment
   81-1  Commission <Central Education Agency administration> for the
   81-2  purpose outlined in this section.
   81-3        SECTION 3.22.  Section 32.92(a), Education Code, is amended
   81-4  to read as follows:
   81-5        (a)  If a proprietary school closes, the Texas Employment
   81-6  Commission <Central Education Agency> shall attempt to arrange for
   81-7  students of the closed school to attend another proprietary school.
   81-8        SECTION 3.23.  Section 33.01(7), Education Code, is amended
   81-9  to read as follows:
  81-10              (7)  "Commission" means the Texas Employment Commission
  81-11  <"CEA" means the Central Education Agency>.
  81-12        SECTION 3.24.  Section 33.02(a), Education Code, is amended
  81-13  to read as follows:
  81-14        (a)  Pursuant to the provisions of this chapter, the Texas
  81-15  Employment Commission <commissioner of education> may allocate
  81-16  state funds for the support of apprenticeship training programs
  81-17  that meet the criteria set forth in this chapter.
  81-18        SECTION 3.25.  Section 33.04, Education Code, is amended to
  81-19  read as follows:
  81-20        Sec. 33.04.  NOTICE OF AVAILABLE FUNDS.  In order to ensure
  81-21  <insure> that all citizens of this state <Texas> have an equal
  81-22  opportunity to benefit from apprenticeship training programs, the
  81-23  commission <State Board of Vocational Education> shall provide for
  81-24  statewide publication in a manner recommended by the advisory
  81-25  committee and intended to give actual notice to all potential
  81-26  program sponsors of the amount of funds that will be available to
  81-27  support apprenticeship training programs during the current and
   82-1  following fiscal years, the qualifications required of program
   82-2  sponsors and apprenticeship committees, and the procedures to be
   82-3  followed in applying for state funds.  The notice may also include
   82-4  other information recommended by the advisory committee and
   82-5  approved by the State Board of Vocational Education.
   82-6  Notwithstanding the foregoing, the commission <State Board of
   82-7  Vocational Education> shall publish any information concerning
   82-8  available funds given to a particular program sponsor in a manner
   82-9  recommended by the advisory committee and intended to give actual
  82-10  notice to all potential program sponsors statewide.
  82-11        SECTION 3.26.  Sections 33.07(a) and (d), Education Code, are
  82-12  amended to read as follows:
  82-13        (a)  The commission <CEA> shall maintain a clear audit trail
  82-14  of all funds appropriated for the apprenticeship system of adult
  82-15  vocational education.  For each course that is funded, the audit
  82-16  trail in the commission <CEA> shall include the following records:
  82-17              (1)  the name of the sponsoring public school district
  82-18  or state postsecondary institution;
  82-19              (2)  the name of the instructor;
  82-20              (3)  the number of students enrolled;
  82-21              (4)  the place and schedule of class meetings; and
  82-22              (5)  certification by the BAT for preparatory and
  82-23  related instruction courses that the students enrolled were
  82-24  registered apprentices.
  82-25        (d)  All state funds appropriated to the commission under
  82-26  <Central Education Agency pursuant to> this chapter are subject to
  82-27  audit by the state auditor in accordance with Chapter 321,
   83-1  Government Code.  Funds received under <pursuant to> this chapter
   83-2  by a school district or postsecondary institution are subject to
   83-3  audit as otherwise provided by law.
   83-4        SECTION 3.27.  Section 33.08, Education Code, is amended to
   83-5  read as follows:
   83-6        Sec. 33.08.  APPROPRIATION AND DISTRIBUTION OF FUNDS.
   83-7  (a)  On recommendation of the advisory committee the State Board of
   83-8  Vocational Education, in conjunction with the commission, shall
   83-9  adopt formulas and administrative procedures to be used in
  83-10  requesting appropriations of state funds as a budgetary line item
  83-11  for the Apprenticeship System of Adult Vocational Education.
  83-12        (b)  The commission <CEA> shall prepare an update to the
  83-13  Apprenticeship Related Instruction Cost Study adopted by the State
  83-14  Board of Education on February 10, 1973, prior to each biennial
  83-15  session of the legislature.
  83-16        (c)  On recommendation of the advisory committee the State
  83-17  Board of Vocational Education, in conjunction with the commission,
  83-18  shall adopt forms, formulas, and administrative procedures for the
  83-19  distribution of available funds to apprenticeship training
  83-20  programs.  Distribution formulas must be uniform in application to
  83-21  all local program sponsors.
  83-22        (d)  On recommendation of the advisory committee the State
  83-23  Board of Vocational Education, in conjunction with the commission,
  83-24  shall reserve until December 1 of each year a percentage of the
  83-25  funds appropriated under the line item described in this section to
  83-26  be used solely for apprenticeship-related instruction programs.
  83-27  This percentage shall be established by the formulas required by
   84-1  this section.  Reserved funds that are not obligated on December 1
   84-2  may be used for preparatory and supplementary instruction programs
   84-3  as well as related instruction programs.
   84-4        (e)  No funds shall be distributed to a public school
   84-5  district or state postsecondary institution until the district or
   84-6  institution has filed all reports required by this chapter, <and
   84-7  by> the State Board of Vocational Education, and the commission.
   84-8        SECTION 3.28.  Section 33.09, Education Code, is amended to
   84-9  read as follows:
  84-10        Sec. 33.09.  RULES.  The State Board of Vocational Education,
  84-11  in conjunction with the commission, shall promulgate rules
  84-12  necessary to implement the provisions of this chapter.
  84-13        SECTION 3.29.  Section 33.10(a), Education Code, is amended
  84-14  to read as follows:
  84-15        (a)  Recommendations of the advisory committee submitted to
  84-16  the State Board of Vocational Education or the commission must be
  84-17  acted on, and either accepted or rejected.
  84-18        SECTION 3.30.  Section 481.026, Government Code, is amended
  84-19  to read as follows:
  84-20        Sec. 481.026.  <DUTIES OF> LITERACY <COUNCIL; INTERAGENCY
  84-21  WORK GROUP>.  (a)  In this section, "commission" means the Texas
  84-22  Employment Commission.
  84-23        (b)  The commission <Texas Literacy Council> shall:
  84-24              (1)  advise the governor, the State Job Training
  84-25  Coordinating Council, the State Board of Education, the Texas
  84-26  Higher Education Coordinating Board, and any group interested in
  84-27  literacy on policy, planning, research, and program development;
   85-1              (2)  coordinate the development and maintenance of a
   85-2  literacy services delivery system;
   85-3              (3)  oversee the attainment of the state's literacy
   85-4  goals;
   85-5              (4)  build a partnership with the private sector in
   85-6  order to inform the objectives-setting process and to gain
   85-7  acceptance of the services of a functional literacy program;
   85-8              (5)  provide state leadership to encourage and support
   85-9  local and statewide literacy efforts;
  85-10              (6)  <advise the State Board of Education on needs,
  85-11  priorities, and standards of adult literacy education programs
  85-12  conducted in accordance with Section 11.18, Education Code;>
  85-13              <(7)>  advocate the importance of literacy to ensure
  85-14  that all in need of assistance understand the benefits of increased
  85-15  functional literacy and to ensure that the necessary resources are
  85-16  available;
  85-17              (7) <(8)>  make literacy instruction available to
  85-18  adults and out-of-school youth by ensuring that a comprehensive
  85-19  literacy instruction capacity is present in every Texas community;
  85-20              (8) <(9)>  coordinate and improve local literacy
  85-21  instruction to ensure the most efficient and effective use of
  85-22  resources to meet adult education goals;
  85-23              (9) <(10)>  identify state and local literacy programs
  85-24  and enter them in a directory for centralized referral and
  85-25  communication;
  85-26              (10) <(11)>  continue oversight of literacy needs
  85-27  analysis;
   86-1              (11) <(12)>  continue to develop an awareness campaign;
   86-2              (12) <(13)>  develop a timetable and objectives for
   86-3  reaching the proposed goals and subgoals; and
   86-4              (13) <(14)>  make recommendations to the governor,
   86-5  lieutenant governor, and speaker of the house of representatives or
   86-6  other state officials or organizations that it considers
   86-7  appropriate regarding the expenditure of funds and the
   86-8  administration of programs.
   86-9        <(b)  An interagency work group is created to advise the
  86-10  council.  The advisory work group is composed of representatives
  86-11  from the Central Education Agency, Texas State Library and Archives
  86-12  Commission, Texas Higher Education Coordinating Board, Texas
  86-13  Employment Commission, Texas Department of Corrections, Texas
  86-14  Department of Human Services, Texas Rehabilitation Commission,
  86-15  Advisory Council for Technical Vocational Education, and State Job
  86-16  Training Coordinating Council.>
  86-17        <(c)  The council shall, with advice from the advisory work
  86-18  group, develop, adopt, and present to the 72nd Legislature a
  86-19  five-year strategic plan for comprehensive Texas literacy efforts.
  86-20  The plan must include:>
  86-21              <(1)  identification of all money from private, local,
  86-22  and federal sources available for investment in state and community
  86-23  literacy programs;>
  86-24              <(2)  proposals for acquiring local, state, and federal
  86-25  money identified in A Guide to Adult Literacy Funds and Resources
  86-26  to provide maximum support for state and community programs;>
  86-27              <(3)  proposals for coordination of state government
   87-1  resources, planning, and personnel among the agencies advising the
   87-2  council, to ensure, within budget constraints and consistent with
   87-3  existing missions, general access to state support services for
   87-4  community programs;>
   87-5              <(4)  identification of program shortages and gaps in
   87-6  service delivery, and proposals to establish a comprehensive
   87-7  service delivery system for all regions of the state and all target
   87-8  populations;>
   87-9              <(5)  an appropriate balance in recommended funding and
  87-10  support services for both adult literacy training and early student
  87-11  intervention, to ensure development of a continuum of literacy
  87-12  training services targeted at family needs;>
  87-13              <(6)  a discussion of evaluation tools used to measure
  87-14  student and program performance, in order to assure policymakers of
  87-15  concrete achievements and accountability for public funds; and>
  87-16              <(7)  other items that should be included in the
  87-17  judgment of the council.>
  87-18        (c) <(d)>  The commission <department> may award literacy
  87-19  grants out of state, local, federal, and private money available to
  87-20  the commission <department> for that purpose.  Grants shall be
  87-21  awarded under guidelines set by the commission <council>.  The
  87-22  guidelines shall include a competitive request for proposal process
  87-23  that includes<, designed by the council with the assistance of its
  87-24  advisory work group.  The process shall include> criteria for
  87-25  evaluating the proposals.
  87-26        (d) <(e)>  The commission <council> may establish a Texas
  87-27  literacy trust fund for the purpose of collecting private funds for
   88-1  distribution to community literacy programs.  The fund must meet
   88-2  all applicable requirements under state and federal law necessary
   88-3  for qualification as a nonprofit trust. The fund, if established,
   88-4  shall be a separate fund kept and held in escrow and in trust by
   88-5  the state treasurer for and on behalf of the commission <council>
   88-6  as funds held outside the treasury under Section 404.073.  Unless
   88-7  prohibited by other law, the state treasurer may invest and
   88-8  reinvest the money, pending its use, in the fund in investments
   88-9  authorized by law for state funds that the state treasurer
  88-10  considers appropriate. The commission <department> shall distribute
  88-11  money from the fund under guidelines set by the commission
  88-12  <council>.
  88-13        SECTION 3.31.  Section 501.095(b), Government Code, is
  88-14  amended to read as follows:
  88-15        (b)  An agency of the state not listed in this section
  88-16  <subsection> that determines that it may provide services to
  88-17  inmates with a history of chronic unemployment may participate in
  88-18  the development of the memorandum, if the parties listed in this
  88-19  section <subsection> approve the agency's participation.
  88-20        SECTION 3.32.  Section 31.012, Human Resources Code, is
  88-21  amended to read as follows:
  88-22        Sec. 31.012.  JOB OPPORTUNITIES AND BASIC SKILLS PROGRAM.
  88-23  (a)  In the event the federal job opportunities and basic skills
  88-24  program for recipients of Aid to Families with Dependent Children
  88-25  is discontinued or is inadequate to meet the recipients' needs, the
  88-26  state shall operate a program to provide employment, education, and
  88-27  training opportunities, subject to available funds.
   89-1        (b)  A state program operated under this section shall be
   89-2  administered by the Texas Employment Commission.
   89-3        SECTION 3.33.  Section 31.0125, Human Resources Code, is
   89-4  amended to read as follows:
   89-5        Sec. 31.0125.  COMMUNITY WORK EXPERIENCE PROGRAM.  (a)
   89-6  Subject to the availability of appropriations for client support
   89-7  services, the Texas Employment Commission <department by rule>
   89-8  shall develop and implement a community work experience program in
   89-9  accordance with federal law as a part of the job opportunities and
  89-10  basic skills (JOBS) training program under Part F, Subchapter IV,
  89-11  Social Security Act (42 U.S.C. Section 682).
  89-12        (b)  In adopting rules under this section, the Texas
  89-13  Employment Commission <department> shall:
  89-14              (1)  establish the criteria for determining which
  89-15  recipients of financial assistance under this chapter who are
  89-16  eligible to participate in the JOBS training program will be
  89-17  required to participate in the community work experience program;
  89-18              (2)  ensure that participation in the community work
  89-19  experience program will not result in the displacement of an
  89-20  employee from an existing position or the elimination of a vacant
  89-21  position;
  89-22              (3)  ensure that the community work experience program
  89-23  will not impair an existing service contract or collective
  89-24  bargaining agreement;
  89-25              (4)  ensure that an entity or agency that enters into
  89-26  an agreement with the Texas Employment Commission <department>
  89-27  under this section provides to a participant, without paying the
   90-1  participant a salary, job training and work experience in certain
   90-2  areas within the entity or agency;
   90-3              (5)  require that each entity or agency that enters
   90-4  into a cooperative agreement with the Texas Employment Commission
   90-5  <department> under this section identify positions within the
   90-6  entity or agency that will enable a participant to gain the skills
   90-7  and experience necessary to be able to compete in the labor market
   90-8  for comparable positions; and
   90-9              (6)  amend the service delivery system of the JOBS
  90-10  training program to require a participant in the JOBS training
  90-11  program who is unemployed after completing the JOBS readiness
  90-12  activities outlined in the participant's employability plan,
  90-13  including job search, to participate in the community work
  90-14  experience program.
  90-15        (c)  To implement the community work experience program, the
  90-16  Texas Employment Commission <department> shall enter into written
  90-17  nonfinancial cooperative agreements with entities that receive
  90-18  funds under a federal Head Start program and with state agencies,
  90-19  including institutions of higher education or other entities of
  90-20  state government.  To be eligible to enter into a contract under
  90-21  this section, the entity or agency must employ at least 250
  90-22  persons.  The Texas Employment Commission <department> and the
  90-23  entity or agency may waive this requirement by mutual agreement.
  90-24        (d)  The Texas Employment Commission <department> and an
  90-25  entity or agency that enters into an agreement under this section
  90-26  must establish participation requirements for the entity or agency
  90-27  under the community work experience program.  The requirements must
   91-1  be contained in the agreement.
   91-2        SECTION 3.34.  Sections 101.023(b) and (c), Human Resources
   91-3  Code, are amended to read as  follows:
   91-4        (b)  The Texas Employment Commission <department> may
   91-5  establish and administer a community program for persons 55 years
   91-6  of age or older who lack suitable employment and have family
   91-7  incomes under federal poverty guidelines.
   91-8        (c)  The Texas Employment Commission <department> may
   91-9  contract with a public agency or a private, nonprofit organization
  91-10  with experience in managing similar programs to employ persons
  91-11  under this program in providing recreation, beautification,
  91-12  conservation, or restoration services, or public service employment
  91-13  positions for state, county, city, or regional governments or
  91-14  school districts.  The Texas Employment Commission <department> may
  91-15  not contract with an organization that is not a subscriber under
  91-16  the state workers' compensation law or that does not pay the
  91-17  federal minimum wage rate or the prevailing wage rate for the
  91-18  particular job, whichever is greater.
  91-19        SECTION 3.35.  Section 3, Texas Driver and Traffic Safety
  91-20  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  91-21  is amended to read as follows:
  91-22        Sec. 3.  DEFINITIONS. In this Act:
  91-23              (1)  "Commission" <"Agency" means the Central Education
  91-24  Agency, acting directly or through its authorized officers and
  91-25  agents.>
  91-26              <(2)  "Board" means the State Board of Education.>
  91-27              <(3)  "Commissioner"> means the Texas Employment
   92-1  Commission <commissioner of education> or a person knowledgeable in
   92-2  the administration of regulating driver training schools and
   92-3  designated by the commission <commissioner> to administer this Act.
   92-4              (2) <(4)>  "Driver education" means a nonvocational
   92-5  course of instruction that provides the knowledge and hands-on
   92-6  experience to prepare persons for written and practical driving
   92-7  tests that lead to authorization to operate a vehicle.
   92-8              (3) <(5)>  "Driver training school" or "school" means
   92-9  any enterprise that maintains a place of business or solicits
  92-10  business in the state, that is operated by an individual,
  92-11  association, partnership, or corporation, for the education and
  92-12  training of persons, at a primary location or extension, in driver
  92-13  education, driving safety, or any instructor development program,
  92-14  and that is not specifically exempted by this Act.
  92-15              (4) <(6)>  "Driving safety course" means a course of
  92-16  instruction intended to improve a driver's knowledge, perceptions,
  92-17  and attitudes about driving.
  92-18              (5) <(7)>  "Extension" means an entity that
  92-19  geographically extends the educational resources of a driver
  92-20  training school by offering a driving safety course in a location
  92-21  other than the main business location of the school.  An extension
  92-22  may use multiple locations to teach a driving safety course if each
  92-23  location is approved by the parent school and the commission
  92-24  <agency>.  A driver education course may not be conducted at an
  92-25  extension.  An extension of an extension is not permitted.
  92-26              (6) <(8)>  "Operator" means a person approved by a
  92-27  driving safety course owner or consignee to conduct a
   93-1  commission-approved <an agency-approved> driving safety course.
   93-2              (7) <(9)>  "Owner" means:
   93-3                    (A)  in the case of a school owned by an
   93-4  individual, the individual;
   93-5                    (B)  in the case of a school owned by a
   93-6  partnership, all full, silent, or limited partners; or
   93-7                    (C)  in the case of a school owned by a
   93-8  corporation, the corporation, its directors, officers, and each
   93-9  shareholder owning at least 10 percent of the total of the issued
  93-10  and outstanding shares.
  93-11              (8) <(10)>  "Person" means an individual, firm,
  93-12  partnership, association, corporation, or other private entity or
  93-13  combination of persons.
  93-14              (9) <(11)>  "School employee" means any person, other
  93-15  than an owner, who directly or indirectly receives compensation
  93-16  from the school for services rendered.
  93-17              (10) <(12)>  "Support" means the primary source and
  93-18  means by which a school derives revenue.
  93-19              (11) <(13)>  "Suspension of enrollment" means a ruling
  93-20  by the commission <commissioner> that restricts a school from
  93-21  accepting enrollments or reenrollments, advertising, soliciting, or
  93-22  directly or indirectly advising prospective students of its program
  93-23  or course offerings.
  93-24              (12) <(14)>  "Uniform certificate of completion" means
  93-25  a document that is printed, administered, and supplied by the
  93-26  commission <agency> to owners or primary consignees for issuance to
  93-27  students who successfully complete a commission-approved <an
   94-1  agency-approved> driving safety course and that meets the
   94-2  requirements of Section 143A, Uniform Act Regulating Traffic on
   94-3  Highways (Article 6701d, Vernon's Texas Civil Statutes).
   94-4              (13) <(15)>  "Instructor" means an individual who has
   94-5  been licensed by the commission <agency> for the type of
   94-6  instruction being given.
   94-7        SECTION 3.36.  Section 4, Texas Driver and Traffic Safety
   94-8  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
   94-9  is amended to read as follows:
  94-10        Sec. 4.  GENERAL POWERS AND DUTIES.  (a)  The commission
  94-11  <agency> shall exercise jurisdiction and control of the system of
  94-12  schools, and the commission <commissioner> shall administer this
  94-13  Act and enforce minimum standards for schools under this Act.
  94-14        (b)  The commission <board> shall enter into a memorandum of
  94-15  understanding with the Texas Rehabilitation Commission and the
  94-16  Department of Public Safety for the interagency development of
  94-17  curricula and licensing criteria for hospital and rehabilitation
  94-18  facilities that teach driver education.  The commission <agency>
  94-19  shall administer comprehensive rules governing driver education
  94-20  courses adopted by mutual agreement between the commission <board>,
  94-21  the Texas Rehabilitation Commission, and the Department of Public
  94-22  Safety.  The commission <board> shall file the rules with the
  94-23  secretary of state.
  94-24        SECTION 3.37.  Section 6, Texas Driver and Traffic Safety
  94-25  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  94-26  is amended to read as follows:
  94-27        Sec. 6.  RULES; CERTIFICATION <DUTIES OF COMMISSIONER>.
   95-1  <(a)>  The commission <commissioner> shall carry out the policies
   95-2  of this Act, adopt <enforce> rules to implement this Act <adopted
   95-3  by the board>, and certify those schools meeting the requirements
   95-4  for a driver training school license.
   95-5        <(b)  The commissioner may adopt and enforce temporary rules
   95-6  under this Act, but the temporary rules are valid only until the
   95-7  next meeting of the board.>
   95-8        SECTION 3.38.  Section 7(c), Texas Driver and Traffic Safety
   95-9  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  95-10  is amended to read as follows:
  95-11        (c)  A driver education course is exempt from this Act if it
  95-12  is:
  95-13              (1)  a vocational driver training school operated to
  95-14  train or prepare a person for a field of endeavor in a business,
  95-15  trade, technical, or industrial occupation;
  95-16              (2)  a school or training program that offers only
  95-17  instruction of purely avocational or recreational subjects as
  95-18  determined by the commission <commissioner>;
  95-19              (3)  a course of instruction or study sponsored by an
  95-20  employer for the training of its own employees, and no tuition is
  95-21  charged to a student;
  95-22              (4)  a course of study or instruction sponsored by a
  95-23  recognized trade, business, or professional organization for the
  95-24  instruction of the members of the organization with a closed
  95-25  membership;
  95-26              (5)  a school that is otherwise regulated and approved
  95-27  under any other state law; or
   96-1              (6)  a course of study conducted by a college or
   96-2  university to train unlicensed individuals.
   96-3        SECTION 3.39.  Sections 8 and 9, Texas Driver and Traffic
   96-4  Safety Education Act (Article 4413(29c), Vernon's Texas Civil
   96-5  Statutes), are amended to read as follows:
   96-6        Sec. 8.  COMPETITIVE BIDDING; ADVERTISING.  (a)  The
   96-7  commission <board> may not adopt rules to restrict competitive
   96-8  bidding or advertising by a driver training school except to
   96-9  prohibit false, misleading, or deceptive competitive bidding or
  96-10  advertising practices.  Specifically, no rule may restrict:
  96-11              (1)  the use of an advertising medium;
  96-12              (2)  the outside dimensions of a printed advertisement
  96-13  or outdoor display;
  96-14              (3)  the duration of an advertisement; or
  96-15              (4)  advertisement under a trade name.
  96-16        (b)  The commission <board> may adopt rules to restrict
  96-17  advertising by a branch location of a school so that the branch
  96-18  location adequately identifies its primary driver training school
  96-19  in any solicitation.
  96-20        Sec. 9.  Prohibitions.  A person may not:
  96-21              (1)  operate a school without a driver training school
  96-22  license issued by the commission <commissioner>;
  96-23              (2)  utilize advertising designed to mislead or deceive
  96-24  a prospective student;
  96-25              (3)  fail to notify the commission <commissioner> of
  96-26  the discontinuance of the operation of any school within three
  96-27  working days after cessation of classes and make available accurate
   97-1  records as required by this Act;
   97-2              (4)  sell, trade, or transfer a uniform certificate of
   97-3  completion to any person, school, or extension not authorized to
   97-4  possess it;
   97-5              (5)  sell, trade, or transfer a uniform certificate of
   97-6  completion to a student who has not successfully completed a
   97-7  commission-approved <an agency-approved>, six-hour driving safety
   97-8  course;
   97-9              (6)  negotiate any promissory instrument received as
  97-10  payment of tuition or other charge before completion of 75 percent
  97-11  of the course, except that before that time, the instrument may be
  97-12  assigned to a purchaser who will be subject to all the defenses
  97-13  available against the school named as payee;
  97-14              (7)  conduct any part of a commission-approved <an
  97-15  agency-approved> driver education or driving safety course without
  97-16  an instructor who is physically present in appropriate proximity to
  97-17  the student for the type of instruction being given; or
  97-18              (8)  violate any provision of this Act.
  97-19        SECTION 3.40.  Section 11, Texas Driver and Traffic Safety
  97-20  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  97-21  is amended to read as follows:
  97-22        Sec. 11.  LOCATIONS AUTHORIZED FOR INSTRUCTION.  Driving
  97-23  safety courses complying with Section 143A, Uniform Act Regulating
  97-24  Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes),
  97-25  may be taught at an extension or in a driver training school if the
  97-26  entity is approved by the commission <agency>.  Instructor
  97-27  preparation courses may be conducted at a course owner's
   98-1  facilities.  All other driver training courses must be conducted in
   98-2  <agency-approved> schools approved by the commission.
   98-3        SECTION 3.41.  Sections 12(a) and (b), Texas Driver and
   98-4  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
   98-5  Civil Statutes), are amended to read as follows:
   98-6        (a)  To operate or do business in this state, a school must
   98-7  make written application to the commission <commissioner> for a
   98-8  driver training school license.  The application must be verified,
   98-9  be in the form prescribed by the commission <board>, and include
  98-10  all information required.  A school that offers driving safety
  98-11  courses shall obtain approval from the commission <agency> for any
  98-12  extension.
  98-13        (b)  A school may not maintain, advertise, solicit for, or
  98-14  conduct any course of instruction in this state before the later
  98-15  of:
  98-16              (1)  the 30th day after the date the school submits all
  98-17  required documentation, information, and fees and a surety bond for
  98-18  a driver training school license; or
  98-19              (2)  the date the school receives a driver training
  98-20  school license from the commission <commissioner>.
  98-21        SECTION 3.42.  Section 13, Texas Driver and Traffic Safety
  98-22  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  98-23  is amended to read as follows:
  98-24         Sec. 13.  REQUISITES FOR LICENSE.  (a)  The commission
  98-25  <commissioner> shall approve the application of a school when the
  98-26  school is found, on investigation at the premises of the school, to
  98-27  meet the following criteria:
   99-1              (1)  the courses, curriculum, and instruction are of
   99-2  such quality, content, and length as may reasonably and adequately
   99-3  achieve the stated objective for which the courses, curriculum, and
   99-4  instruction are offered;
   99-5              (2)  there are in the school, and in the provision for
   99-6  behind-the-wheel instruction, adequate space, equipment,
   99-7  instructional material, and instructors to provide training of good
   99-8  quality;
   99-9              (3)  educational and experience qualifications of
  99-10  directors, instructors, and administrators are adequate;
  99-11              (4)  a copy of the schedule of tuition, fees, refund
  99-12  policy, and other charges, regulations pertaining to absence,
  99-13  grading policy, and rules of operation and conduct, and the name,
  99-14  mailing address, and telephone number of the commission <agency>
  99-15  for the purpose of directing complaints to the commission <agency>
  99-16  is furnished to each student before enrollment;
  99-17              (5)  on completion of training, each student is given a
  99-18  certificate by the school indicating the course name and
  99-19  satisfactory completion;
  99-20              (6)  adequate records as prescribed by the commission
  99-21  <commissioner> are kept to show attendance and progress or grades,
  99-22  and satisfactory standards relating to attendance, progress, and
  99-23  conduct are enforced;
  99-24              (7)  the school complies with all county, municipal,
  99-25  state, and federal regulations, including fire, building, and
  99-26  sanitation codes and assumed name registration;
  99-27              (8)  the school is financially sound and capable of
  100-1  fulfilling its commitments for training;
  100-2              (9)  the school's administrators, directors, owners,
  100-3  and instructors are of good reputation and character;
  100-4              (10)  the school has, maintains, and publishes as part
  100-5  of its student enrollment contract the proper policy for the refund
  100-6  of the unused portion of tuition, fees, and other charges if a
  100-7  student enrolled by the school fails to take the course or
  100-8  withdraws or is discontinued from the school at any time before
  100-9  completion;
 100-10              (11)  the school does not use erroneous or misleading
 100-11  advertising, either by actual statement, omission, or intimation,
 100-12  as determined by the commission <board>;
 100-13              (12)  the school does not use a name like or similar to
 100-14  the name of another existing school or tax-supported educational
 100-15  establishment in this state, unless specifically approved in
 100-16  writing by the commission <commissioner>;
 100-17              (13)  the school submits to the commission <agency> for
 100-18  approval the applicable course hour lengths and curriculum content
 100-19  for each course offered by the school;
 100-20              (14)  the school does not owe a civil penalty under
 100-21  this Act; and
 100-22              (15)  additional criteria as may be required by the
 100-23  commission <board>.
 100-24        (b)<(1)>  License, application, and registration fees shall
 100-25  be collected by the commission <commissioner> and deposited with
 100-26  the state treasurer.  Fees shall be sufficient to cover
 100-27  administrative costs and may not be subject to refund.  Each fee
  101-1  shall be set by the commission <commissioner and approved by the
  101-2  board> in an amount not to exceed 150 percent of the following:
  101-3              (1) <(A)>  the initial fee for a driver training school
  101-4  license is $1,700 plus $850 for each branch location;
  101-5              (2) <(B)(i)>  annual renewal fees as specified in this
  101-6  subsection may be waived by the commission <agency> if revenue
  101-7  generated by the sale of uniform certificates of completion is
  101-8  sufficient to fund the cost of administering this Act and Section
  101-9  143A, Uniform Act Regulating Traffic on Highways (Article 6701d,
 101-10  Vernon's Texas Civil Statutes); <and>
 101-11              (3) <(ii)>  the annual renewal fee for a school license
 101-12  shall be determined by the commission <board> in an amount
 101-13  sufficient to fund the cost of administering this Act and Section
 101-14  143A, Uniform Act Regulating Traffic on Highways (Article 6701d,
 101-15  Vernon's Texas Civil Statutes);
 101-16              (4) <(C)>  the fee for a change of address of a school
 101-17  is $180;
 101-18              (5) <(D)>  the fee for a change of name of a school or
 101-19  owner is $100;
 101-20              (6) <(E)>  the application fee for each additional
 101-21  course is $25;
 101-22              (7) <(F)>  the application fee for each director is
 101-23  $30, and for each assistant director, or administrative staff
 101-24  member is $15;
 101-25              (8) <(G)>  the fee for each extension is $35;
 101-26              (9) <(H)>  each application for an original driver
 101-27  training instructor's license shall be accompanied by a processing
  102-1  fee of $50 and an annual license fee of $25; and
  102-2              (10) <(I)>  the fee for a duplicate license, which may
  102-3  be issued if the original is lost or destroyed and an affidavit of
  102-4  that fact is filed with the commission <agency>, shall be set by
  102-5  the commission <board> in an amount sufficient to cover the costs
  102-6  of issuing the duplicate license.
  102-7        (c) <(2)>  A driver education instructor who teaches driver
  102-8  education courses in a county having a population of 50,000 or
  102-9  less, according to the most recent federal census, and who has no
 102-10  more than 200 students annually, shall be regulated by the
 102-11  commission <agency> as a school.  An instructor described by this
 102-12  subdivision shall submit a school application or renewal form plus
 102-13  all required documentation and information to the commission
 102-14  <agency>.  The commission <commissioner> may waive initial school
 102-15  fees, annual school renewal fees, or director's or administrative
 102-16  staff member's fees.  An instructor described by this subsection
 102-17  <subdivision> is not exempt from licensing requirements or fees.
 102-18        (d) <(3)>  The commission <commissioner> shall periodically
 102-19  review and adjust <recommend adjustments in> the level of fees <to
 102-20  the board and legislature>.
 102-21        (e) <(4)>  The fee for an investigation at a school to
 102-22  resolve a complaint filed against the school shall be set by the
 102-23  commission <commissioner and approved by the board>.  The complaint
 102-24  investigation fee may be charged only if:
 102-25              (1) <(A)>  the complaint could not have been resolved
 102-26  solely by telephone or written correspondence;
 102-27              (2) <(B)>  a representative of the commission <agency>
  103-1  visited the school as a part of the complaint resolution process;
  103-2  and
  103-3              (3) <(C)>  the school is found to be at fault.
  103-4        (f) <(5)>  The commission <agency> shall print and supply
  103-5  serially numbered uniform certificates of course completion to
  103-6  owners or primary consignees of courses approved under this Act.
  103-7  The commission <agency> may charge a fee of $1 for each
  103-8  certificate.  An owner or consignee may not charge an operator a
  103-9  fee in excess of the fee paid to the commission <agency> for a
 103-10  certificate.
 103-11        (g) <(6)>  The commission <commissioner, with approval of the
 103-12  board,> may increase any fee authorized under this section
 103-13  <subsection> at a rate that does not exceed the increase in the
 103-14  Consumer Price Index for All Urban Consumers published by the
 103-15  Department of Labor.  Fees under this section <subsection> do not
 103-16  have to be increased annually.
 103-17        (h) <(7)>  Fees collected under this section <subsection>
 103-18  shall be deposited in the state treasury in a special account in
 103-19  the General Revenue Fund.  Money in the account may be appropriated
 103-20  only for the administration of this Act and Section 143A, Uniform
 103-21  Act Regulating Traffic on Highways (Article 6701d, Vernon's Texas
 103-22  Civil Statutes).
 103-23        (i) <(c)>  The cost of administration of this Act shall be
 103-24  included in the state budget allowance for the commission <board>.
 103-25        (j) <(d)(1)>  The commission <commissioner>, on review of an
 103-26  application for a driver training school license that is submitted
 103-27  in accordance with this Act and that meets the requirements of this
  104-1  Act, shall issue a driver training school license to the applicant.
  104-2  A driver training school license shall be in the <a> form
  104-3  prescribed <recommended> by the commission <commissioner and
  104-4  approved by the board> and shall show in a clear and conspicuous
  104-5  manner at least the following:
  104-6              (1) <(A)>  the date of issuance, effective date, and
  104-7  term of approval;
  104-8              (2) <(B)>  the name and address of the school;
  104-9              (3) <(C)>  the authority for approval and conditions of
 104-10  approval;
 104-11              <(D)  the signature of the commissioner;> and
 104-12              (4) <(E)>  any other fair and reasonable
 104-13  representations that are consistent with this Act and considered
 104-14  necessary by the commission <commissioner>.
 104-15        (k) <(2)>  The term for which a driver training school
 104-16  license is issued may not exceed one year.
 104-17        (l) <(3)(A)>  A driver training school license issued to an
 104-18  owner of the applicant school is nontransferable and is the
 104-19  property of the state.  In the event of a change in ownership of
 104-20  the school, a new owner shall, at least 30 days before the date of
 104-21  the change in ownership, apply for a new driver training school
 104-22  license.  Instead of the fees required by Subsection (b) of this
 104-23  section, the fee for a new license required under this subsection
 104-24  <subdivision> is $500, plus $200 for each branch location, if the
 104-25  purchasing entity is substantially similar to the transferring
 104-26  entity and there is no significant change in the management or
 104-27  control of the school.
  105-1        (m) <(B)>  The commission <commissioner> is not required to
  105-2  reinspect a school or a branch location after a change of its
  105-3  ownership.
  105-4        (n) <(4)>  At least 30 days before the expiration of a driver
  105-5  training school license, the school shall forward to the commission
  105-6  <commissioner> an application for renewal.  The commission
  105-7  <commissioner> may reexamine the school premises and shall renew or
  105-8  cancel the school's driver training school license.  If a school
  105-9  fails to file a complete application for renewal at least 30 days
 105-10  before the expiration date of the driver training school license,
 105-11  the school shall pay as a condition of renewal and in addition to
 105-12  any annual renewal fee a late renewal fee in an amount established
 105-13  by <board> rule of at least $100, subject to Subsection (b) of this
 105-14  section.
 105-15        (o) <(5)>  The commission <commissioner> shall visit a school
 105-16  and reexamine the school for compliance with the criteria adopted
 105-17  under this Act.
 105-18        (p) <(e)(1)>  If the commission <commissioner> determines the
 105-19  applicant for a driver training school license to be unacceptable,
 105-20  the commission <commissioner> shall state the reasons for denial,
 105-21  in writing, to the applicant.
 105-22        (q) <(2)>  Any applicant whose driver training school license
 105-23  is denied has the right of appeal under Section 18 of this Act.
 105-24        (r) <(f)(1)>  The commission <commissioner> may revoke a
 105-25  driver training school license or may place reasonable conditions
 105-26  on the continued approval represented by the license.  On
 105-27  revocation or imposition of conditions on a driver training school
  106-1  license, the commission <commissioner> shall notify the licensee,
  106-2  in writing, of the impending action and state the grounds for the
  106-3  proposed action.  The commission <commissioner> may reexamine a
  106-4  school two or more times during any year in which a notice relating
  106-5  to the school has been issued or conditions have been imposed on
  106-6  the school under this section <subsection>.
  106-7        (s) <(2)>  A driver training school license may be revoked or
  106-8  be made conditional if the commission <commissioner> has reasonable
  106-9  cause to believe that the school is guilty of a violation of this
 106-10  Act or any rule adopted under this Act.
 106-11        (t) <(g)>  Before a driver training school license may be
 106-12  issued under this Act, a bond shall be provided by the school for
 106-13  the period for which the license is to be issued, and the
 106-14  obligation of the bond shall be that neither a provision of this
 106-15  Act nor any rule adopted under this Act shall be violated by the
 106-16  school or any of its officers, agents, or employees.  A driver
 106-17  training school that teaches driver education shall submit a bond
 106-18  in the amount of $10,000 for its primary driver training school and
 106-19  $5,000 for each branch location of the school.  All other schools
 106-20  shall submit a bond in the amount of $5,000.  A bond must be a
 106-21  corporate surety bond issued by a company authorized to do business
 106-22  in the state, be payable to the state, and be used only for payment
 106-23  of a refund due to a student or potential student.  The bond shall
 106-24  be filed with the commission <commissioner> and shall be in such
 106-25  form as shall be approved by the commission <commissioner>.
 106-26  Posting of these bond amounts shall satisfy the requirements for
 106-27  financial stability for schools under this Act.
  107-1        (u) <(h)(1)>  As a condition for the granting of a driver
  107-2  training school license, a school must maintain a cancellation and
  107-3  settlement policy that provides a full refund of all money paid by
  107-4  a student if:
  107-5              (1) <(A)>  the student cancels the enrollment agreement
  107-6  or contract before midnight of the third day, excluding Saturdays,
  107-7  Sundays, and legal holidays, after the date the enrollment contract
  107-8  is signed by the prospective student, unless the student has
  107-9  completed the course and accepted a certificate of completion
 107-10  during that period; or
 107-11              (2) <(B)>  the enrollment of the student was procured
 107-12  as a result of any misrepresentation in advertising, promotional
 107-13  materials of the school, or representation made by an owner or
 107-14  employee of the school.
 107-15        (v) <(2)>  Unless only driving safety courses are proposed to
 107-16  be provided, as a condition for granting a driver training school
 107-17  license, a school shall maintain a policy for the refund of the
 107-18  unused portion of tuition, fees, and other charges if a student,
 107-19  after expiration of the cancellation period described by Subsection
 107-20  (u) <Subdivision (1)> of this section <subsection>, fails to enter
 107-21  the course, withdraws, or is discontinued from the course at any
 107-22  time before completion, and the policy must provide that:
 107-23              (1) <(A)>  refunds are based on the period of
 107-24  enrollment computed on the basis of course time expressed in clock
 107-25  hours;
 107-26              (2) <(B)>  the effective date of the termination for
 107-27  refund purposes is the earliest of the following:
  108-1                    (A) <(i)>  the last day of attendance, if the
  108-2  student's enrollment is terminated by the school;
  108-3                    (B) <(ii)>  the date of receipt of written notice
  108-4  from the student; or
  108-5                    (C) <(iii)>  the 10th school day following the
  108-6  last day of attendance;
  108-7              (3) <(C)>  if tuition is collected in advance of
  108-8  entrance and if, after expiration of the cancellation period
  108-9  described by Subsection (u) <Subdivision (1)> of this section
 108-10  <subsection>, a student does not enter the school, terminates
 108-11  enrollment, or withdraws, the school may retain up to $50 as
 108-12  administrative expenses and, from the remainder, shall refund that
 108-13  portion of the classroom tuition and fees and behind-the-wheel
 108-14  tuition and fees for services not previously received by the
 108-15  student;
 108-16              (4) <(D)>  refunds of items of extra expense to the
 108-17  student, including instructional supplies, books, laboratory fees,
 108-18  service charges, rentals, deposits, and all other such ancillary
 108-19  miscellaneous charges, will be made within 30 days after the
 108-20  effective date of enrollment termination, if these items are
 108-21  separately stated and shown in the data furnished the student
 108-22  before enrollment; and
 108-23              (5) <(E)>  refunds will be completed within 30 days
 108-24  after the effective date of enrollment termination.
 108-25        (w) <(3)>  If the course of instruction is discontinued by
 108-26  the school, preventing a student from completing the course, all
 108-27  tuition and fees paid are then due and refundable.
  109-1        (x) <(4)>  If a refund is not made within the period required
  109-2  by this section <subsection>, the school shall pay interest on the
  109-3  refund for the interval beginning with the first day following the
  109-4  expiration of the refund period and ending with the day immediately
  109-5  preceding the date the refund is made.  The commission
  109-6  <commissioner> annually shall establish the rate of interest at a
  109-7  rate sufficient to provide a deterrent to the retention of student
  109-8  funds.  The commission <agency> may except a school from the
  109-9  payment of the interest if the school makes a good-faith effort to
 109-10  refund tuition but is unable to locate the student to whom the
 109-11  refund is owed.  The school shall provide on request of the
 109-12  commission <agency> documentation of the effort to locate a
 109-13  student.
 109-14        SECTION 3.43.  Sections 15(a) and (c), Texas Driver and
 109-15  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
 109-16  Civil Statutes), are amended to read as follows:
 109-17        (a)  A person may not teach or give driver training, either
 109-18  as an individual or in a driver training school, or any phase of
 109-19  driver training or education, unless a license as an instructor has
 109-20  been secured from the commission <agency>, except that:
 109-21              (1)  a driver education instructor teaching in a public
 109-22  secondary school supported by taxation from either a local or state
 109-23  source is exempt from this section;
 109-24              (2)  a driver education instructor in a college or
 109-25  university regulated by the Texas Higher Education Coordinating
 109-26  Board is exempt; and
 109-27              (3)  an instructor in a driving safety program that
  110-1  does not provide a uniform certificate of completion to its
  110-2  graduates is exempt from this section.
  110-3        (c)  A driver training instructor license shall be carried by
  110-4  the instructor at all times while instructing.  Each license shall
  110-5  be <signed by the commissioner and> issued under the seal of the
  110-6  commission <agency>.
  110-7        SECTION 3.44.  Section 16, Texas Driver and Traffic Safety
  110-8  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  110-9  is amended to read as follows:
 110-10        Sec. 16.  DENIAL, SUSPENSION, REVOCATION GROUNDS. The
 110-11  commission <agency> may deny, suspend, or revoke the license of any
 110-12  instructor on any one or more of the following grounds:
 110-13              (1)  when the commission <agency> is satisfied that the
 110-14  applicant or licensee fails to meet the requirements to receive or
 110-15  hold a license under this Act;
 110-16              (2)  when the applicant or licensee permits fraud or
 110-17  engages in fraudulent practices with reference to the application
 110-18  to the commission <agency>, induces or countenances fraud or
 110-19  fraudulent practices on the part of any applicant for a driver's
 110-20  license or permit, or permits or engages in any other fraudulent
 110-21  practice in any action between the applicant or licensee and the
 110-22  public; or
 110-23              (3)  when the applicant or licensee fails to comply
 110-24  with the rules of the commission <agency> regarding the instruction
 110-25  of drivers in this state or fails to comply with any section of
 110-26  this Act.
 110-27        SECTION 3.45.  Section 17, Texas Driver and Traffic Safety
  111-1  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  111-2  is amended to read as follows:
  111-3        Sec. 17.  HEARING.  (a)  When there is cause to deny an
  111-4  application or to suspend or revoke any license, the commission
  111-5  <agency>, not less than 15 days before the date denial, suspension,
  111-6  or revocation action is taken, shall notify the person in writing,
  111-7  in person, or by certified mail at the last address supplied to the
  111-8  commission <agency> by the person, of the impending denial,
  111-9  suspension, or revocation, the reasons therefor, and of the
 111-10  person's right to an administrative hearing for the purpose of
 111-11  determining whether or not the evidence is sufficient to warrant
 111-12  the denial, suspension, or revocation action proposed to be taken
 111-13  by the commission <agency>. If, within 20 days after the date of
 111-14  personal service of notice or the date notice was deposited in the
 111-15  United States mail, the person has not made a written request to
 111-16  the commission <agency> for an administrative hearing, the
 111-17  commission <agency> is authorized to deny, suspend, or revoke the
 111-18  license without a hearing.  On receipt by the commission <agency>
 111-19  of a written request of the person within the 20-day period, an
 111-20  opportunity for an administrative hearing shall be afforded. In no
 111-21  case shall the hearing be held less than 10 days after the date
 111-22  written notification thereof, including a copy of the charges,
 111-23  shall have been given the person by personal service or by
 111-24  certified mail sent to the last address supplied to the commission
 111-25  <agency> by the applicant or licensee.
 111-26        (b)  The commission <agency> shall conduct the administrative
 111-27  hearing and is authorized to administer oaths and issue subpoenas
  112-1  for the attendance of witnesses and the production of relevant
  112-2  books, papers, and documents. On the basis of the evidence
  112-3  submitted at the hearing, the commission <agency> shall take
  112-4  whatever action it deems necessary in denying the application or
  112-5  suspending or revoking the license.
  112-6        SECTION 3.46.  Sections 18(a)-(d), Texas Driver and Traffic
  112-7  Safety Education Act (Article 4413(29c), Vernon's Texas Civil
  112-8  Statutes), are amended to read as follows:
  112-9        (a)  An applicant aggrieved by the denial of any license by
 112-10  the commission <commissioner> has the right to appeal the decision
 112-11  of the commission <commissioner> and request a hearing before the
 112-12  commission <commissioner> within 15 days after the date of receipt
 112-13  of notice.  On receipt of a request for a hearing, the commission
 112-14  <commissioner> shall set a time and place for the hearing and send
 112-15  notice to the school of the time and place.  A hearing shall be
 112-16  held within 30 days after the date of receipt of the request.  At
 112-17  the hearing, an applicant may appear in person or by counsel and
 112-18  present evidence in support of the granting of the license.  Any
 112-19  interested person may appear and present oral or documentary
 112-20  evidence to the commission <commissioner> concerning the issuance
 112-21  of a driver training school license to the applicant.  Within 10
 112-22  days after the date of the hearing, the commission <commissioner>
 112-23  shall notify the applicant of the commission's <commissioner's>
 112-24  affirmance or revocation of the denial of any license.
 112-25        (b)  The commission's <commissioner's> decision may be
 112-26  appealed to a district court in Travis County.
 112-27        (c)  Unless stayed by the court on showing of good cause, the
  113-1  commission's <commissioner's> decision may not be superseded during
  113-2  appeal.
  113-3        (d)  On filing of the lawsuit, citation shall be served on
  113-4  the commission <commissioner>, which <who> shall cause to be made a
  113-5  complete record of all proceedings had before the commission
  113-6  <commissioner> and certify a copy of the proceedings to the court.
  113-7  Trial before the court shall be on the basis of the record made
  113-8  before the commission <commissioner>, and the court shall make its
  113-9  decision based on the record.  The commission's <commissioner's>
 113-10  decision shall be affirmed by the court if the court finds
 113-11  substantial evidence in the record to justify the decision, unless
 113-12  the court finds the denial of the license to be:
 113-13              (1)  arbitrary and capricious;
 113-14              (2)  in violation of the constitution or laws of the
 113-15  United States or this state; or
 113-16              (3)  in violation of rules adopted by the commission
 113-17  <board> under this Act.
 113-18        SECTION 3.47.  Section 22, Texas Driver and Traffic Safety
 113-19  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
 113-20  is amended to read as follows:
 113-21        Sec. 22.  SURRENDER OF LICENSE. On the revocation or
 113-22  suspension of any license, the licensee shall within five days
 113-23  after the date of revocation or suspension surrender the license or
 113-24  licenses to the commission <agency>; failure of a licensee to do so
 113-25  shall be a violation of this Act and upon conviction shall be
 113-26  subject to the penalties hereinafter set forth.  The commission
 113-27  <agency> may restore a suspended license to the former licensee
  114-1  upon full compliance with the provisions of this Act. No suspension
  114-2  invoked hereunder shall be for a period less than 30 days nor
  114-3  longer than one year.
  114-4        SECTION 3.48.  Section 23(a), Texas Driver and Traffic Safety
  114-5  Education Act (Article 4413(29c), Vernon's Texas Civil Statutes),
  114-6  is amended to read as follows:
  114-7        (a)  If the commission <commissioner> believes that any
  114-8  school has committed any act in violation of this Act, the
  114-9  commission <commissioner> shall apply to a court of competent
 114-10  jurisdiction for an injunction restraining the commission of the
 114-11  act.
 114-12        SECTION 3.49.  Sections 24(a) and (b), Texas Driver and
 114-13  Traffic Safety Education Act (Article 4413(29c), Vernon's Texas
 114-14  Civil Statutes), are amended to read as follows:
 114-15        (a)  A person who violates this Act or a rule adopted under
 114-16  this Act is liable for a civil penalty in an amount assessed by the
 114-17  commission <commissioner> after an opportunity for a hearing in
 114-18  addition to any injunctive relief or other remedy provided by law.
 114-19  A civil penalty may not exceed $1,000 a day for each violation.
 114-20        (b)  The attorney general, at the request of the commission
 114-21  <agency>, may bring a civil action to collect a civil penalty.
 114-22        SECTION 3.50.  Sections 25 and 26, Texas Driver and Traffic
 114-23  Safety Education Act (Article 4413(29c), Vernon's Texas Civil
 114-24  Statutes), are amended to read as follows:
 114-25        Sec. 25.  SANCTIONS.  (a)  If the commission <agency>
 114-26  believes that a school has violated this Act or a rule adopted
 114-27  under this Act, the commission <agency> may, without notice:
  115-1              (1)  order a peer review of the school; or
  115-2              (2)  suspend the admission of students to the school.
  115-3        (b)  A peer review ordered under this section shall be
  115-4  conducted by a peer review team composed of knowledgeable persons
  115-5  selected by the commission <agency>.  The team shall provide the
  115-6  commission <agency> with an objective assessment of the content of
  115-7  the school's curriculum and its application.  The costs of
  115-8  providing a peer review team shall be paid by the school.
  115-9        Sec. 26.  PROCEEDINGS THROUGH THE ATTORNEY GENERAL.  If any
 115-10  person violates any of the provisions of this Act, the commission
 115-11  <commissioner> shall, in the name of the State of Texas through the
 115-12  Attorney General of the State of Texas, apply in any district court
 115-13  of competent jurisdiction for an order enjoining such violation or
 115-14  for an order enforcing compliance with this Act. Upon the filing of
 115-15  a verified petition to the court, if the court or any judge thereof
 115-16  is satisfied by affidavit or otherwise that the person has violated
 115-17  this Act, it may issue a temporary injunction without notice or
 115-18  bond enjoining such continued violation, and if after a hearing it
 115-19  is established that the person violated or is violating this Act
 115-20  the court or any judge thereof may enter a decree perpetually
 115-21  enjoining the violation of or enforcing compliance with this Act.
 115-22  In case of violation of any order or decree issued under the
 115-23  provisions of this section, the court or any judge thereof may try
 115-24  and punish the offender for contempt of court.  Proceedings under
 115-25  this section shall be in addition to and not in lieu of all other
 115-26  remedies and penalties provided by this Act.
 115-27        SECTION 3.51.  The following laws are repealed:
  116-1              (1)  Section 11(b)(4), Education Code, as amended by
  116-2  Chapter 812, Acts of the 71st Legislature, Regular Session, 1989;
  116-3  and
  116-4              (2)  Section 32.22, Education Code.
  116-5                   ARTICLE 4.  TRANSITION; EMERGENCY
  116-6        SECTION 4.01.  Each program listed in Section 302.021, Labor
  116-7  Code, as added by Section 1.03 of this Act, is transferred to the
  116-8  jurisdiction of the Texas Employment Commission on the effective
  116-9  date of this Act.  A reference in a law or administrative rule to
 116-10  the agency that administered a program listed in that section
 116-11  before the effective date of this Act means the Texas Employment
 116-12  Commission.
 116-13        SECTION 4.02.  (a)  A transition oversight committee is
 116-14  created to supervise the transition of the programs listed in
 116-15  Section 302.021, Labor Code, as added by Section 1.03 of this Act,
 116-16  to the jurisdiction of the Texas Employment Commission.  The
 116-17  committee is composed of:
 116-18              (1)  the executive director of the Texas Employment
 116-19  Commission;
 116-20              (2)  the commissioner of education;
 116-21              (3)  the commissioner of human services;
 116-22              (4)  the executive director of the Texas Department on
 116-23  Aging;
 116-24              (5)  the executive director of the Texas Department of
 116-25  Commerce;
 116-26              (6)  a representative of the governor;
 116-27              (7)  a representative of the lieutenant governor; and
  117-1              (8)  a representative of the speaker of the house of
  117-2  representatives.
  117-3        (b)  The representative of the governor shall serve as
  117-4  presiding officer of the committee.
  117-5        (c)  Each state agency affected by the transfer of program
  117-6  jurisdiction shall cooperate with the committee and the Texas
  117-7  Employment Commission in formulating and implementing a transition
  117-8  plan.
  117-9        (d)  The committee shall:
 117-10              (1)  appoint a full-time staff person with clerical
 117-11  assistance as necessary to assist in implementing the duties of the
 117-12  committee; and
 117-13              (2)  require each affected state agency to develop a
 117-14  transition plan and interim operating budget as necessary to ensure
 117-15  an orderly transition.
 117-16        (e)  The committee may:
 117-17              (1)  adopt interim rules and procedures as necessary to
 117-18  implement this section, consistent with this Act and the laws of
 117-19  this state; and
 117-20              (2)  transfer staff from the affected state agencies to
 117-21  the committee to assist the committee in the implementation of its
 117-22  duties.
 117-23        (f)  The committee shall hold its initial meeting not later
 117-24  than the 30th day after the effective date of this Act.
 117-25        (g)  This section expires and the committee is abolished
 117-26  January 1, 1996.
 117-27        SECTION 4.03.  (a)  A person serving as the coordinator,
  118-1  director, manager, or other analogous officer for a program that is
  118-2  transferred to the jurisdiction of the Texas Employment Commission
  118-3  under Section 302.021, Labor Code, as added by Section 1.03 of this
  118-4  Act, on the day before the effective date of this Act may continue
  118-5  to serve in that capacity until January 1, 1996, but shall report
  118-6  to that commission as of the effective date of this Act.
  118-7        (b)  The Texas Employment Commission shall appoint a person
  118-8  who meets the qualifications for service in a position affected by
  118-9  Subsection (a) of this section not later  than January 1, 1996.  A
 118-10  person serving under Subsection (a) of this section is eligible for
 118-11  appointment under this subsection.
 118-12        (c)  A person serving as a member of the Texas Employment
 118-13  Commission on the day before the effective date of this Act may
 118-14  continue to serve in that capacity on the commission under Chapter
 118-15  301, Labor Code, as added by this Act, until the end of the term to
 118-16  which the member was originally appointed.
 118-17        (d)  A person serving as the agency administrator of the
 118-18  Texas Employment Commission on the day before the effective date of
 118-19  this Act is eligible for appointment as executive director of that
 118-20  commission under Chapter 301, Labor Code, as added by this Act.  To
 118-21  serve as executive director, that person must comply with the bond
 118-22  requirement adopted under Section 301.041(c), Labor Code, as added
 118-23  by this Act, not later than January 1, 1996.
 118-24        SECTION 4.04.  (a)  In addition to the new changes in law
 118-25  made by this Act relating to job training and school dropout
 118-26  prevention, this Act conforms Sections 305.021(a) and (b), Labor
 118-27  Code, as added by this Act, to changes made by Section 1, Chapter
  119-1  183, Acts of the 73rd Legislature,  Regular Session, 1993.
  119-2        (b)  Section 1, Chapter 183, Acts of the 73rd Legislature,
  119-3  Regular Session, 1993, is repealed.
  119-4        SECTION 4.05.  The importance of this legislation and the
  119-5  crowded condition of the calendars in both houses create an
  119-6  emergency and an imperative public necessity that the
  119-7  constitutional rule requiring bills to be read on three several
  119-8  days in each house be suspended, and this rule is hereby suspended,
  119-9  and that this Act take effect and be in force from and after its
 119-10  passage, and it is so enacted.