H.B. No. 1863
    1-1                                AN ACT
    1-2  relating to eligibility for and the provision of services and
    1-3  programs for needy people, including children; to assistance in
    1-4  becoming or remaining self-dependent; and to the responsibility of
    1-5  parents and others to assist needy people, including children, in
    1-6  becoming or remaining self-dependent; providing penalties.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8                ARTICLE 1.  GENERAL WELFARE PROVISIONS
    1-9        SECTION 1.01.  ASSISTANCE PRIORITY IS WORK.  Section 31.001,
   1-10  Human Resources Code, is amended to read as follows:
   1-11        Sec. 31.001.  AID TO FAMILIES WITH DEPENDENT CHILDREN.  The
   1-12  department shall provide financial assistance and services to
   1-13  families with dependent children in accordance with the provisions
   1-14  of this chapter.  The department shall give first priority in
   1-15  administering this chapter to assisting an adult recipient of or
   1-16  unemployed applicant for the financial assistance and services in
   1-17  finding and retaining a job.
   1-18        SECTION 1.02.  DEPENDENT CHILD'S INCOME.  (a)  Subchapter A,
   1-19  Chapter 31, Human Resources Code, is amended by adding Section
   1-20  31.0031 to read as follows:
   1-21        Sec. 31.0031.  DEPENDENT CHILD'S INCOME.  The department may
   1-22  not consider any income earned by a dependent child who is
   1-23  attending school and whose income is derived from the child's
   1-24  part-time employment for purposes of determining:
    2-1              (1)  the amount of financial assistance granted to an
    2-2  individual under this chapter for the support of dependent
    2-3  children; or
    2-4              (2)  whether the family meets household income and
    2-5  resource requirements for eligibility for financial assistance
    2-6  under this chapter.
    2-7        (b)  This section takes effect September 1, 1995, and applies
    2-8  to income earned by the dependent child of an individual who
    2-9  receives financial assistance under Chapter 31, Human Resources
   2-10  Code, on or after the effective date of this section, regardless of
   2-11  the date on which eligibility for that assistance was determined.
   2-12        SECTION 1.03.  NEEDS ASSESSMENT.  Subchapter A, Chapter 31,
   2-13  Human Resources Code, is amended by adding Section 31.0095 to read
   2-14  as follows:
   2-15        Sec. 31.0095.  NEEDS ASSESSMENT.  The department shall assist
   2-16  a recipient in assessing the particular needs of that recipient and
   2-17  the recipient's family upon notification of entry into the JOBS
   2-18  program.  The department and the recipient shall develop an
   2-19  employability plan to help the recipient achieve independence from
   2-20  public assistance granted to the recipient and the recipient's
   2-21  family.
   2-22        SECTION 1.04.  SUPPORT SERVICES.  Section 31.010, Human
   2-23  Resources Code, is amended to read as follows:
   2-24        Sec. 31.010.  SUPPORT SERVICES.  (a)  Subject to the
   2-25  availability of funds, the <The> department shall <may> provide a
   2-26  recipient with support services designed to assist the recipient
   2-27  and the recipient's family to <needy families and individuals>
    3-1  attain and retain the capability of independence and self-care <if
    3-2  federal matching funds are available for the support of the
    3-3  services>.
    3-4        (b)  The department shall consider the needs assessment and
    3-5  employability plan developed under Section 31.0095 in determining
    3-6  the support services needed.
    3-7        (c)  Support services include:
    3-8              (1)  education, using public or private schools as
    3-9  necessary;
   3-10              (2)  child care;
   3-11              (3)  transportation assistance;
   3-12              (4)  work skills and job readiness training;
   3-13              (5)  instruction in job search techniques; and
   3-14              (6)  job placement.
   3-15        (d)  The department by rule shall provide for implementation
   3-16  of the support services.
   3-17        (e)  The department may contract with other state agencies,
   3-18  community colleges, technical schools, residence training
   3-19  facilities, or public or private entities to provide support
   3-20  services under this section.
   3-21        SECTION 1.05.  PARENTING SKILLS TRAINING; SAFETY OF CHILDREN.
   3-22  Section 31.0135, Human Resources Code, is amended to read as
   3-23  follows:
   3-24        Sec. 31.0135.  PARENTING SKILLS TRAINING.  (a)  The
   3-25  department, in cooperation with the Central Education Agency, the
   3-26  Department of Protective and Regulatory Services, the Texas
   3-27  Agricultural Extension Service, or any other public or private
    4-1  entity, shall develop a parenting skills training program to assist
    4-2  a recipient of assistance under this chapter, including a child who
    4-3  receives assistance on behalf of a dependent child.  The program
    4-4  shall include nutrition education, budgeting and survival skills,
    4-5  and instruction on the necessity of physical and emotional safety
    4-6  for children.
    4-7        (b)  The department shall require that a caretaker relative
    4-8  or parent <child who is in school and> who is receiving assistance
    4-9  under this chapter on behalf of a dependent child receive parenting
   4-10  skills training as needed.
   4-11        (c)  In this section, "caretaker relative" means a person who
   4-12  is listed as a relative eligible to receive assistance under 42
   4-13  U.S.C. Section 602(a).
   4-14        SECTION 1.06.  TEENAGE PREGNANCY.  Section 31.0315, Human
   4-15  Resources Code, is amended by adding Subsection (f) to read as
   4-16  follows:
   4-17        (f)  If the parent of a dependent child is under 17 years of
   4-18  age and the Title IV-D agency determines that the child's birth may
   4-19  be the result of sexual conduct that constitutes a criminal offense
   4-20  under the Penal Code, that agency shall refer the case to the
   4-21  appropriate law enforcement agency for further investigation.
   4-22        SECTION 1.07.  RESOURCE LIMITS FOR AFDC RECIPIENTS.  Section
   4-23  31.032, Human Resources Code, is amended by adding Subsections (d)
   4-24  and (e) to read as follows:
   4-25        (d)  In determining whether an applicant is eligible for
   4-26  assistance, the department shall exclude from the applicant's
   4-27  available resources:
    5-1              (1)  $2,000 for the applicant's household or $3,000 if
    5-2  there is a person with a disability or a person who is at least 60
    5-3  years of age in the applicant's household; and
    5-4              (2)  the fair market value of the applicant's ownership
    5-5  interest in a motor vehicle, but not more than the amount
    5-6  determined according to the following schedule:
    5-7                    (A)  $4,550 on or after September 1, 1995, but
    5-8  before October 1, 1995;
    5-9                    (B)  $4,600 on or after October 1, 1995, but
   5-10  before October 1, 1996;
   5-11                    (C)  $5,000 on or after October 1, 1996, but
   5-12  before October 1, 1997; and
   5-13                    (D)  $5,000 plus or minus an amount to be
   5-14  determined annually beginning on October 1, 1997, to reflect
   5-15  changes in the new car component of the Consumer Price Index for
   5-16  All Urban Consumers published by the Bureau of Labor Statistics.
   5-17        (e)  If federal regulations governing the maximum allowable
   5-18  resources under the food stamp program, 7 CFR Part 273, are
   5-19  revised, the department shall adjust the standards that determine
   5-20  available resources under Subsection (d) to reflect those
   5-21  revisions.
   5-22                 ARTICLE 2.  RESPONSIBILITY AGREEMENT
   5-23        SECTION 2.01.  APPLICATION FOR ASSISTANCE.  (a)  Section
   5-24  31.031, Human Resources Code, is amended by adding Subsection (c)
   5-25  to read as follows:
   5-26        (c)  The department shall require the applicant to provide
   5-27  proof to the department that each person who will receive
    6-1  assistance under this chapter is:
    6-2              (1)  a United States citizen or has a satisfactory
    6-3  immigration status as defined in Title IV, Social Security Act (42
    6-4  U.S.C.  Section 602(a)(33)), in effect as of the effective date of
    6-5  this Act; and
    6-6              (2)  a resident of this state.
    6-7        (b)  Section 31.031, Human Resources Code, as amended by this
    6-8  article, applies to a person who applies for financial assistance
    6-9  under Chapter 31, Human Resources Code, on or after the effective
   6-10  date of this article.  A person who applied for financial
   6-11  assistance before the effective date of this article is governed by
   6-12  the law in effect when the person applied, and that law is
   6-13  continued in effect for that purpose.
   6-14        SECTION 2.02.  RESPONSIBILITY AGREEMENT.  (a)  Subchapter A,
   6-15  Chapter 31, Human Resources Code, is amended by adding Sections
   6-16  31.0031, 31.0032, 31.0033, and 31.0034 to read as follows:
   6-17        Sec. 31.0031.  RESPONSIBILITY AGREEMENT.  (a)  The department
   6-18  shall require each adult recipient to sign a bill of
   6-19  responsibilities that defines the responsibilities of the state and
   6-20  of the recipient and encourages personal responsibility.  The
   6-21  department shall explain to the applicant the work requirements and
   6-22  time-limited benefits in addition to the other provisions of the
   6-23  agreement before the applicant signs the agreement.  The department
   6-24  shall provide each applicant with a copy of the signed agreement.
   6-25  The agreement shall include pertinent case information, including
   6-26  the case number and a listing of the state's benefits.
   6-27        (b)  The responsibilities of the state shall include
    7-1  administering programs, within available resources, that:
    7-2              (1)  promote clear and tangible goals for recipients;
    7-3              (2)  enable parents to provide for their children's
    7-4  basic necessities in a time-limited benefits program;
    7-5              (3)  promote education, job training, and workforce
    7-6  development;
    7-7              (4)  support the family structure through life and
    7-8  parenting skills training;
    7-9              (5)  are efficient, fraud-free, and easily accessible
   7-10  by recipients;
   7-11              (6)  gather accurate client information; and
   7-12              (7)  give communities the opportunity to develop
   7-13  alternative programs that meet the unique needs of local
   7-14  recipients.
   7-15        (c)  The department shall adopt rules governing sanctions and
   7-16  penalties under this section to or for a person who fails to comply
   7-17  with each applicable requirement of the responsibility agreement
   7-18  prescribed by this section.
   7-19        (d)  The responsibility agreement shall require that:
   7-20              (1)  the parent of a dependent child cooperate with the
   7-21  department and the Title IV-D agency if necessary to establish the
   7-22  paternity of the dependent child and to establish or enforce child
   7-23  support;
   7-24              (2)  if adequate and accessible providers of the
   7-25  services are available in the geographic area and subject to the
   7-26  availability of funds, each dependent child, as appropriate,
   7-27  complete early and periodic screening, diagnosis, and treatment
    8-1  checkups on schedule and receive the immunization series prescribed
    8-2  by Section 161.004, Health and Safety Code, unless the child is
    8-3  exempt under that section;
    8-4              (3)  each adult recipient, or teen parent recipient who
    8-5  has completed the requirements regarding school attendance in
    8-6  Subdivision (6), not voluntarily terminate paid employment of at
    8-7  least 30 hours each week without good cause in accordance with
    8-8  rules adopted by the department;
    8-9              (4)  each adult recipient for whom a needs assessment
   8-10  is conducted participate in an activity to enable that person to
   8-11  become self-sufficient by:
   8-12                    (A)  continuing the person's education or
   8-13  becoming literate;
   8-14                    (B)  entering a job placement or employment
   8-15  skills training program;
   8-16                    (C)  serving as a volunteer in the person's
   8-17  community; or
   8-18                    (D)  serving in a community work program or other
   8-19  work program approved by the department;
   8-20              (5)  each caretaker relative or parent receiving
   8-21  assistance not use, sell, or possess marihuana or a controlled
   8-22  substance in violation of Chapter 481, Health and Safety Code, or
   8-23  abuse alcohol;
   8-24              (6)  each dependent child younger than 18 years of age
   8-25  or teen parent younger than 19 years of age attend school
   8-26  regularly, unless the child has a high school diploma or high
   8-27  school equivalency certificate or is specifically exempted from
    9-1  school attendance under Section 21.033, Education Code;
    9-2              (7)  each recipient comply with department rules
    9-3  regarding proof of school attendance; and
    9-4              (8)  each recipient attend parenting skills training
    9-5  classes, as determined by the needs assessment.
    9-6        (e)  In conjunction with the Central Education Agency, the
    9-7  department by rule shall ensure compliance with the school
    9-8  attendance requirements of Subsection (d)(6) by establishing
    9-9  criteria for:
   9-10              (1)  determining whether a child is regularly attending
   9-11  school;
   9-12              (2)  exempting a child from school attendance in
   9-13  accordance with Subchapter B, Chapter 21, Education Code; and
   9-14              (3)  determining when an absence is excused.
   9-15        (f)  The department by rule may provide for exemptions from
   9-16  Subsection (d)(4) or for a teen parent under Subsection (d)(6).
   9-17  The department may not require participation in an activity under
   9-18  Subsection (d)(4) or for a teen parent under Subsection (d)(6) if
   9-19  funding for support services is unavailable.
   9-20        (g)  In this section, "caretaker relative" means a person who
   9-21  is listed as a relative eligible to receive assistance under 42
   9-22  U.S.C. Section 602(a).
   9-23        Sec. 31.0032.  PENALTIES AND SANCTIONS.  (a)  If after an
   9-24  investigation the department determines that a person is not
   9-25  complying with a requirement of the responsibility agreement
   9-26  required under Section 31.0031, the department shall apply
   9-27  appropriate sanctions or penalties regarding the assistance
   10-1  provided to or for that person under this chapter.
   10-2        (b)  The department shall immediately notify the caretaker
   10-3  relative, second parent, or payee receiving the financial
   10-4  assistance whether sanctions will be applied under this section.
   10-5        (c)  This section does not prohibit the department from
   10-6  providing medical assistance, child care, or any other social or
   10-7  support services for an individual subject to sanctions or
   10-8  penalties under this chapter.
   10-9        Sec. 31.0033.  GOOD CAUSE NONCOMPLIANCE HEARING.  (a)  If the
  10-10  department determines that penalties and sanctions should be
  10-11  applied under Section 31.0032, the person determined to have not
  10-12  complied or, if different, the person receiving the financial
  10-13  assistance may request a hearing to show good cause for
  10-14  noncompliance not later than the 13th day after the date on which
  10-15  notice is received under Section 31.0032.
  10-16        (b)  The department shall promptly conduct a hearing if a
  10-17  timely request is made under Subsection (a).
  10-18        (c)  If the department finds that good cause for
  10-19  noncompliance was not shown at a hearing, the department shall
  10-20  apply appropriate sanctions or penalties to or for that person
  10-21  until the department determines that the person is in compliance
  10-22  with the terms of the responsibility agreement.
  10-23        (d)  The department by rule shall establish criteria for good
  10-24  cause noncompliance and guidelines for what constitutes a good
  10-25  faith effort on behalf of a recipient under this section.
  10-26        Sec. 31.0034.  ANNUAL REPORT.  The department shall prepare
  10-27  and submit an annual report to the legislature that contains
   11-1  statistical information regarding persons who are applying for or
   11-2  receiving financial assistance or services under this chapter,
   11-3  including the number of persons receiving assistance, the type of
   11-4  assistance those persons are receiving, and the length of time
   11-5  those persons have been receiving the assistance.  The report also
   11-6  must contain information on:
   11-7              (1)  the number of persons to whom sanctions and time
   11-8  limits apply;
   11-9              (2)  the number of persons under each time limit
  11-10  category;
  11-11              (3)  the number of persons who are exempt from
  11-12  participation under Section 31.012(c);
  11-13              (4)  the number of persons who were receiving financial
  11-14  assistance under this chapter but are no longer eligible to receive
  11-15  that assistance because they failed to comply with the requirements
  11-16  prescribed by Section 31.0031;
  11-17              (5)  the number of persons who are no longer eligible
  11-18  to receive financial assistance or transitional benefits under this
  11-19  chapter because:
  11-20                    (A)  the person's household income has increased
  11-21  due to employment; or
  11-22                    (B)  the person has exhausted the person's
  11-23  benefits under this chapter; and
  11-24              (6)  the number of persons receiving child care, job
  11-25  training, or other support services designed to assist the
  11-26  transition to self-sufficiency.
  11-27        (b)  Except as provided by Subsection (c) of this section,
   12-1  Section 31.0032, Human Resources Code, as added by this article,
   12-2  applies to a person receiving financial assistance on or after the
   12-3  effective date of this article, regardless of the date on which
   12-4  eligibility for that assistance is determined.
   12-5        (c)  Not later than September 1, 1996, the Texas Department
   12-6  of Human Services shall require each recipient who applied for
   12-7  financial assistance before the effective date of this article to
   12-8  sign the responsibility agreement prescribed by Section 31.0031,
   12-9  Human Resources Code, as added by this article.  The department may
  12-10  not enforce the terms of the agreement against a recipient who has
  12-11  not had an opportunity to sign the agreement.
  12-12        SECTION 2.03.  Conforming Amendment:  Mandatory School
  12-13  Attendance.  Subchapter A, Chapter 11, Education Code, is amended
  12-14  by adding Section 11.2094 to read as follows:
  12-15        Sec. 11.2094.  Attendance Records:  AFDC Recipients.  The
  12-16  Central Education Agency shall cooperate with the Texas Department
  12-17  of Human Services in providing applicants for and recipients of
  12-18  financial assistance under Chapter 31, Human Resources Code, with
  12-19  the appropriate records to demonstrate satisfactory attendance and
  12-20  progress of dependent children and teen parents according to rules
  12-21  adopted by the department.
  12-22        SECTION 2.04.  CONFORMING AMENDMENT:  IMMUNIZATIONS FOR
  12-23  CHILDREN.  Section 31.031, Human Resources Code, is amended by
  12-24  adding Subsections (d), (e), (f), and (g) to read as follows:
  12-25        (d)  The department shall require the applicant to provide
  12-26  proof to the department that each child five years of age or
  12-27  younger, or a child who is not enrolled in public school, for whom
   13-1  the applicant will receive assistance:
   13-2              (1)  has been immunized in accordance with Section
   13-3  161.004, Health and Safety Code;
   13-4              (2)  is currently receiving an immunization series in
   13-5  accordance with Section 161.004, Health and Safety Code, if the
   13-6  child is of sufficient age; or
   13-7              (3)  is exempted under Section 161.004(d), Health and
   13-8  Safety Code.
   13-9        (e)  An applicant who cannot provide the proof required by
  13-10  Subsection (d) at the time of application shall provide the proof
  13-11  not later than the 180th day after the date the department
  13-12  determines the applicant is eligible for financial assistance.
  13-13        (f)  The department shall provide the applicant with
  13-14  information regarding immunization services available in the
  13-15  applicant's residential area.  If the applicant does not read or
  13-16  comprehend English, the department shall provide the information in
  13-17  a language that the applicant reads or comprehends.
  13-18        (g)  The department by rule shall provide sanctions for a
  13-19  financial assistance recipient's failure to comply with Subsection
  13-20  (d) or (e).
  13-21          ARTICLE 3.  TIME-LIMITED AND TRANSITIONAL BENEFITS
  13-22        SECTION 3.01.  TIME-LIMITED BENEFITS.  (a)  Subchapter A,
  13-23  Chapter 31, Human Resources Code, is amended by adding Section
  13-24  31.0065 to read as follows:
  13-25        Sec. 31.0065.  TIME-LIMITED BENEFITS.  (a)  The department
  13-26  may provide financial assistance under this chapter only in
  13-27  accordance with the time limits specified by this section.  The
   14-1  department by rule may provide for exceptions to these time limits
   14-2  if severe personal hardship or community economic factors prevent
   14-3  the recipient from obtaining employment or if the state is unable
   14-4  to provide support services.
   14-5        (b)  The department shall limit financial assistance and
   14-6  transitional benefits in accordance with the following schedule:
   14-7              (1)  financial assistance is limited to a cumulative
   14-8  total of 12 months and transitional benefits are limited to 12
   14-9  months if the person receiving financial assistance on behalf of a
  14-10  dependent child has:
  14-11                    (A)  a high school diploma, a high school
  14-12  equivalency certificate, or a certificate or degree from a two-year
  14-13  or four-year institution of higher education or technical or
  14-14  vocational school; or
  14-15                    (B)  recent work experience of 18 months or more;
  14-16              (2)  financial assistance is limited to a cumulative
  14-17  total of 24 months and transitional benefits are limited to 12
  14-18  months if the person receiving financial assistance on behalf of a
  14-19  dependent child has:
  14-20                    (A)  completed three years of high school; or
  14-21                    (B)  recent work experience of not less than six
  14-22  or more than 18 months; and
  14-23              (3)  financial assistance is limited to a cumulative
  14-24  total of 36 months and transitional benefits of 12 months if the
  14-25  person receiving financial assistance on behalf of a dependent
  14-26  child has:
  14-27                    (A)  completed less than three years of high
   15-1  school; and
   15-2                    (B)  less than six months of work experience.
   15-3        (c)  If the recipient has completed less than three years of
   15-4  high school and has less than six months work experience, the
   15-5  department shall perform an in-depth assessment of the needs of
   15-6  that person and that person's family.  If the recipient cooperates
   15-7  with the department's assessment, the time period prescribed by
   15-8  Subsection (b)(3) begins on the first anniversary of the date on
   15-9  which the department completes the assessment, as determined by the
  15-10  department.
  15-11        (d)  The computation of time limits under Subsection (b)
  15-12  begins when the adult or teen parent recipient receives
  15-13  notification under Section 31.012(b) of the availability of an
  15-14  opening in and eligibility for the job opportunity and basic skills
  15-15  (JOBS) program Part F, Subchapter IV, Social Security Act (42
  15-16  U.S.C. Section 682).
  15-17        (e)  In implementing the time-limited benefits program, the
  15-18  department:
  15-19              (1)  shall provide that a participant in the program
  15-20  may reapply with the department for financial assistance on or
  15-21  after the fifth anniversary of the date on which the participant is
  15-22  totally disqualified from receiving assistance because of the
  15-23  application of Subsection (b); and
  15-24              (2)  shall establish the criteria for determining what
  15-25  constitutes severe personal hardship under Subsection (a).
  15-26        (f)  If the department is imposing time-limited benefits on
  15-27  an individual, the department shall consider:
   16-1              (1)  the assessment of the individual's need that was
   16-2  conducted by the department, provided that if the needs assessment
   16-3  indicates discrepancies between a client's self-reported
   16-4  educational level and the client's functional abilities, the time
   16-5  limits shall be based upon the functional educational level; and
   16-6              (2)  the prevailing economic and employment conditions
   16-7  in the area of the state where the individual resides.
   16-8        (b)  The Texas Department of Human Services shall gradually
   16-9  implement Section 31.0065, Human Resources Code, as added by this
  16-10  article, by selecting at least one county in which to begin
  16-11  implementation of the program that has:
  16-12              (1)  a population of 250,000 or more; and
  16-13              (2)  low unemployment and an effective JOBS program
  16-14  placement rate.
  16-15        (c)  Section 31.0065 applies to a person receiving financial
  16-16  assistance on or after the date the section is implemented in the
  16-17  area in which the person resides, regardless of the date on which
  16-18  eligibility for that assistance is determined.  However, the Texas
  16-19  Department of Human Services may not consider financial assistance
  16-20  provided before the implementation date in determining if a person
  16-21  has exhausted assistance.
  16-22        (d)  The department shall submit to the governor and 75th,
  16-23  76th, and 77th legislatures a report concerning the effectiveness
  16-24  of the program.  Each report must include an analysis of the
  16-25  characteristics and demographics of recipients and any
  16-26  recommendation for expansion of the program including a timetable
  16-27  for expansion.  The department shall notify members of the 75th,
   17-1  76th, and 77th legislatures and the standing committees of the
   17-2  senate and house of representatives having primary jurisdiction
   17-3  over the department of the filing of the report.
   17-4        SECTION 3.02.  TRANSITIONAL CHILD-CARE SERVICES.  Subchapter
   17-5  A, Chapter 31, Human Resources Code, is amended by adding Section
   17-6  31.0035 to read as follows:
   17-7        Sec. 31.0035.  TRANSITIONAL CHILD-CARE SERVICES.  (a)  The
   17-8  department shall provide necessary transitional child-care
   17-9  services, in accordance with department rules and federal law, to a
  17-10  person who was receiving financial assistance under this chapter
  17-11  but is no longer eligible to receive the assistance because:
  17-12              (1)  the person's household income has increased; or
  17-13              (2)  the person has exhausted the person's benefits
  17-14  under Section 31.0065.
  17-15        (b)  Except as provided by Section 31.012(c), the department
  17-16  may provide the child-care services only until the earlier of:
  17-17              (1)  the end of the applicable period prescribed by
  17-18  Section 31.0065 for the provision of transitional benefits; or
  17-19              (2)  the first anniversary of the date on which the
  17-20  person becomes ineligible for financial assistance because of
  17-21  increased household income.
  17-22        (c)  The department by rule shall adopt a system of
  17-23  co-payments in order to have a person who receives child-care
  17-24  services under this section contribute an amount toward the cost of
  17-25  the services according to the person's ability to pay.
  17-26        (d)  The department by rule shall provide for sanctions for a
  17-27  person who is financially able to contribute the amount required by
   18-1  Subsection (c) but fails to pay.
   18-2        SECTION 3.03.  TRANSITIONAL MEDICAL ASSISTANCE.  Subchapter
   18-3  B, Chapter 32, Human Resources Code, is amended by adding Section
   18-4  32.0255 to read as follows:
   18-5        Sec. 32.0255.  TRANSITIONAL MEDICAL ASSISTANCE.  (a)  The
   18-6  state shall provide transitional medical assistance, in accordance
   18-7  with state rules and federal law, to a person who was receiving
   18-8  financial assistance under Chapter 31 but is no longer eligible to
   18-9  receive the assistance because:
  18-10              (1)  the person's household income has increased; or
  18-11              (2)  the person has exhausted the person's benefits
  18-12  under Section 31.0065.
  18-13        (b)  Except as provided by Section 31.012(c), the state may
  18-14  provide the medical assistance only until the earlier of:
  18-15              (1)  the end of the applicable period prescribed by
  18-16  Section 31.0065 for the provision of transitional benefits; or
  18-17              (2)  the first anniversary of the date on which the
  18-18  person becomes ineligible for financial assistance because of
  18-19  increased household income.
  18-20                       ARTICLE 4.  WORK PROGRAMS
  18-21        SECTION 4.01.  EMPLOYMENT OR VOLUNTEER WORK PROGRAM.  (a)
  18-22  Section 31.012, Human Resources Code, is amended to read as
  18-23  follows:
  18-24        Sec. 31.012.  MANDATORY WORK OR PARTICIPATION IN EMPLOYMENT
  18-25  ACTIVITIES THROUGH THE JOB OPPORTUNITIES AND BASIC SKILLS PROGRAM.
  18-26  (a)  The department shall require that, during any one-month period
  18-27  in which an adult is receiving financial assistance under this
   19-1  chapter, the adult shall during that period:
   19-2              (1)  work not less than 30 hours a week; or
   19-3              (2)  participate for not less than 20 hours a week in
   19-4  an activity established under the job opportunities and basic
   19-5  skills (JOBS) training program under Part F, Subchapter IV, Social
   19-6  Security Act (42 U.S.C. Section 682) <In the event the federal job
   19-7  opportunities and basic skills program for recipients of Aid to
   19-8  Families with Dependent Children is discontinued or is inadequate
   19-9  to meet the recipients' needs, the state shall operate a program to
  19-10  provide employment, education, and training opportunities, subject
  19-11  to available funds>.
  19-12        (b)  The department by rule shall establish criteria for good
  19-13  cause noncompliance and for notification procedures regarding
  19-14  participation in work or employment activities under this section.
  19-15        (c)  A person who is the caretaker of a physically or
  19-16  mentally disabled child who requires the caretaker's presence is
  19-17  not required to participate in a program under this section.
  19-18  Effective September 1, 1995, a person is not required to
  19-19  participate in a program under this section until the person's
  19-20  youngest child at the time the person first became eligible for
  19-21  assistance reaches the age of five.  Effective September 1, 1997, a
  19-22  person is exempt until the person's youngest child at the time the
  19-23  person first became eligible for assistance reaches the age of
  19-24  four.  Notwithstanding Sections 31.0035(b) and 32.0255(b), the
  19-25  department shall provide to a person who is exempt under this
  19-26  subsection and who volunteers to participate in a program under
  19-27  Subsection (a)(2) six months of transitional benefits in addition
   20-1  to the applicable limit prescribed by Section 31.0065.
   20-2        (b)  This section applies to a person receiving assistance on
   20-3  or after September 1, 1995, regardless of the date on which
   20-4  eligibility for that assistance is determined.
   20-5        (c)  The Texas Department of Human Services shall adopt the
   20-6  rules required by Section 31.012(b), Human Resources Code, as
   20-7  amended by this article, not later than December 1, 1995.
   20-8        (d)  On the transfer of the program under Section 31.012,
   20-9  Human Resources Code, to the Texas Workforce Commission, the Texas
  20-10  Workforce Commission shall perform all duties assigned to the Texas
  20-11  Department of Human Services under Section 31.012, Human Resources
  20-12  Code, as amended by this section.
  20-13        SECTION 4.02.  VOLUNTEER WORK EXPERIENCE.  (a)  Section
  20-14  31.0125, Human Resources Code, is amended to read as follows:
  20-15        Sec. 31.0125.  VOLUNTEER <COMMUNITY> WORK EXPERIENCE PROGRAM.
  20-16  (a)  Subject to the availability of appropriations for client
  20-17  support services, the department by rule shall develop and
  20-18  implement a volunteer <community> work experience program in
  20-19  accordance with federal law as a part of the job opportunities and
  20-20  basic skills (JOBS) training program under Part F, Subchapter IV,
  20-21  Social Security Act (42 U.S.C. Section 682).
  20-22        (b)  In adopting rules under this section, the department
  20-23  shall:
  20-24              (1)  establish the criteria for determining which
  20-25  recipients of financial assistance under this chapter who are
  20-26  eligible to participate in the JOBS training program will be
  20-27  required to participate in the volunteer <community> work
   21-1  experience program;
   21-2              (2)  ensure that participation in the volunteer
   21-3  <community> work experience program will not result in the
   21-4  displacement of an employee from an existing position or the
   21-5  elimination of a vacant position;
   21-6              (3)  ensure that the volunteer <community> work
   21-7  experience program will not impair an existing service contract or
   21-8  collective bargaining agreement;
   21-9              (4)  ensure that an entity or agency that enters into
  21-10  an agreement with the department under this section provides to a
  21-11  participant, without paying the participant a salary, job training
  21-12  and work experience in certain areas within the entity or agency;
  21-13              (5)  require that each entity or agency that enters
  21-14  into a cooperative agreement with the department under this section
  21-15  identify positions within the entity or agency that will enable a
  21-16  participant to gain the skills and experience necessary to be able
  21-17  to compete in the labor market for comparable positions; and
  21-18              (6)  amend the service delivery system of the JOBS
  21-19  training program to require a participant in the JOBS training
  21-20  program who is unemployed after completing the JOBS readiness
  21-21  activities outlined in the participant's employability plan,
  21-22  including job search, to participate in the volunteer <community>
  21-23  work experience program.
  21-24        (c)  To implement the volunteer <community> work experience
  21-25  program, the department shall enter into written nonfinancial
  21-26  cooperative agreements with entities that receive funds under a
  21-27  federal Head Start program, <and with> state agencies, including
   22-1  institutions of higher education, <or> other entities of state or
   22-2  local government, or private sector or nonprofit organizations or
   22-3  foundations.  <To be eligible to enter into a contract under this
   22-4  section, the entity or agency must employ at least 250 persons.
   22-5  The department and the entity or agency may waive this requirement
   22-6  by mutual agreement.>
   22-7        (d)  The department and an entity or agency that enters into
   22-8  an agreement under this section must establish participation
   22-9  requirements for the entity or agency under the volunteer
  22-10  <community> work experience program.  The requirements must be
  22-11  contained in the agreement.
  22-12        (b)  This section applies to a person receiving assistance on
  22-13  or after September 1, 1995, regardless of the date on which
  22-14  eligibility for that assistance is determined.
  22-15        (c)  On the transfer of the program under Section 31.0125,
  22-16  Human Resources Code, to the Texas Workforce Commission, the Texas
  22-17  Workforce Commission shall perform all duties assigned to the Texas
  22-18  Department of Human Services under Section 31.0125, Human Resources
  22-19  Code, as amended by this section.
  22-20        SECTION 4.03.  EMPLOYMENT PROGRAMS.  Subchapter A, Chapter
  22-21  31, Human Resources Code, is amended by adding Section 31.0126 to
  22-22  read as follows:
  22-23        Sec. 31.0126.  EMPLOYMENT PROGRAMS.  (a)  In cooperation with
  22-24  the state agency charged with primary responsibility for job
  22-25  training, employment, and workforce development in this state, the
  22-26  department by rule shall develop the following programs to assist
  22-27  recipients of financial assistance and services under this chapter
   23-1  in finding and retaining employment:
   23-2              (1)  a work first program that provides a participant
   23-3  job readiness training and employment information and services that
   23-4  will motivate the participant to find and apply for a job through
   23-5  job clubs, job readiness activities, and job search activities;
   23-6              (2)  a business internship program that provides a
   23-7  participant the opportunity to obtain marketable job skills through
   23-8  an internship in a participating business;
   23-9              (3)  a Texas works program that:
  23-10                    (A)  is operated by a nonprofit group or local
  23-11  governmental entity;
  23-12                    (B)  provides to a participant motivational and
  23-13  job readiness training by placing the participant in a job for a
  23-14  period of several months;
  23-15                    (C)  ensures that the participant is visited at
  23-16  work and receives counseling and help in resolving any work-related
  23-17  or personal problems; and
  23-18                    (D)  receives funding on the basis of
  23-19  participants who are successfully hired for employment;
  23-20              (4)  a community work experience program that provides
  23-21  a participant job training and work experience through a temporary
  23-22  job in the public sector;
  23-23              (5)  a subsidized employment program that provides to a
  23-24  participant job training and work experience through a job in the
  23-25  private sector that pays the participant a subsidized salary; and
  23-26              (6)  a self-employment assistance program that provides
  23-27  to a participant entrepreneurial training, business counseling, and
   24-1  technical and financial assistance so that the participant can
   24-2  establish a business and become self-employed.
   24-3        (b)  The department shall develop the programs prescribed by
   24-4  this section in accordance with federal law as a part of the job
   24-5  opportunities and basic skills (JOBS) training program under Part
   24-6  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).
   24-7        (c)  In adopting rules governing a program prescribed by this
   24-8  section, the department shall:
   24-9              (1)  establish the criteria for determining which
  24-10  recipients who are eligible to participate in the JOBS training
  24-11  program may be required to participate in a particular program;
  24-12              (2)  ensure that a recipient who is incapable of
  24-13  participating in a particular program is not required to
  24-14  participate in that program; and
  24-15              (3)  provide technical assistance to local workforce
  24-16  development boards.
  24-17        (d)  A local workforce development board may implement in a
  24-18  workforce development area one or more programs prescribed by this
  24-19  section.
  24-20        (e)  The department shall submit a waiver application or a
  24-21  renewal waiver application that a federal agency may require before
  24-22  a local workforce development board can implement one or more of
  24-23  the programs prescribed by this section in a workforce development
  24-24  area.
  24-25        (f)  In this section, a "local workforce development board"
  24-26  means a local workforce development board created under Section
  24-27  4.01, Workforce and Economic Competitiveness Act (Article 5190.7a,
   25-1  Vernon's Texas Civil Statutes).
   25-2        SECTION 4.04.  DEMONSTRATION PROJECTS; FUND.  Article 4,
   25-3  Workforce and Economic Competitiveness Act (Article 5190.7a,
   25-4  Vernon's Texas Civil Statutes), is amended by adding Sections
   25-5  4.055-4.057 to read as follows:
   25-6        Sec. 4.055.  DEMONSTRATION PROJECTS.  (a)  In this section
   25-7  and Section 4.056:
   25-8              (1)  "Board" means a local workforce development board.
   25-9              (2)  "Workforce development agency" means the state
  25-10  agency charged with primary responsibility for the implementation
  25-11  and consolidation of labor, employment, and job training programs
  25-12  in this state.
  25-13        (b)  In addition to the functions performed under Section
  25-14  4.04 of this Act and the local plan required under Section 4.05 of
  25-15  this Act, each board may establish and operate localized programs
  25-16  to expand education, training, and employment in the workforce
  25-17  development area administered by the board.  The board may design
  25-18  creative programs that fit the unique characteristics and needs of
  25-19  its workforce development area.
  25-20        (c)  A board that designs a program under this section shall
  25-21  submit a written proposal for approval of the program to the
  25-22  workforce development agency.  The workforce development agency
  25-23  shall approve any program that clearly demonstrates the ability to:
  25-24              (1)  draw on and unite the resources of the local
  25-25  community; and
  25-26              (2)  determine and meet the needs of the local service
  25-27  populations, businesses, and industries.
   26-1        (d)  A board shall implement and administer a program
   26-2  approved by the workforce development agency under this section as
   26-3  a local demonstration project.  The board shall report to the
   26-4  workforce development agency on a quarterly basis regarding the
   26-5  administration of the project and the effectiveness of the project
   26-6  in serving the workforce development needs of the community.
   26-7        (e)  A board shall submit any proposed changes in the program
   26-8  to the workforce development agency in writing.  The workforce
   26-9  development agency must approve the proposed changes before the
  26-10  changes may be adopted and implemented by the board.
  26-11        Sec. 4.056.  CERTAIN PROGRAMS FOR AFDC RECIPIENTS.  (a)  In
  26-12  addition to the programs established under Section 4.055 of this
  26-13  Act, each local workforce development board shall adopt programs to
  26-14  enhance the ability of recipients of financial assistance and
  26-15  services under Chapter 31, Human Resources Code, who are eligible
  26-16  to participate in the JOBS training program to obtain and retain
  26-17  gainful employment.  On request of a board, the workforce
  26-18  development agency shall provide technical assistance to the board
  26-19  in adopting programs under this section.
  26-20        (b)  In adopting programs under this section, the board shall
  26-21  consider the programs established under Section 31.0126, Human
  26-22  Resources Code.  Within the parameters established by that section,
  26-23  the board may adapt a program to serve more effectively the needs
  26-24  of the recipients described by Subsection (a) who are residing in
  26-25  the workforce development area.
  26-26        (c)  The workforce development agency must approve a program
  26-27  adopted by the board under this section, including a program
   27-1  established under Section 31.0126, Human Resources Code, before the
   27-2  board can implement the program in the workforce development area.
   27-3        (d)  In this section, "JOBS training program" means the job
   27-4  opportunities and basic skills (JOBS) training program under Part
   27-5  F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).
   27-6        Sec. 4.057.  REVOLVING FUND ACCOUNT.  (a)  A special
   27-7  revolving fund account is established in the state treasury to be
   27-8  known as the local workforce development board demonstration
   27-9  project account.  The account may be used only for:
  27-10              (1)  loans for the initial implementation costs of a
  27-11  demonstration project approved under Section 4.055 of this Act; and
  27-12              (2)  small loans for new education, training, and
  27-13  employment programs created by a local workforce development board
  27-14  under a demonstration project.
  27-15        (b)  The account consists of:
  27-16              (1)  money the legislature appropriates to the account;
  27-17              (2)  donations made to the account;
  27-18              (3)  repayment of small loans made under the provisions
  27-19  of a demonstration project;
  27-20              (4)  revenue received from state and federal education,
  27-21  training, and job programs; and
  27-22              (5)  depository interest and investment income earned
  27-23  on amounts in the account.
  27-24        (c)  Money drawn from the revolving fund account for the
  27-25  operation of education, training, and job programs shall be paid
  27-26  back to the account as permanent revenues from state and federal
  27-27  education, training, and job programs become available.
   28-1        (d)  Sections 403.094 and 403.095, Government Code, do not
   28-2  apply to the account.
   28-3        SECTION 4.05.  TEEN-JOBS PILOT PROGRAM.  (a)  Using funds
   28-4  available from the job opportunities and basic skills training
   28-5  program (JOBS) under Part F, Subchapter IV, Social Security Act (42
   28-6  U.S.C.  Section 682), the Central Education Agency, in conjunction
   28-7  with the Texas Department of Human Services and the comptroller,
   28-8  shall allow not fewer than four school districts or areas within
   28-9  school districts to establish pilot programs designed to encourage
  28-10  teenage parents to stay in school and advance toward independence.
  28-11        (b)  Services in the program may include the parenting
  28-12  program services provided under Section 21.114, Education Code,
  28-13  child care, transportation, tutorial services, guidance and
  28-14  counseling services, career counseling, mentor programs, on-the-job
  28-15  training based on the unique needs of participants and the local
  28-16  labor market, and any other allowable relevant services.
  28-17        (c)  The agency shall report to the governor regarding the
  28-18  effectiveness of this program.  The agency shall notify members of
  28-19  the legislature and the standing committees of the senate and house
  28-20  of representatives having primary jurisdiction over the agency of
  28-21  the filing of the report.
  28-22        (d)  This section expires January 1, 1999.
  28-23        SECTION 4.06.  WORK HISTORY AND 100-HOUR RULE WAIVER.  Not
  28-24  later than December 1, 1995, the Texas Department of Human Services
  28-25  shall reapply for a federal waiver to eliminate the work history
  28-26  and 100-hour rules for two-parent families and to enable the
  28-27  department to fully implement Section 31.014, Human Resources Code.
   29-1                 ARTICLE 5.  CHILD SUPPORT ENFORCEMENT
   29-2        SECTION 5.01.  CONFORMING AMENDMENT.  Chapter 76, Human
   29-3  Resources Code, is amended by designating Sections 76.001-76.011 as
   29-4  Subchapter A, Chapter 76, Human Resources Code, and adding a
   29-5  subchapter heading to read as follows:
   29-6           SUBCHAPTER A.  TITLE IV-D CHILD SUPPORT SERVICES
   29-7        SECTION 5.02.  INTERVENTION ASSISTANCE FOR UNEMPLOYED
   29-8  NONCUSTODIAL PARENTS.  Subchapter A, Chapter 76, Human Resources
   29-9  Code, as designated by this Act, is amended by adding Section
  29-10  76.012 to read as follows:
  29-11        Sec. 76.012.  UNEMPLOYED NONCUSTODIAL PARENTS.  (a)  The
  29-12  Title IV-D agency shall refer to appropriate state and local
  29-13  entities that assist unemployed noncustodial parents in gaining
  29-14  employment any unemployed noncustodial parent who is in arrears in
  29-15  court-ordered child support payments to a child who:
  29-16              (1)  receives financial assistance under Chapter 31; or
  29-17              (2)  is otherwise eligible to receive financial
  29-18  assistance under Chapter 31 and for whom the Department of
  29-19  Protective and Regulatory Services is providing substitute care.
  29-20        (b)  A referral under Subsection (a) may include:
  29-21              (1)  skills training and job placement through the:
  29-22                    (A)  Texas Employment Commission;
  29-23                    (B)  Texas Job Training Partnership Act, Chapter
  29-24  301, Labor Code; or
  29-25                    (C)  agency responsible for the food stamp
  29-26  employment and training program (7 U.S.C. Section 2015(d));
  29-27              (2)  referrals to education and literacy classes; and
   30-1              (3)  counseling regarding:
   30-2                    (A)  substance abuse;
   30-3                    (B)  parenting skills;
   30-4                    (C)  life skills; and
   30-5                    (D)  mediation techniques.
   30-6        (c)  The Title IV-D agency may require an unemployed
   30-7  noncustodial parent to complete the training, classes, or
   30-8  counseling the parent is referred to under this section.  The
   30-9  agency shall suspend under Subchapter B the license of a parent who
  30-10  fails to comply with the requirements of this subsection.
  30-11        SECTION 5.03.  LICENSE SUSPENSION.  Subtitle D, Title 5,
  30-12  Family Code, as added by House Bill 655, Acts of the 74th
  30-13  Legislature, Regular Session, 1995, is amended by adding Chapter
  30-14  232 to read as follows:
  30-15            CHAPTER 232.  SUSPENSION OF LICENSE FOR FAILURE
  30-16                         TO PAY CHILD SUPPORT
  30-17        Sec. 232.001.  DEFINITIONS.  In this chapter:
  30-18              (1)  "License" means a license, certificate,
  30-19  registration, permit, or other authorization that:
  30-20                    (A)  is issued by a licensing authority;
  30-21                    (B)  is subject before expiration to suspension,
  30-22  revocation, forfeiture, or termination by the issuing licensing
  30-23  authority; and
  30-24                    (C)  is necessary for a person to:
  30-25                          (i)  practice or engage in a particular
  30-26  business, occupation, or profession;
  30-27                          (ii)  operate a motor vehicle; or
   31-1                          (iii)  engage in any other regulated
   31-2  activity, including hunting, fishing, or other recreational
   31-3  activity for which a license or permit is required.
   31-4              (2)  "Licensing authority" means a department,
   31-5  commission, board, office, or other agency of the state or of a
   31-6  political subdivision of the state that issues a license.
   31-7              (3)  "Order suspending license" means an order issued
   31-8  by the Title IV-D agency or a court directing a licensing authority
   31-9  to suspend a license.
  31-10        Sec. 232.002.  LICENSING AUTHORITIES SUBJECT TO SUBCHAPTER.
  31-11  The following state agencies are licensing authorities subject to
  31-12  this subchapter:
  31-13              (1)  Department of Agriculture;
  31-14              (2)  Texas Commission on Alcohol and Drug Abuse;
  31-15              (3)  Texas Alcoholic Beverage Commission;
  31-16              (4)  Texas Appraiser Licensing and Certification Board;
  31-17              (5)  Texas Board of Architectural Examiners;
  31-18              (6)  State Board of Barber Examiners;
  31-19              (7)  Texas Board of Chiropractic Examiners;
  31-20              (8)  Comptroller of Public Accounts;
  31-21              (9)  Texas Cosmetology Commission;
  31-22              (10)  Court Reporters Certification Board;
  31-23              (11)  State Board of Dental Examiners, if the 74th
  31-24  Legislature, at its regular session, enacts legislation that
  31-25  becomes law authorizing a state agency to regulate the practice of
  31-26  dentistry;
  31-27              (12)  Texas State Board of Examiners of Dietitians;
   32-1              (13)  Texas Funeral Service Commission;
   32-2              (14)  Texas Department of Health;
   32-3              (15)  Texas Board of Professional Land Surveying;
   32-4              (16)  Texas Department of Licensing and Regulation;
   32-5              (17)  Texas State Board of Examiners of Marriage and
   32-6  Family Therapists;
   32-7              (18)  Texas State Board of Medical Examiners;
   32-8              (19)  Midwifery Board;
   32-9              (20)  Texas Natural Resource Conservation Commission;
  32-10              (21)  Board of Nurse Examiners;
  32-11              (22)  Texas Board of Nursing Facility Administrators;
  32-12              (23)  Texas Board of Occupational Therapy Examiners;
  32-13              (24)  Texas Optometry Board;
  32-14              (25)  Parks and Wildlife Department;
  32-15              (26)  Texas State Board of Examiners of Perfusionists;
  32-16              (27)  Texas State Board of Pharmacy;
  32-17              (28)  Texas Board of Physical Therapy Examiners;
  32-18              (29)  Texas State Board of Plumbing Examiners;
  32-19              (30)  Texas State Board of Podiatry Examiners;
  32-20              (31)  Polygraph Examiners Board;
  32-21              (32)  Texas Board of Private Investigators and Private
  32-22  Security Agencies;
  32-23              (33)  Texas State Board of Examiners of Professional
  32-24  Counselors;
  32-25              (34)  State Board of Registration for Professional
  32-26  Engineers;
  32-27              (35)  Department of Protective and Regulatory Services;
   33-1              (36)  Texas State Board of Examiners of Psychologists;
   33-2              (37)  Texas State Board of Public Accountancy;
   33-3              (38)  Department of Public Safety of the State of
   33-4  Texas;
   33-5              (39)  Public Utility Commission of Texas;
   33-6              (40)  Railroad Commission of Texas;
   33-7              (41)  Texas Real Estate Commission;
   33-8              (42)  State Bar of Texas;
   33-9              (43)  Texas State Board of Social Worker Examiners;
  33-10              (44)  State Board of Examiners for Speech-Language
  33-11  Pathology and Audiology;
  33-12              (45)  Texas Structural Pest Control Board;
  33-13              (46)  Board of Tax Professional Examiners;
  33-14              (47)  Secretary of State;
  33-15              (48)  Supreme Court of Texas;
  33-16              (49)  Texas Transportation Commission;
  33-17              (50)  State Board of Veterinary Medical Examiners;
  33-18              (51)  Board of Vocational Nurse Examiners;
  33-19              (52)  Texas Ethics Commission;
  33-20              (53)  Advisory Board of Athletic Trainers;
  33-21              (54)  State Committee of Examiners in the Fitting and
  33-22  Dispensing of Hearing Instruments;
  33-23              (55)  Texas Board of Licensure for Professional Medical
  33-24  Physicists; and
  33-25              (56)  Texas Department of Insurance.
  33-26        Sec. 232.003.  SUSPENSION OF LICENSE.   A court or the Title
  33-27  IV-D agency shall issue an order suspending license as provided by
   34-1  this chapter if an obligor:
   34-2              (1)  has an arrearage equal to or greater than the
   34-3  total support due for 90 days under a support order;
   34-4              (2)  has been provided an opportunity to make payments
   34-5  toward the child support arrearage under an agreed or court-ordered
   34-6  repayment schedule; and
   34-7              (3)  has failed to comply with the repayment schedule.
   34-8        Sec. 232.004.  PETITION FOR SUSPENSION OF LICENSE.  (a)  A
   34-9  child support agency or obligee may file a petition to suspend a
  34-10  license.
  34-11        (b)  In a Title IV-D case, the petition shall be filed with
  34-12  the Title IV-D agency.
  34-13        (c)  In a case other than a Title IV-D case, the petition
  34-14  shall be filed in the court of continuing jurisdiction or the court
  34-15  in which a child support order has been registered under Chapter
  34-16  159.
  34-17        (d)  A proceeding in a case filed with the Title IV-D agency
  34-18  under this chapter is governed by the contested case provisions in
  34-19  Chapter 2001, Government Code, except that Section 2001.054 does
  34-20  not apply to the proceeding.   The director of the Title IV-D
  34-21  agency is responsible for rendering a final decision in the
  34-22  contested case proceeding.
  34-23        Sec. 232.005.  CONTENTS OF PETITION.  (a)  A petition under
  34-24  this chapter must state that license suspension is required under
  34-25  Section 232.003 and allege:
  34-26              (1)  the name and, if known, social security number of
  34-27  the obligor;
   35-1              (2)  the type of license the obligor is believed to
   35-2  hold and the name of the licensing authority; and
   35-3              (3)  the amount owed under the child support order, the
   35-4  amount of support paid, and the amount of arrearages.
   35-5        (b)  A petition under this chapter may include as an
   35-6  attachment a copy of the record of child support payments
   35-7  maintained by the Title IV-D registry or local registry.
   35-8        Sec. 232.006.  NOTICE.  (a)  On the filing of a petition
   35-9  under Section 232.004, the court or Title IV-D agency shall issue
  35-10  to the obligor:
  35-11              (1)  notice of the obligor's right to a hearing before
  35-12  the court or agency;
  35-13              (2)  notice of the deadline for requesting a hearing;
  35-14  and
  35-15              (3)  a hearing request form if the proceeding is in a
  35-16  Title IV-D case.
  35-17        (b)  Notice under this section may be served as in civil
  35-18  cases generally.
  35-19        (c)  The notice must state that an order suspending license
  35-20  shall be rendered on the 60th day after the date of service of the
  35-21  notice unless by that date:
  35-22              (1)  the court or Title IV-D agency receives proof that
  35-23  all arrearages and the current month's child support obligation
  35-24  have been paid;
  35-25              (2)  the child support agency or obligee files a
  35-26  certification that the obligor is in compliance with a reasonable
  35-27  repayment schedule; or
   36-1              (3)  the obligor appears at a hearing before the court
   36-2  or Title IV-D agency and shows that the request for suspension
   36-3  should be denied or stayed.
   36-4        Sec. 232.007.  HEARING ON PETITION TO SUSPEND LICENSE.
   36-5  (a)  A request for a hearing and motion to stay suspension must be
   36-6  filed with the court or Title IV-D agency by the obligor not later
   36-7  than the 20th day after the date of service of the notice under
   36-8  Section 232.006.
   36-9        (b)  If a request for a hearing is filed, the court or Title
  36-10  IV-D agency shall:
  36-11              (1)  promptly schedule a hearing;
  36-12              (2)  notify each party of the date, time, and location
  36-13  of the hearing; and
  36-14              (3)  stay suspension pending the hearing.
  36-15        (c)  A record of child support payments made by the Title
  36-16  IV-D agency or a local registry is evidence of whether the payments
  36-17  were made.  A copy of the record appearing regular on its face
  36-18  shall be admitted as evidence at a hearing under this chapter,
  36-19  including a hearing on a motion to revoke a stay.  Either party may
  36-20  offer controverting evidence.
  36-21        Sec. 232.008.  ORDER SUSPENDING LICENSE.  (a)  On making the
  36-22  findings required by Section 232.003, the court or Title IV-D
  36-23  agency shall render an order suspending the license unless the
  36-24  obligor proves that all arrearages and the current month's support
  36-25  have been paid.
  36-26        (b)  The court or Title IV-D agency may stay an order
  36-27  suspending a license conditioned on the obligor's compliance with a
   37-1  reasonable repayment schedule that is incorporated in the order.
   37-2  An order suspending license with a stay of suspension may not be
   37-3  served on the licensing authority unless the stay is revoked as
   37-4  provided in this chapter.
   37-5        (c)  A final order suspending license rendered by a court or
   37-6  the Title IV-D agency shall be forwarded to the appropriate
   37-7  licensing authority.
   37-8        (d)  If the court or Title IV-D agency renders an order
   37-9  suspending license, the obligor may also be ordered not to engage
  37-10  in the licensed activity.
  37-11        (e)  If the court or Title IV-D agency finds that the
  37-12  petition for suspension should be denied, the petition shall be
  37-13  dismissed without prejudice, and an order suspending license may
  37-14  not be rendered.
  37-15        Sec. 232.009.  DEFAULT ORDER.  The court or Title IV-D agency
  37-16  shall consider the allegations of the petition for suspension to be
  37-17  admitted and shall render an order suspending license if the
  37-18  obligor fails to:
  37-19              (1)  respond to a notice issued under Section 232.006;
  37-20              (2)  request a hearing; or
  37-21              (3)  appear at a hearing.
  37-22        Sec. 232.010.  REVIEW OF FINAL ADMINISTRATIVE ORDER.   An
  37-23  order issued by a Title IV-D agency under this chapter is a final
  37-24  agency decision and is subject to review under the substantial
  37-25  evidence rule as provided by Chapter 2001, Government Code.
  37-26        Sec. 232.011.  ACTION BY LICENSING AUTHORITY.  (a)  On
  37-27  receipt of a final order suspending license, the licensing
   38-1  authority shall immediately determine if the authority has issued a
   38-2  license to the obligor named on the order and, if a license has
   38-3  been issued:
   38-4              (1)  record the suspension of the license in the
   38-5  licensing authority's records;
   38-6              (2)  report the suspension as appropriate; and 
   38-7              (3)  demand surrender of the suspended license if
   38-8  required by law for other cases in which a license is suspended.
   38-9        (b)  A licensing authority shall implement the terms of a
  38-10  final order suspending license without additional review or
  38-11  hearing.  The authority may provide notice as appropriate to the
  38-12  license holder or to others concerned with the license.
  38-13        (c)  A licensing authority may not modify, remand, reverse,
  38-14  vacate, or stay an order suspending license issued under this
  38-15  chapter and may not review, vacate, or reconsider the terms of a
  38-16  final order suspending license.
  38-17        (d)  An obligor who is the subject of a final order
  38-18  suspending license is not entitled to a refund for any fee or
  38-19  deposit paid to the licensing authority.
  38-20        (e)  An obligor who continues to engage in the business,
  38-21  occupation, profession, or other licensed activity after the
  38-22  implementation of the order suspending license by the licensing
  38-23  authority is liable for the same civil and criminal penalties
  38-24  provided for engaging in the licensed activity without a license or
  38-25  while a license is suspended as any other license holder of that
  38-26  licensing authority.
  38-27        (f)  A licensing authority is exempt from liability to a
   39-1  license holder for any act authorized under this chapter performed
   39-2  by the authority.
   39-3        (g)  Except as provided by this chapter, an order suspending
   39-4  license or dismissing a petition for the suspension of a license
   39-5  does not affect the power of a licensing authority to grant, deny,
   39-6  suspend, revoke, terminate, or renew a license.
   39-7        (h)  The denial or suspension of a driver's license under
   39-8  this chapter is governed by this chapter and not by the general
   39-9  licensing provisions of Chapter 173, Acts of the 47th Legislature,
  39-10  Regular Session, 1941 (Article 6687b, Vernon's Texas Civil
  39-11  Statutes).
  39-12        Sec. 232.012.  MOTION TO REVOKE STAY.  (a)  The obligee,
  39-13  support enforcement agency, court, or Title IV-D agency may file a
  39-14  motion to revoke the stay of an order suspending license if the
  39-15  obligor does not comply with the terms of a reasonable repayment
  39-16  plan entered into by the obligor.
  39-17        (b)  Notice to the obligor of a motion to revoke stay under
  39-18  this section may be given by personal service or by mail to the
  39-19  address provided by the obligor, if any, in the order suspending
  39-20  license.  The notice must include a notice of hearing.  The notice
  39-21  must be provided to the obligor not less than 10 days before the
  39-22  date of the hearing.
  39-23        (c)  A motion to revoke stay must allege the manner in which
  39-24  the obligor failed to comply with the repayment plan.
  39-25        (d)  If the court or Title IV-D agency finds that the obligor
  39-26  is not in compliance with the terms of the repayment plan, the
  39-27  court or agency shall revoke the stay of the order suspending
   40-1  license and render a final order suspending license.
   40-2        Sec. 232.013.  VACATING OR STAYING ORDER SUSPENDING LICENSE.
   40-3  (a)  The court or Title IV-D agency may render an order vacating or
   40-4  staying an order suspending license if the obligor has paid all
   40-5  delinquent child support or has established a satisfactory payment
   40-6  record.
   40-7        (b)  The court or Title IV-D agency shall promptly deliver an
   40-8  order vacating or staying an order suspending license to the
   40-9  appropriate licensing authority.
  40-10        (c)  On receipt of an order vacating or staying an order
  40-11  suspending license, the licensing authority shall promptly issue
  40-12  the affected license to the obligor if the obligor is otherwise
  40-13  qualified for the license.
  40-14        (d)  An order rendered under this section does not affect the
  40-15  right of the child support agency or obligee to any other remedy
  40-16  provided by law, including the right to seek relief under this
  40-17  chapter.  An order rendered under this section does not affect the
  40-18  power of a licensing authority to grant, deny, suspend, revoke,
  40-19  terminate, or renew a license as otherwise provided by law.
  40-20        Sec. 232.014.  FEE BY LICENSING AUTHORITY.  A licensing
  40-21  authority may charge a fee to an obligor who is the subject of an
  40-22  order suspending license in an amount sufficient to recover the
  40-23  administrative costs incurred by the authority under this chapter.
  40-24        Sec. 232.015.  COOPERATION BETWEEN LICENSING AUTHORITIES AND
  40-25  TITLE IV-D AGENCY.  (a)  The Title IV-D agency may request from
  40-26  each licensing authority the name, address, social security number,
  40-27  license renewal date, and other identifying information for each
   41-1  individual who holds, applies for, or renews a license issued by
   41-2  the authority.
   41-3        (b)  A licensing authority shall provide the requested
   41-4  information in the manner agreed to by the Title IV-D agency and
   41-5  the licensing authority.
   41-6        (c)  The Title IV-D agency may enter into a cooperative
   41-7  agreement with a licensing authority to administer this subchapter
   41-8  in a cost-effective manner.
   41-9        (d)  The Title IV-D agency may adopt a reasonable
  41-10  implementation schedule for the requirements of this section.
  41-11        (e)  The Title IV-D agency, the comptroller and the Texas
  41-12  Alcoholic Beverage Commission shall by rule specify additional
  41-13  prerequisites for the suspension of licenses relating to state
  41-14  taxes collected under Title 2 of the Tax Code.  Such joint rules
  41-15  shall be promulgated not later than March 1, 1996.
  41-16        Sec. 232.016.  RULES, FORMS, AND PROCEDURES.  The Title IV-D
  41-17  agency by rule shall prescribe forms and procedures for the
  41-18  implementation of this chapter.
  41-19        SECTION 5.04.  STATEMENT REGARDING PAYMENT OF CHILD SUPPORT.
  41-20  Subchapter A, Chapter 1, Family Code, is amended by adding Section
  41-21  1.045 to read as follows:
  41-22        Sec. 1.045.  STATEMENT REGARDING PAYMENT OF CHILD SUPPORT.
  41-23  (a)  An applicant for a marriage license shall submit to the county
  41-24  clerk a statement witnessed by two credible persons and verified
  41-25  before a person authorized to take oaths stating that as of the
  41-26  date the application for a marriage license is filed the applicant
  41-27  does not owe delinquent court-ordered child support.
   42-1        (b)  A child support payment is considered delinquent for
   42-2  purposes of Subsection (a) if the child support obligee under a
   42-3  child support order that applies to the applicant is entitled to
   42-4  seek enforcement of an arrearage under Subchapter B, Chapter 14.
   42-5        (c)  A person commits an offense if, with intent to deceive
   42-6  and with knowledge of the statement's meaning, the person submits a
   42-7  false statement under this section.
   42-8        (d)  An offense under this section is a state jail felony.
   42-9        SECTION 5.05.  ISSUANCE OF MARRIAGE LICENSE.  Section
  42-10  1.07(a), Family Code, is amended to read as follows:
  42-11        (a)  Except as provided by Subsection (b) of this section,
  42-12  the county clerk may not issue a license to the applicants if:
  42-13              (1)  either applicant fails to provide information as
  42-14  required by Sections 1.02, 1.045, and 1.05 of the code;
  42-15              (2)  either applicant fails to submit proof of age and
  42-16  identity;
  42-17              (3)  either applicant is under 14 years of age and has
  42-18  not received a court order under Section 1.53 of this code;
  42-19              (4)  either applicant is 14 years of age or older but
  42-20  under 18 years of age and has received neither parental consent nor
  42-21  a court order under Section 1.53 of this code;
  42-22              (5)  either applicant checks "false" in response to a
  42-23  statement in the application, except as provided in Subsection (b)
  42-24  of this section, or fails to make a required declaration in an
  42-25  affidavit required of an absent applicant; or
  42-26              (6)  either applicant indicates that he or she has been
  42-27  divorced by a decree of a court of this state within the last 30
   43-1  days, unless:
   43-2                    (A)  the applicants were divorced from each
   43-3  other; or
   43-4                    (B)  the prohibition against remarriage was
   43-5  waived under Section 3.66 of this code.
   43-6              ARTICLE 6.  FINANCIAL ASSISTANCE RECIPIENTS
   43-7                          AND OTHERS WHO ARE
   43-8                     ELIGIBLE FOR FEDERAL PROGRAMS
   43-9        SECTION 6.01.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.
  43-10  (a)  Article 4413(502), Revised Statutes, is amended by adding
  43-11  Section 22 to read as follows:
  43-12        Sec. 22.  AFDC RECIPIENTS ELIGIBLE FOR FEDERAL PROGRAMS.  (a)
  43-13  The commission shall assist recipients of financial assistance
  43-14  under Chapter 31, Human Resources Code, who are eligible for
  43-15  assistance under federal programs to apply for benefits under those
  43-16  federal programs.  The commission may delegate this responsibility
  43-17  to one of the health and human services agencies listed under
  43-18  Section 19, contract with a unit of local government, or use any
  43-19  other cost-effective method to assist financial assistance
  43-20  recipients who are eligible for federal programs.
  43-21        (b)  The commission shall organize a planning group involving
  43-22  the Texas Department of Human Services, the Central Education
  43-23  Agency, and the Texas Rehabilitation Commission to:
  43-24              (1)  improve workload coordination between those
  43-25  agencies as necessary to administer this section; and
  43-26              (2)  provide information and help train employees to
  43-27  correctly screen applicants under this section as requested by the
   44-1  commission.
   44-2        (b)  Not later than January 15, 1997, the planning group
   44-3  required by Section 22, Article 4413(502), Revised Statutes, as
   44-4  added by this section, shall submit to the governor a report on the
   44-5  progress the state has made in transferring recipients of state
   44-6  financial assistance to federal programs.  The commission shall
   44-7  notify members of the legislature and the standing committees of
   44-8  the senate and house of representatives having primary jurisdiction
   44-9  over the commission of the filing of the report.
  44-10        SECTION 6.02.  EMPLOYMENT OPPORTUNITIES FOR PERSONS WITH
  44-11  DISABILITIES.  (a)  Chapter 121, Human Resources Code, is amended
  44-12  by adding Sections 121.0014 and 121.0015 to read as follows:
  44-13        Sec. 121.0014.  VISION STATEMENT.  (a)  The Health and Human
  44-14  Services Commission, each health and human services agency, and
  44-15  each state agency that administers a workforce development program
  44-16  shall adopt the following statement of vision:
  44-17        The State of Texas shall ensure that all Texans with
  44-18        disabilities have the opportunity and support necessary
  44-19        to work in individualized, competitive employment in
  44-20        the community and to have choices about their work and
  44-21        careers.
  44-22        (b)  In this section, "health and human services agency"
  44-23  means an agency listed by Section 19, Article 4413(502), Revised
  44-24  Statutes.
  44-25        Sec. 121.0015.  INTERAGENCY WORK GROUP.  (a)  An interagency
  44-26  work group is created to implement the action plan adopted at the
  44-27  1994 Supported Employment Summit.
   45-1        (b)  The work group is composed of a representative of the:
   45-2              (1)  Central Education Agency, appointed by the
   45-3  commissioner of education;
   45-4              (2)  Texas Commission for the Blind, appointed by the
   45-5  commissioner of that agency;
   45-6              (3)  Texas Department of Mental Health and Mental
   45-7  Retardation, appointed by the commissioner of mental health and
   45-8  mental retardation;
   45-9              (4)  Texas Rehabilitation Commission, appointed by the
  45-10  commissioner of that agency; and
  45-11              (5)  Texas Commission for the Deaf and Hearing
  45-12  Impaired, appointed by the executive director of that agency.
  45-13        (c)  A member of the work group serves at the will of the
  45-14  appointing agency.
  45-15        (d)  The work group shall elect a presiding officer and any
  45-16  other necessary officers.
  45-17        (e)  The work group shall meet at the call of the presiding
  45-18  officer.
  45-19        (f)  The appointing agency is responsible for the expenses of
  45-20  a member's service on the work group.  A member of the work group
  45-21  receives no additional compensation for serving on the work group.
  45-22        (g)  The comptroller shall monitor the work group and the
  45-23  implementation of the action plan.
  45-24        (b)  Not later than November 15, 1996, the comptroller shall
  45-25  submit to the governor and the legislature a report describing the
  45-26  progress made toward implementing the action plan adopted at the
  45-27  1994 Supported Employment Summit. The comptroller shall notify
   46-1  members of the 74th Legislature and the standing committees of the
   46-2  senate and house of representatives having primary jurisdiction
   46-3  over the comptroller of the filing of the report.
   46-4        SECTION 6.03.  WORK INCENTIVES.  Subchapter B, Chapter 111,
   46-5  Human Resources Code, is amended by adding Section 111.0205 to read
   46-6  as follows:
   46-7        Sec. 111.0205.  WORK INCENTIVES AND SUPPLEMENTAL SECURITY
   46-8  INCOME (SSI).  The commission shall employ a person at the
   46-9  commission's central office to:
  46-10              (1)  train counselors to understand and use work
  46-11  incentives; and
  46-12              (2)  review cases to ensure that commission clients are
  46-13  informed of the availability of and assisted in obtaining work
  46-14  incentives and Supplemental Security Income (SSI) (42 U.S.C.
  46-15  Section 1381 et seq.).
  46-16        SECTION 6.04.  EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH
  46-17  MENTAL ILLNESS AND MENTAL RETARDATION.  Section 533.008, Health and
  46-18  Safety Code, is amended by amending the heading and Subsection (a)
  46-19  and adding Subsection (e) to read as follows:
  46-20        Sec. 533.008.  EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH
  46-21  MENTAL ILLNESS AND MENTAL RETARDATION <PATIENTS AND CLIENTS>.  (a)
  46-22  Each department facility and community center shall annually assess
  46-23  the feasibility of converting entry level support positions into
  46-24  employment opportunities for individuals <patients> with mental
  46-25  illness and <clients with> mental retardation in the facility's or
  46-26  center's service area.
  46-27        (e)  Each department facility and community center shall
   47-1  ensure that designated staff are trained to:
   47-2              (1)  assist clients through the Social Security
   47-3  Administration disability determination process;
   47-4              (2)  provide clients and their families information
   47-5  related to the Social Security Administration Work Incentive
   47-6  Provisions; and
   47-7              (3)  assist clients in accessing and utilizing the
   47-8  Social Security Administration Work Incentive Provisions to finance
   47-9  training, services, and supports needed to obtain career goals.
  47-10        SECTION 6.05.  DONATED PURCHASE AGREEMENTS.  Chapter 22,
  47-11  Human Resources Code, is amended by adding Section 22.030 to read
  47-12  as follows:
  47-13        Sec. 22.030.  AGREEMENTS FOR PURCHASE OF SERVICES FOR
  47-14  CHILDREN.  (a)  To ensure the maximum use of available federal
  47-15  matching funds for child care services and other support services
  47-16  under Section 31.010, the Department of Human Services shall enter
  47-17  into agreements with the appropriate local community organizations
  47-18  to receive donations to be used for the purchase of services for
  47-19  which matching federal funds are available.
  47-20        (b)  The Department of Human Services shall cooperate with
  47-21  each local community organization to develop guidelines for the use
  47-22  of that community's donation to provide the services described in
  47-23  Subsection (a) of this section.
  47-24        SECTION 6.06.  COMPETITIVE EMPLOYMENT.  (a)  Section
  47-25  21.510(e), Education Code, is amended to read as follows:
  47-26        (e)  Each school district shall develop and annually review
  47-27  an individual transition plan (ITP) for each student enrolled in a
   48-1  special education program who is at least 16 years of age.  The ITP
   48-2  shall include a goal of competitive employment.  The ITP shall be
   48-3  developed in a separate document from the individualized education
   48-4  program (IEP) and shall not be considered a part of the IEP.  The
   48-5  school district shall coordinate development of the ITP with any
   48-6  participating agency as provided in the memorandum of understanding
   48-7  in order to provide continuity and coordination of services among
   48-8  the various agencies and between the ITP and IEP.  The district
   48-9  shall request the participation in the development of the ITP of
  48-10  any participating agency recommended by school personnel or
  48-11  requested by the student or the student's parent.  The district
  48-12  shall invite the student and the student's parents or guardians to
  48-13  participate in the development of the ITP.  Only those components
  48-14  of the ITP which are the responsibility of the district shall be
  48-15  incorporated into the student's IEP.  Only the failure to implement
  48-16  those components of a student's ITP which are included in the IEP
  48-17  and are the responsibility of the school district shall be subject
  48-18  to the due process procedures of the Education of the Handicapped
  48-19  Act, Public Law 94-142 (20 U.S.C.  Section 1400 et seq.) or to
  48-20  Central Education Agency complaint procedures.  The failure of the
  48-21  district to develop and annually review an ITP for a student shall
  48-22  be subject only to the Central Education Agency complaint
  48-23  procedures and not to the due process procedures of the Education
  48-24  of the Handicapped Act, Public Law 94-142 (20 U.S.C. Section 1400
  48-25  et seq.).  A monitoring visit under Section 21.509 of this code
  48-26  shall include a review of the transition planning requirements
  48-27  under this section.  A school district is not liable for the
   49-1  failure of another agency to implement those components of the ITP
   49-2  that are designated as the responsibility of that agency under the
   49-3  memorandum of understanding.
   49-4        (b)  Section 21.510(e), Education Code, as amended by this
   49-5  section, applies to an individual transition plan developed for
   49-6  each school year beginning with the 1995-1996 school year.
   49-7        (c)  The Central Education Agency shall study the possible
   49-8  effects of amending Section 21.510, Education Code, to require the
   49-9  development of an individual transition plan for each child who is
  49-10  at least 14 years of age.  Not later than November 15, 1996, the
  49-11  agency shall submit to the governor and the legislature a report on
  49-12  the effects of changing the age requirement.
  49-13        SECTION 6.07.  FEDERAL FUNDING:  MENTAL HEALTH SERVICES.
  49-14  Subchapter B, Chapter 533, Health and Safety Code, is amended by
  49-15  adding Section 533.046 to read as follows:
  49-16        Sec. 533.046.  FEDERAL FUNDING FOR MENTAL HEALTH SERVICES FOR
  49-17  CHILDREN AND FAMILIES.  (a)  The department shall enter into an
  49-18  interagency agreement with the Texas Department of Human Services
  49-19  to:
  49-20              (1)  amend the eligibility requirements of the state's
  49-21  emergency assistance plan under Title IV-A, Social Security Act (42
  49-22  U.S.C. Section 601 et seq.), to include mental health emergencies;
  49-23  and
  49-24              (2)  prescribe the procedures the agencies will use to
  49-25  delegate to the department and to local mental health and mental
  49-26  retardation authorities the administration of mental health
  49-27  emergency assistance.
   50-1        (b)  The interagency agreement must provide that:
   50-2              (1)  the department certify to the Texas Department of
   50-3  Human Services the nonfederal expenditures for which the state will
   50-4  claim federal matching funds; and
   50-5              (2)  the Texas Department of Human Services retain
   50-6  responsibility for making final eligibility decisions.
   50-7        (c)  The department shall allocate to local mental health and
   50-8  mental retardation authorities 66 percent of the federal funds
   50-9  received under this section.
  50-10        SECTION 6.08.  FEDERAL FUNDING:  CHEMICAL DEPENDENCY
  50-11  SERVICES.  (a)  Article 4413(502), Revised Statutes, is amended by
  50-12  adding Section 10A to read as follows:
  50-13        Sec. 10A.  FEDERAL FUNDING FOR CHEMICAL DEPENDENCY SERVICES.
  50-14  The commission shall coordinate with the Texas Commission on
  50-15  Alcohol and Drug Abuse and the Texas Department of Human Services
  50-16  to amend the eligibility requirements of the state's emergency
  50-17  assistance plan under Title IV-A, Social Security Act (42 U.S.C.
  50-18  Section 601 et seq.), to include either a child or a significant
  50-19  adult in a child's family who needs chemical dependency treatment.
  50-20        (b)  The Texas Department on Alcohol and Drug Abuse shall
  50-21  continue to study the feasibility of amending the state's Medicaid
  50-22  plan to include chemical dependency treatment as an allowable
  50-23  service.
  50-24        SECTION 6.09.  FEDERAL FUNDS; SUBSTITUTE CARE.  (a)  Article
  50-25  4413(503), Revised Statutes, is amended by adding Section 12A to
  50-26  read as follows:
  50-27        Sec. 12A.  FEDERAL FUNDING FOR CERTAIN CHILDREN.  (a)  For
   51-1  purposes of Medicaid eligibility only, the department shall
   51-2  classify as a "child in substitute care" each child who is in the
   51-3  conservatorship of the state and placed in the home of a relative.
   51-4  A child classified as a "child in substitute care" under this
   51-5  subsection is not automatically eligible to receive foster care
   51-6  payments because of that classification.
   51-7        (b)  The department shall ensure that each time study used to
   51-8  allocate costs identifies all costs incurred on behalf of a child
   51-9  if the child's case plan clearly indicates that substitute care is
  51-10  the planned arrangement for that child.
  51-11        (c)  The department shall claim federal financial
  51-12  participation under Title IV-E, Social Security Act (42 U.S.C.
  51-13  Section 670 et seq.), for all nonrecurring adoption expenses at the
  51-14  highest rate authorized by federal law.  The department shall
  51-15  include all charges from state attorneys and state courts and any
  51-16  applicable overhead.  The department may claim the expenses as
  51-17  either administrative or training expenses, depending on which
  51-18  classification results in a higher federal match.
  51-19        (b)  The Department of Protective and Regulatory Services
  51-20  shall file an adjustment to its previous quarterly claims under
  51-21  Title IV-E, Social Security Act (42 U.S.C. Section 670 et seq.), to
  51-22  claim retroactive federal financial participation for the
  51-23  incremental difference for each quarter in which nonrecurring
  51-24  adoption expenses have been identified as a legitimate expense.
  51-25        (c)  The department shall request a waiver from the federal
  51-26  two-year limitation on the period in which the state can file
  51-27  certain claims in accordance with Section 1132(b), Social Security
   52-1  Act (42 U.S.C. Section 1320b-2(b)).  If the waiver is denied, the
   52-2  department shall exhaust all administrative remedies and, if
   52-3  necessary, seek judicial review to obtain a court order reducing
   52-4  the claim to judgment and mandating retroactive payment.
   52-5        SECTION 6.10.  FEDERAL TAX CREDIT.  Subchapter B, Chapter
   52-6  403, Government Code, is amended by adding Section 403.024 to read
   52-7  as follows:
   52-8        Sec. 403.024.  FEDERAL EARNED INCOME TAX CREDIT.  (a)  The
   52-9  comptroller's office is the lead state agency in promoting
  52-10  awareness of the federal earned income tax credit program for
  52-11  working families.
  52-12        (b)  The comptroller shall recruit other state agencies and
  52-13  the governor's office to participate in a coordinated campaign to
  52-14  increase awareness of the federal tax program.
  52-15        (c)  State agencies that otherwise distribute information to
  52-16  the public may use existing resources to distribute information to
  52-17  persons likely to qualify for federal earned income tax credits and
  52-18  shall cooperate with the comptroller in information distribution
  52-19  efforts.
  52-20        SECTION 6.11.  FEDERAL FUNDING; PROGRAMS TO BENEFIT VICTIMS
  52-21  OF FAMILY VIOLENCE.  Chapter 51, Human Resources Code, is amended
  52-22  by adding Section 51.0051 to read as follows:
  52-23        Sec. 51.0051.  MAXIMIZING FEDERAL FUNDING FOR PROGRAMS TO
  52-24  BENEFIT VICTIMS OF FAMILY VIOLENCE.  To maximize the state's
  52-25  receipt of federal matching funds for emergency assistance under
  52-26  Part A, Title IV, Social Security Act (42 U.S.C. Section 601 et
  52-27  seq.), the department shall:
   53-1              (1)  ensure that a contract made under Section 51.003
   53-2  includes provisions necessary to maximize federal funding for
   53-3  services for victims of family violence;
   53-4              (2)  file amendments to the state's plan for aid and
   53-5  services to needy families with children under Part A, Title IV,
   53-6  Social Security Act (42 U.S.C. Section 601 et seq.), that are
   53-7  necessary to maximize federal funding; and
   53-8              (3)  establish by rule any reporting procedures that
   53-9  federal law requires as a condition of receiving federal matching
  53-10  funds.
  53-11                 ARTICLE 7.  EDUCATION; PILOT PROGRAMS
  53-12        SECTION 7.01.  ADULT LEARNING LABS FOR AFDC CLIENTS.
  53-13  Subchapter A, Chapter 11, Education Code, is amended by adding
  53-14  Section 11.2093 to read as follows:
  53-15        Sec. 11.2093.  EDUCATE TEXAS PROGRAM.  (a)  The Educate Texas
  53-16  Program is created to provide adult education services to clients
  53-17  of Aid to Families with Dependent Children who are referred to the
  53-18  program under Section 31.0124, Human Resources Code.
  53-19        (b)  The Central Education Agency, the Texas Higher Education
  53-20  Coordinating Board, and the state agency charged with primary
  53-21  responsibility for job training, employment, and workforce
  53-22  development shall jointly develop a system of adult education
  53-23  learning laboratories in public schools, community colleges, and
  53-24  other publicly owned facilities under this program to provide the
  53-25  following emergency services, as needed, to a person eligible to
  53-26  receive Aid to Families with Dependent Children:
  53-27              (1)  development of literacy in English and proficiency
   54-1  in oral and written language skills;
   54-2              (2)  preparation for a high school equivalency
   54-3  examination;
   54-4              (3)  training in parenting skills;
   54-5              (4)  training in principles of family dynamics and
   54-6  family responsibility;
   54-7              (5)  family counseling and case management;
   54-8              (6)  employment readiness training in such areas as
   54-9  work ethics and interview skills; and
  54-10              (7)  on-site child-care services as necessary to allow
  54-11  a person to participate in the training and education services
  54-12  under this subsection.
  54-13        SECTION 7.02.  ELIGIBILITY FOR ADULT LEARNING LABS.
  54-14  Subchapter A, Chapter 31, Human Resources Code, is amended by
  54-15  adding Section 31.0124 to read as follows:
  54-16        Sec. 31.0124.  REFERRAL TO EDUCATIONAL PROGRAMS.  The
  54-17  department shall determine whether a person who registers to
  54-18  participate in the job opportunities and basic skills training
  54-19  program needs and is eligible for adult education services provided
  54-20  under Section 11.2093, Education Code.  If the person is eligible
  54-21  for the adult education services, the department shall determine
  54-22  the person's needs and goals and refer the person to the
  54-23  appropriate adult education service provided under Section 11.2093,
  54-24  Education Code.
  54-25        SECTION 7.03.  ADULT LITERACY AND LEARNING PROGRAMS.  Chapter
  54-26  88, Education Code, is amended by adding Subchapter G to read as
  54-27  follows:
   55-1                    SUBCHAPTER G.  TEXAS CENTER FOR
   55-2                      ADULT LITERACY AND LEARNING
   55-3        Sec. 88.541.  DUTIES OF TEXAS CENTER FOR ADULT LITERACY AND
   55-4  LEARNING.  (a) The Texas Center for Adult Literacy and Learning
   55-5  shall evaluate instructional videotapes or similar recorded
   55-6  materials generally available for use in providing adult literacy
   55-7  instruction and from time to time shall publish a guide describing
   55-8  and evaluating those videotapes and materials. The center shall
   55-9  encourage cable companies and other appropriate entities to use the
  55-10  guide in selecting materials to use in broadcasting and may take
  55-11  other action to promote the broadcast or dissemination of workbooks
  55-12  and other materials the center considers effective in teaching
  55-13  adult literacy.
  55-14        (b)  The center shall develop voluntary standards for the
  55-15  curriculum and workbooks and other materials used in adult literacy
  55-16  programs, including programs for teaching English as a second
  55-17  language.  To develop the standards, the center shall organize an
  55-18  advisory group and shall encourage the participation of major
  55-19  providers of adult literacy programs in this state, including
  55-20  private nonprofit organizations, institutions of education, and
  55-21  correctional facilities.  The Texas Department of Criminal Justice
  55-22  shall designate an employee of the department to participate in the
  55-23  initial development of the standards.
  55-24        (c)  In connection with the standards developed under
  55-25  Subsection (b), the center shall develop workbooks and other
  55-26  materials to be used by teachers and students in adult literacy
  55-27  programs to track the progress of the student and to allow the
   56-1  student to understand and maintain a record of the student's
   56-2  progress and proficiency.
   56-3        (d)  The center shall develop and update as necessary
   56-4  informational brochures, promotional posters, workbooks, or similar
   56-5  materials suitable for distribution to state employees or the
   56-6  general public describing the need for adult literacy and education
   56-7  services in this state and encouraging qualified persons to support
   56-8  or volunteer to assist programs that provide those services.  As
   56-9  the center determines is appropriate, the center may provide
  56-10  samples of those workbooks and other materials to the governing
  56-11  boards or chief executive officers of state agencies, including
  56-12  institutions of higher education, and to other employers and
  56-13  institutions in this state and shall encourage those entities to
  56-14  distribute or make available the workbooks and other materials to
  56-15  their employees.
  56-16        SECTION 7.04.  LITERACY:  ENGLISH AS A SECOND LANGUAGE.
  56-17  Subchapter B, Chapter 13, Education Code, is amended by adding
  56-18  Section 13.044 to read as follows:
  56-19        Sec. 13.044.  ADULT LITERACY AND ENGLISH AS A SECOND LANGUAGE
  56-20  CURRICULUM.  (a)  Each general academic teaching institution, as
  56-21  defined by Section 61.003, that conducts an approved teacher
  56-22  education program shall include in the curriculum of at least one
  56-23  course in the program a unit that introduces the students to the
  56-24  fundamentals of teaching adult literacy and English as a second
  56-25  language courses.
  56-26        (b)  If the institution operates a center for professional
  56-27  development and technology in connection with its teacher education
   57-1  program, the institution through the center may provide interested
   57-2  students in the education program with opportunities for
   57-3  internships or other field-based training and experience in
   57-4  teaching adult literacy or English as a second language.
   57-5        SECTION 7.05.  INTERAGENCY WORK GROUP ON EARLY CHILD CARE AND
   57-6  EDUCATION PROGRAMS.  (a)  Not later than September 1, 1995, the
   57-7  administrative heads of the Central Education Agency, Texas Higher
   57-8  Education Coordinating Board, Texas Department of Health, Texas
   57-9  Department of Human Services, Department of Protective and
  57-10  Regulatory Services, Interagency Council on Early Childhood
  57-11  Intervention Services, and Texas Head Start Collaboration Project
  57-12  shall each designate a representative to an interagency work group
  57-13  on early child care and education programs.
  57-14        (b)  The representative of the Texas Head Start Collaboration
  57-15  Project shall serve as the chair.
  57-16        (c)  The interagency work group shall study:
  57-17              (1)  the quality of training programs for early
  57-18  childhood education workers;
  57-19              (2)  the need for, design of, and potential funding
  57-20  sources for a statewide professional training and certification
  57-21  program for those workers; and
  57-22              (3)  potential sources of local, state, federal, and
  57-23  private funding and technical assistance to support collaboration
  57-24  and cooperation of local early child care and education programs.
  57-25        (d)  The interagency work group shall complete the study and
  57-26  report its findings to the legislature not later than December 1,
  57-27  1997.
   58-1        (e)  This section expires March 1, 1998.
   58-2        SECTION 7.06.  PILOT PROGRAM TO ASSIST AFDC CLIENTS IN
   58-3  ACHIEVING SELF-SUFFICIENCY.  (a)  The Texas Department of Human
   58-4  Services shall establish a pilot program to extend the period of
   58-5  supported employment for families who receive financial assistance
   58-6  under Chapter 31, Human Resources Code, to help those families
   58-7  become self-sufficient.  In establishing this program the
   58-8  department may:
   58-9              (1)  use a form of fill-the-gap budgeting; or
  58-10              (2)  extend transitional benefits to 24 months.
  58-11        (b)  If the department chooses to extend transitional
  58-12  benefits to 24 months, the department shall determine whether
  58-13  purchasing medical coverage for participants through the state's
  58-14  Texas Employees Uniform Group Insurance Program is more
  58-15  cost-effective than Medicaid coverage.
  58-16        (c)  The department shall report to the governor regarding
  58-17  the program's success in assisting families in becoming more
  58-18  self-sufficient.  The department shall notify members of the 75th
  58-19  and 76th legislatures and the standing committees of the senate and
  58-20  house of representatives having primary jurisdiction over the
  58-21  department of the filing of the report.
  58-22        (d)  In this section, "fill-the-gap budgeting" means a system
  58-23  of budgeting in which benefits are gradually lowered using a
  58-24  percentage of the difference between the standard of need and the
  58-25  countable income to calculate the grant benefit.
  58-26        (e)  This section expires September 1, 1999.
  58-27        SECTION 7.07.  PILOT PROGRAM:  EMERGENCY ASSISTANCE FOR
   59-1  NON-AFDC FAMILIES IN A CRISIS.  (a)  The Texas Department of Human
   59-2  Services shall seek federal funding that would allow the department
   59-3  to establish an emergency assistance pilot program to support
   59-4  families who are not receiving financial assistance under Chapter
   59-5  31, Human Resources Code, who are in a crisis, and who would
   59-6  otherwise be eligible for financial assistance.
   59-7        (b)  The department shall establish the pilot program in a
   59-8  high-employment area of the state or an area that uses the
   59-9  electronic benefits transfer system.
  59-10        (c)  The department by rule shall develop guidelines to
  59-11  administer the program, including:
  59-12              (1)  eligibility guidelines;
  59-13              (2)  guidelines specifying whether the assistance is a
  59-14  one-time cash payment to a family; and
  59-15              (3)  guidelines specifying whether an applicant who
  59-16  receives the emergency assistance must agree to forgo applying for
  59-17  financial assistance under Chapter 31, Human Resources Code, for
  59-18  one year, or another appropriate limitation determined by the
  59-19  department.
  59-20        (d)  The department shall report to the governor regarding
  59-21  the program's success in helping families in a crisis avoid
  59-22  becoming AFDC clients. The department shall notify members of the
  59-23  75th and 76th legislatures and the standing committees of the
  59-24  senate and house of representatives having primary jurisdiction
  59-25  over the department of the filing of the report.
  59-26        (e)  This section expires September 1, 1999.
  59-27        SECTION 7.08.  PILOT PROGRAM:  SAVINGS ACCOUNTS FOR AFDC
   60-1  RECIPIENTS.  (a)  In conjunction with the state treasurer, the
   60-2  Texas Department of Human Services shall establish a pilot program
   60-3  to create individual development accounts for individuals who are
   60-4  receiving financial assistance under Chapter 31, Human Resources
   60-5  Code, to encourage recipients to achieve self-sufficiency.
   60-6        (b)  The department by rule may provide for:
   60-7              (1)  the number of financial assistance recipients who
   60-8  may participate in the program; and
   60-9              (2)  the maximum amount that may be saved by a
  60-10  participant.
  60-11        (c)  The department shall encourage private sector employers
  60-12  to provide matching funds for employed recipients of financial
  60-13  assistance who are participating in this program.
  60-14        (d)  The expenditures from an individual's development
  60-15  account are limited to educational and medical expenses,
  60-16  work-related expenditures, including a self-employment enterprise,
  60-17  and housing or moving expenses for the individual and an individual
  60-18  who is a member of the AFDC certified group.
  60-19        (e)  The department shall report to the governor regarding
  60-20  the success of the program.  The department shall notify members of
  60-21  the 75th and 76th legislatures and the standing committees of the
  60-22  senate and house of representatives having primary jurisdiction
  60-23  over the department of the filing of the report.
  60-24        (f)  This section expires September 1, 1999.
  60-25           ARTICLE 8.  PRIVATIZATION; TASK FORCE; FRAUD AND
  60-26                       ERROR PREVENTION; EBT USE
  60-27        SECTION 8.01.  PRIVATIZATION STUDY.  (a)  The State Council
   61-1  on Competitive Government shall analyze the costs and benefits of
   61-2  contracting with private entities to perform certain functions of
   61-3  the Texas Department of Human Services' financial assistance
   61-4  program under Chapter 31, Human Resources Code.  The council shall
   61-5  study the program's methods of:
   61-6              (1)  determining eligibility;
   61-7              (2)  assisting a financial aid recipient who is seeking
   61-8  a job; and
   61-9              (3)  detecting fraud in the system.
  61-10        (b)  Other state agencies shall cooperate with the State
  61-11  Council on Competitive Government as necessary to implement this
  61-12  section.
  61-13        (c)  The State Council on Competitive Government shall
  61-14  complete its study regarding privatization of some of the functions
  61-15  of the Texas Department of Human Services not later than September
  61-16  1, 1996.  Not later than January 15, 1997, the council shall submit
  61-17  to the governor a report on its findings.  The council shall notify
  61-18  members of the legislature and the standing committees of the
  61-19  senate and house of representatives having primary jurisdiction
  61-20  over the council of the filing of the report.
  61-21        (d)  This section expires February 1, 1997.
  61-22        SECTION 8.02.  PUBLIC ASSISTANCE FRAUD OVERSIGHT TASK FORCE.
  61-23  Chapter 21, Human Resources Code, is amended by adding Section
  61-24  21.0145 to read as follows:
  61-25        Sec. 21.0145.  PUBLIC ASSISTANCE FRAUD OVERSIGHT TASK FORCE.
  61-26  (a)  The Public Assistance Fraud Oversight Task Force is created to
  61-27  advise and assist the department and the department's office of the
   62-1  inspector general in improving the efficiency of fraud
   62-2  investigations and collections.
   62-3        (b)  The task force is composed of a representative of the:
   62-4              (1)  attorney general's office, appointed by the
   62-5  attorney general;
   62-6              (2)  comptroller's office, appointed by the
   62-7  comptroller;
   62-8              (3)  Department of Public Safety, appointed by the
   62-9  public safety director;
  62-10              (4)  state auditor's office, appointed by the state
  62-11  auditor; and
  62-12              (5)  Texas Department of Human Services, appointed by
  62-13  the commissioner of human services.
  62-14        (c)  The comptroller or the comptroller's designee serves as
  62-15  the presiding officer of the task force.  The task force may elect
  62-16  any other necessary officers.
  62-17        (d)  The task force shall meet at least once each fiscal
  62-18  quarter at the call of the presiding officer.
  62-19        (e)  The appointing agency is responsible for the expenses of
  62-20  a member's service on the task force.  Members of the task force
  62-21  receive no additional compensation for serving on the task force.
  62-22        (f)  At least once each fiscal quarter, the department's
  62-23  office of the inspector general shall provide to the task force:
  62-24              (1)  information detailing:
  62-25                    (A)  the number of fraud referrals made to the
  62-26  office and the origin of each referral;
  62-27                    (B)  the time spent investigating each case;
   63-1                    (C)  the number of cases investigated each month,
   63-2  by program and region;
   63-3                    (D)  the dollar value of each fraud case that
   63-4  results in a criminal conviction; and
   63-5                    (E)  the number of cases the office rejects and
   63-6  the reason for rejection, by region; and
   63-7              (2)  any additional information the task force
   63-8  requires.
   63-9        SECTION 8.03.  FRAUD DETECTION THROUGH DATA MATCHING.
  63-10  Chapter 22, Human Resources Code, is amended by adding Section
  63-11  22.029 to read as follows:
  63-12        Sec. 22.029.  PROJECT FOR FRAUD DETECTION AND PREVENTION
  63-13  THROUGH DATA MATCHING.  (a)  In order to enhance the state's
  63-14  ability to detect and prevent fraud in the payment of claims under
  63-15  federal and state entitlement programs, the Health and Human
  63-16  Services Commission may implement a data matching project as
  63-17  described by Subsection (b).
  63-18        (b)  The project shall involve the matching of database
  63-19  information among participating agencies.  The commission shall
  63-20  contract through a memorandum of understanding with each agency
  63-21  participating in the project.  After the data has been matched, the
  63-22  commission shall furnish each participating agency with a list of
  63-23  potential fraudulent occurrences or administrative errors.
  63-24        (c)  Each agency participating in a matching cycle shall
  63-25  document actions taken to investigate and resolve fraudulent issues
  63-26  noted on the list provided by the commission.  The commission shall
  63-27  compile the documentation furnished by participating agencies for
   64-1  each matching cycle, and shall report the results of the project to
   64-2  the governor, lieutenant governor, speaker of the house of
   64-3  representatives, and Legislative Budget Board not later than
   64-4  December 1, 1996.
   64-5        (d)  Agencies participating under Subsection (b) shall
   64-6  cooperate fully with the commission in the prompt provision of data
   64-7  in the requested format, for the identification of suspected
   64-8  fraudulent occurrences, or administrative errors as the commission
   64-9  may otherwise reasonably request in order to carry out the intent
  64-10  of this section.
  64-11        (e)  The commission and participating agencies providing
  64-12  source data for the project shall take all necessary steps to
  64-13  protect the confidentiality of information provided as part of this
  64-14  project, in compliance with all existing state and federal privacy
  64-15  guidelines.
  64-16        SECTION 8.04.  FRAUD PREVENTION.  (a)  Chapter 22, Human
  64-17  Resources Code, is amended by adding Sections 22.027 and 22.028 to
  64-18  read as follows:
  64-19        Sec. 22.027.  FRAUD PREVENTION.  (a)  The department's office
  64-20  of the inspector general shall compile and disseminate accurate
  64-21  information and statistics relating to:
  64-22              (1)  fraud prevention; and
  64-23              (2)  post-fraud referrals received and accepted or
  64-24  rejected from the department's case management system.
  64-25        (b)  The department shall:
  64-26              (1)  aggressively publicize successful fraud
  64-27  prosecutions; and
   65-1              (2)  establish and promote a toll-free hotline for
   65-2  reporting suspected fraud in programs administered by the
   65-3  department.
   65-4        (c)  The department shall develop a cost-effective method of
   65-5  identifying applicants for public assistance in counties bordering
   65-6  other states and in metropolitan areas selected by the department
   65-7  who are already receiving benefits in other states.  If
   65-8  economically feasible, the department may develop a computerized
   65-9  matching system.
  65-10        (d)  The department shall:
  65-11              (1)  verify automobile information that is used as
  65-12  criteria for eligibility; and
  65-13              (2)  establish a computerized matching system with the
  65-14  Texas Department of Criminal Justice to prevent an incarcerated
  65-15  individual from illegally receiving public assistance benefits
  65-16  administered by the department.
  65-17        Sec. 22.028.  ELECTRONIC BENEFITS TRANSFER:  MONITORING.  (a)
  65-18  The private electronic benefits transfer (EBT) operator with which
  65-19  the department contracts to administer the EBT system, shall
  65-20  establish procedures to maintain records that monitor all debit
  65-21  transactions relating to EBT client accounts under this section.
  65-22  The EBT operator shall deliver copies of the records to the
  65-23  department and the comptroller not later than the first day of each
  65-24  month.  The department shall immediately review the records and
  65-25  assess the propriety of the debit transactions.
  65-26        (b)  After reviewing the records under Subsection (a), the
  65-27  department shall take necessary or advisable action to ensure
   66-1  compliance with EBT rules by the EBT operator, retailers, and
   66-2  clients.
   66-3        (c)  No later than the first day of each month, the
   66-4  department shall send the comptroller a report listing the accounts
   66-5  on which enforcement actions or other steps were taken by the
   66-6  department in response to the records received from the EBT
   66-7  operator under this section, and the action taken by the
   66-8  department.  The comptroller shall promptly review the report and,
   66-9  as appropriate, may solicit the advice of the Public Assistance
  66-10  Fraud Oversight Task Force regarding the results of the
  66-11  department's enforcement actions.
  66-12        (b)  The Texas Department of Human Services shall:
  66-13              (1)  evaluate the costs and benefits of the five-day
  66-14  time limit the department prescribes for the investigation of fraud
  66-15  prevention referrals; and
  66-16              (2)  consider lowering the criteria for acceptance by
  66-17  the department's office of the inspector general of post-fraud
  66-18  referrals.
  66-19        (c)  If the department lowers the criteria for accepting
  66-20  post-fraud referrals, the department shall require each department
  66-21  office to apply that criteria.
  66-22        SECTION 8.05.  PREVENTING FRAUD THROUGH CERTIFICATE OF TITLE.
  66-23  The Certificate of Title Act (Article 6687-1, Vernon's Texas Civil
  66-24  Statutes) is amended by adding Section 27a to read as follows:
  66-25        Sec. 27a.  In a county in which the department's automated
  66-26  registration and title system has been implemented, the department
  66-27  shall require an individual applying for a certificate of title to
   67-1  give the applicant's social security number.  The department or
   67-2  county shall enter an applicant's social security number in the
   67-3  department's electronic database but may not print the number on
   67-4  the certificate of title.
   67-5        SECTION 8.06.  PREVENTING FRAUD THROUGH VEHICLE REGISTRATION
   67-6  DATABASE.  Section 17A, Chapter 88, General Laws, Acts of the 41st
   67-7  Legislature, 2nd Called Session, 1929 (Article 6675a-17A, Vernon's
   67-8  Texas Civil Statutes), is amended by amending Subsection (b) and
   67-9  adding Subsection (c) to read as follows:
  67-10        (b)  This section does not apply to the release of
  67-11  information to:
  67-12              (1)  a peace officer, as that term is defined in
  67-13  Article 2.12, Code of Criminal Procedure, if the officer is acting
  67-14  in an official capacity; or
  67-15              (2)  an official of the state, a city, town, county,
  67-16  special district, or other political subdivision of the state if
  67-17  the official is requesting the information for tax purposes or for
  67-18  the purpose of determining eligibility for a state public
  67-19  assistance program.
  67-20        (c)  The Texas Department of Transportation shall provide a
  67-21  dedicated line to its vehicle registration record database for use
  67-22  by other state agencies.   Access to records and transmission of
  67-23  information under this subsection does not affect whether the
  67-24  information is subject to disclosure under Chapter 552, Government
  67-25  Code.
  67-26        SECTION 8.07.  ELECTRONIC IMAGING PROGRAM.  (a)  Subchapter
  67-27  B, Chapter 31, Human Resources Code, is amended by adding Section
   68-1  31.0325 to read as follows:
   68-2        Sec. 31.0325.  ELECTRONIC IMAGING PROGRAM.  (a)  In
   68-3  conjunction with other appropriate agencies, the department by rule
   68-4  shall develop a program to prevent welfare fraud by using a type of
   68-5  electronic fingerprint-imaging or photo-imaging of adult and teen
   68-6  parent applicants for and adult and teen parent recipients of
   68-7  financial assistance under this chapter.
   68-8        (b)  In adopting rules under this section, the department
   68-9  shall ensure that any electronic imaging performed by the
  68-10  department is strictly confidential and is used only to prevent
  68-11  fraud by adult and teen parent recipients of assistance.
  68-12        (c)  The department shall:
  68-13              (1)  establish the program in conjunction with an
  68-14  electronic benefits transfer program;
  68-15              (2)  use an imaging system; and
  68-16              (3)  provide for gradual implementation of this section
  68-17  by selecting specific counties or areas of the state as test sites.
  68-18        (d)  Each fiscal quarter, the department shall submit to the
  68-19  governor and the legislature a report on the status and progress of
  68-20  the programs in the test sites selected under Subsection (c)(3).
  68-21        (b)  The Texas Department of Human Services shall establish
  68-22  the initial electronic imaging program required by Section 31.0325,
  68-23  Human Resources Code, as added by this section, not later than
  68-24  January 1, 1996.
  68-25        SECTION 8.08.  ERROR-RATE REDUCTION.  (a)  Chapter 22, Human
  68-26  Resources Code, is amended by adding Sections 22.025 and 22.026 to
  68-27  read as follows:
   69-1        Sec. 22.025.  ERROR-RATE REDUCTION.  (a)  The department
   69-2  shall:
   69-3              (1)  set progressive goals for improving the
   69-4  department's error rates in the aid to families with dependent
   69-5  children and food stamp programs; and
   69-6              (2)  develop a specific schedule to meet those goals.
   69-7        (b)  Each fiscal quarter, the department shall prepare a
   69-8  report detailing the progress the department has made in reaching
   69-9  its goals.  The report must include an analysis by region of the
  69-10  department's goals and performance relating to error-rate
  69-11  reduction.  The department shall send a copy of the report to the
  69-12  governor's office, the legislative budget office, and any
  69-13  appropriate interagency task force having oversight responsibility
  69-14  over welfare fraud.
  69-15        (c)  As appropriate, the department shall include in its
  69-16  employee evaluation process a rating system that emphasizes
  69-17  error-rate reduction and workload.
  69-18        (d)  The department shall take appropriate action if a region
  69-19  has a higher than average error rate and that rate is not reduced
  69-20  in a reasonable period.
  69-21        Sec. 22.026.  REDUCTION OF CLIENT FRAUD.  The department
  69-22  shall:
  69-23              (1)  ensure that errors attributed to client fraud are
  69-24  appropriate; and
  69-25              (2)  take immediate and appropriate action to limit any
  69-26  client fraud that occurs.
  69-27        (b)  Not later than November 1, 1995, the Texas Department of
   70-1  Human Services shall develop a concentrated and effective plan for
   70-2  the city of Houston region to reduce the department's error rates
   70-3  in the aid to families with dependent children and food stamp
   70-4  programs.
   70-5        (c)  The Texas Department of Human Services shall make the
   70-6  first progress report required by Section 22.025, Human Resources
   70-7  Code, as added by this article, not later than September 1, 1995.
   70-8        SECTION 8.09.  MODIFICATION OF SCREENING AND SERVICE DELIVERY
   70-9  REQUIREMENTS.  Section 33.002, Human Resources Code, is amended by
  70-10  adding Subsection (g) to read as follows:
  70-11        (g)  The department may, within federal limits, modify the
  70-12  one-day screening and service delivery requirements prescribed by
  70-13  Subsection (e) if the department determines that the modification
  70-14  is necessary to reduce fraud in the food stamp program.
  70-15        SECTION 8.10.  TASK FORCE:  ELECTRONIC BENEFITS TRANSFERS.
  70-16  Article 4413(502), Revised Statutes, is amended by adding Section
  70-17  10B to read as follows:
  70-18        Sec. 10B.  INTERAGENCY TASK FORCE ON ELECTRONIC BENEFITS
  70-19  TRANSFERS.  (a)  An interagency task force is created to advise and
  70-20  assist the commission in adding new benefit programs to the
  70-21  statewide electronic benefits transfer (EBT) system.
  70-22        (b)  The task force is composed of:
  70-23              (1)  a representative of:
  70-24                    (A)  the attorney general's office, appointed by
  70-25  the attorney general;
  70-26                    (B)  the comptroller's office, appointed by the
  70-27  comptroller;
   71-1                    (C)  the commission, appointed by the
   71-2  commissioner;
   71-3                    (D)  the Texas Department of Health, appointed by
   71-4  the commissioner of public health;
   71-5                    (E)  the Texas Department of Human Services,
   71-6  appointed by the commissioner of human services;
   71-7                    (F)  the Texas Employment Commission, appointed
   71-8  by the presiding officer of that agency; and
   71-9                    (G)  the Texas Rehabilitation Commission,
  71-10  appointed by the commissioner of that agency; and
  71-11              (2)  two representatives of each of the following
  71-12  groups, appointed by the comptroller:
  71-13                    (A)  retailers who maintain EBT point-of-sale
  71-14  equipment;
  71-15                    (B)  banks or owners of automatic teller
  71-16  machines; and
  71-17                    (C)  consumer or client advocacy organizations.
  71-18        (c)  A member of the task force serves at the will of the
  71-19  appointing agency.
  71-20        (d)  The representative of the comptroller's office serves as
  71-21  presiding officer.  The task force may elect any other necessary
  71-22  officers.
  71-23        (e)  The task force shall meet at the call of the presiding
  71-24  officer.
  71-25        (f)  The appointing agency is responsible for the expenses of
  71-26  a member's service on the task force.  A member of the task force
  71-27  receives no additional compensation for serving on the task force.
   72-1        (g)  The task force shall:
   72-2              (1)  serve as the state counterpoint to the federal EBT
   72-3  task force;
   72-4              (2)  identify benefit programs that merit addition to
   72-5  the state's EBT system;
   72-6              (3)  identify and address problems that may occur if a
   72-7  program is added;
   72-8              (4)  pursue state-federal partnerships to facilitate
   72-9  the development and expansion of the state's EBT system;
  72-10              (5)  track and distribute federal legislation and
  72-11  information from other states that relate to EBT systems;
  72-12              (6)  ensure efficiency and planning coordination in
  72-13  relation to the state's EBT system;
  72-14              (7)  develop a plan utilizing the experience and
  72-15  expertise of the Department of Public Safety of the State of Texas
  72-16  for the use of a photograph or other imaging technology on all EBT
  72-17  cards and, if proven to be effective in reducing fraud and misuse,
  72-18  begin using the new cards starting with replacement cards for cards
  72-19  currently used in the program; and
  72-20              (8)  review current and potential fraud problems with
  72-21  EBT and propose methods to prevent or deter fraud.
  72-22        (h)  In determining which benefit programs can be added to
  72-23  the state's EBT system, the task force shall consider, at a
  72-24  minimum:
  72-25              (1)  the savings to the state;
  72-26              (2)  the ease of addition to existing infrastructure;
  72-27  and
   73-1              (3)  the number of clients served.
   73-2        SECTION 8.11.  FARMERS MARKET EBT PROGRAM.  Article
   73-3  4413(502), Revised Statutes, is amended by adding Section 10C to
   73-4  read as follows:
   73-5        Sec. 10C.  FARMERS MARKET EBT PILOT PROGRAM.  (a)  The Texas
   73-6  Department of Human Services by rule shall establish an electronic
   73-7  benefits transfer (EBT) pilot program for farmers markets.  In
   73-8  adopting rules under this section, the department shall:
   73-9              (1)  follow the recommendations of the working group
  73-10  created by this section; and
  73-11              (2)  ensure that the pilot program is designed so that:
  73-12                    (A)  EBT technology can be used at each farmers
  73-13  market that currently accepts or is interested in accepting food
  73-14  stamps in each county included in the program; and
  73-15                    (B)  each farmer who currently accepts food
  73-16  stamps at a farmers market in a county included in the program is
  73-17  afforded the opportunity to participate in the EBT program.
  73-18        (b)  The department shall select two or more counties in
  73-19  which to establish the pilot program.  In selecting each county,
  73-20  the department shall follow the recommendations of the working
  73-21  group created by this section.  The department shall also follow
  73-22  the recommendations of the working group in determining which
  73-23  technology option to test in each location so as to ensure that the
  73-24  working group has sufficient information to make a responsible
  73-25  recommendation to the department regarding appropriate permanent
  73-26  adoption of EBT to farmers markets.
  73-27        (c)  An interagency working group is created as part of the
   74-1  interagency task force on electronic benefits transfers created
   74-2  under Section 10B of this article.  The working group shall advise
   74-3  and assist the Texas Department of Human Services in:
   74-4              (1)  developing an EBT pilot program for farmers
   74-5  markets; and
   74-6              (2)  selecting two or more counties in which to
   74-7  establish the program.
   74-8        (d)  The working group is composed of:
   74-9              (1)  a representative of:
  74-10                    (A)  the comptroller's office, appointed by the
  74-11  comptroller;
  74-12                    (B)  the Department of Agriculture, appointed by
  74-13  the commissioner of agriculture;
  74-14                    (C)  the Texas Department of Human Services,
  74-15  appointed by the commissioner of human services;
  74-16                    (D)  nonprofit organizations that work with
  74-17  farmers markets and low-income communities, appointed by the
  74-18  commissioner of human services; and
  74-19                    (E)  each company with whom the department
  74-20  contracts for the installation and operation of the EBT system,
  74-21  appointed by the commissioner of human services; and
  74-22              (2)  a farmer who accepts food stamps at a Central
  74-23  Texas farmers market, appointed by the Department of Agriculture.
  74-24        (e)  A member of the working group serves at the will of the
  74-25  appointing agency.
  74-26        (f)  The working group shall elect a presiding officer and
  74-27  any other necessary officers.
   75-1        (g)  The working group shall meet at least quarterly and at
   75-2  other times as necessary at the call of the presiding officer.  The
   75-3  working group shall hold its first meeting not earlier than
   75-4  September 1, 1995, and not later than December 31, 1995, at the
   75-5  call of the commissioner of human services.
   75-6        (h)  The appointing agency is responsible for the expenses of
   75-7  a member's service on the working group.  A member of the working
   75-8  group receives no compensation for serving on the working group.
   75-9        (i)  The working group shall:
  75-10              (1)  establish goals for the pilot program;
  75-11              (2)  develop and submit to the Texas Department of
  75-12  Human Services recommendations on the design and implementation of
  75-13  the pilot program;
  75-14              (3)  recommend to the Texas Department of Human
  75-15  Services two or more counties in which to establish the program;
  75-16  and
  75-17              (4)  submit to the interagency task force on electronic
  75-18  benefits transfers a report on the activities of the working group.
  75-19        (j)  Not later than January 15, 1997, the interagency task
  75-20  force on electronic benefits transfers shall submit to the governor
  75-21  and the 75th Legislature a report concerning the effectiveness of
  75-22  the pilot program.
  75-23        (k)  The appointing agencies shall appoint the members of the
  75-24  working group established by this section not later than September
  75-25  1, 1995.  The Texas Department of Human Services shall establish
  75-26  the pilot program required by this section not later than January
  75-27  1, 1996.
   76-1        (l)  This section expires September 1, 1997.
   76-2                    ARTICLE 9.  GENERAL PROVISIONS:
   76-3                 HEALTH AND HUMAN SERVICES COMMISSION
   76-4        SECTION 9.01.  STRATEGIC PLANS AND BIENNIAL UPDATES.  Section
   76-5  10, Article 4413(502), Revised Statutes, is amended by amending
   76-6  Subsection (d) and adding Subsection (e) to read as follows:
   76-7        (d)  All health and human services agencies shall submit
   76-8  strategic plans and biennial updates to the commission on a date to
   76-9  be determined by commission rule.  The commission shall review and
  76-10  comment on the strategic plans and biennial updates.
  76-11        (e)  Not later than January 1 of each even-numbered year, the
  76-12  commission shall begin formal discussions with each health and
  76-13  human services agency regarding that agency's strategic plan or
  76-14  biennial update.
  76-15        SECTION 9.02.  INFORMATION AND COMPLAINTS.  Section 12,
  76-16  Article 4413(502), Revised Statutes, is amended to read as follows:
  76-17        Sec. 12.  PUBLIC INPUT <INTEREST> INFORMATION AND COMPLAINTS.
  76-18  (a)  The commission shall develop and implement policies that
  76-19  provide the public with a reasonable opportunity to appear before
  76-20  the commission and to speak on any issue under the jurisdiction of
  76-21  the commission.
  76-22        (b)  The commission shall develop and implement routine and
  76-23  ongoing mechanisms, in accessible formats:
  76-24              (1)  to receive consumer input;
  76-25              (2)  to involve consumers in planning, delivery, and
  76-26  evaluation of programs and services under the jurisdiction of the
  76-27  commission; and
   77-1              (3)  to communicate to the public the input received by
   77-2  the commission under this section and actions taken in response to
   77-3  that input.
   77-4        (c)  The commission shall prepare information of public
   77-5  interest describing the functions of the commission and the
   77-6  commission's procedures by which complaints are filed with and
   77-7  resolved by the commission.  The commission shall make the
   77-8  information available to the public and appropriate state agencies.
   77-9        (d) <(c)>  The commissioner by rule shall establish methods
  77-10  by which the public, consumers, and service recipients can be
  77-11  notified of the mailing addresses and telephone numbers of
  77-12  appropriate agency personnel for the purpose of directing
  77-13  complaints to the commission.  The commission may provide for that
  77-14  notification:
  77-15              (1)  on each registration form, application, or written
  77-16  contract for services of a person or entity regulated by the
  77-17  commission;
  77-18              (2)  on a sign prominently displayed in the place of
  77-19  business of each person or entity regulated by the commission; or
  77-20              (3)  in a bill for service provided by a person or
  77-21  entity regulated by the commission.
  77-22        (e) <(d)>  The commission shall keep an information file
  77-23  about each complaint filed with the commission relating to:
  77-24              (1)  a license holder or entity regulated by the
  77-25  commission; or
  77-26              (2)  a service delivered by the commission.
  77-27        (f) <(e)>  If a written complaint is filed with the
   78-1  commission relating to a license holder or entity regulated by the
   78-2  commission or a service delivered by the commission, the
   78-3  commission, at least quarterly and until final disposition of the
   78-4  complaint, shall notify the parties to the complaint of the status
   78-5  of the complaint unless notice would jeopardize an undercover
   78-6  investigation.
   78-7        SECTION 9.03.  LEGISLATIVE APPROPRIATIONS REQUEST APPROVAL.
   78-8  Section 13, Article 4413(502), Revised Statutes, is amended by
   78-9  adding Subsection (d) to read as follows:
  78-10        (d)  A health and human services agency may not submit to the
  78-11  legislature or the governor its legislative appropriations request
  78-12  until the commission reviews and comments on the legislative
  78-13  appropriations request.
  78-14        SECTION 9.04.  APPROPRIATIONS, TRANSFERS, CASELOAD ESTIMATES,
  78-15  AND REPORTING.  Article 4413(502), Revised Statutes, is amended by
  78-16  adding Sections 13A, 13B, 13C, and 13D to read as follows:
  78-17        Sec. 13A.  HEALTH AND HUMAN SERVICES AGENCIES OPERATING
  78-18  BUDGETS.  (a)  In addition to the provisions of the General
  78-19  Appropriations Act, the commission shall review and comment on:
  78-20              (1)  the annual operating budget of each health and
  78-21  human services agency; and
  78-22              (2)  the transfer of funds between budget strategies
  78-23  made by each health and human services agency prior to the transfer
  78-24  of the funds.
  78-25        (b)  The commission shall issue a report, on a quarterly
  78-26  basis, regarding the projected expenditures by budget strategy of
  78-27  each health and human services agency compared to each agency's
   79-1  operating budget.
   79-2        Sec. 13B.  FEDERAL FUNDS.  Notwithstanding any other state
   79-3  law and to the extent permitted by federal law, the commission may
   79-4  review and comment on an operational or funding plan or a
   79-5  modification to that plan prepared by a health and human services
   79-6  agency designated as the single state agency to administer federal
   79-7  funds.
   79-8        Sec. 13C.  AUTOMATED SYSTEMS.  A health and human services
   79-9  agency may not submit its plans to the Department of Information
  79-10  Resources under Subchapter E, Chapter 2054, Government Code, until
  79-11  those plans are approved by the commission.
  79-12        Sec. 13D.  COORDINATION AND APPROVAL OF CASELOAD ESTIMATES.
  79-13  (a)  The commission shall coordinate and approve caseload estimates
  79-14  made for programs administered by health and human services
  79-15  agencies.
  79-16        (b)  To implement this section, the commission shall:
  79-17              (1)  adopt uniform guidelines to be used by health and
  79-18  human services agencies in estimating their caseloads, with
  79-19  allowances given for those agencies for which exceptions from the
  79-20  guidelines may be necessary;
  79-21              (2)  assemble a single set of economic and demographic
  79-22  data and provide that data to each health and human services agency
  79-23  to be used in estimating its caseloads; and
  79-24              (3)  seek advice from health and human services
  79-25  agencies, the Legislative Budget Board, the governor's budget
  79-26  office, the comptroller, and other relevant agencies as needed to
  79-27  coordinate the caseload estimating process.
   80-1        (c)  The commission shall assemble caseload estimates made by
   80-2  health and human services agencies into a coherent, uniform report
   80-3  and shall  update the report quarterly, with assistance from those
   80-4  agencies.  The commission shall publish the report and make it
   80-5  readily available to state and local agencies and interested
   80-6  private organizations.
   80-7        (d)  In the report prepared under Subsection (c) of this
   80-8  section, the commission shall explain the caseload estimates using
   80-9  monthly averages, annual unduplicated recipients, annual service
  80-10  usage, and other commonly used measures.
  80-11        (e)  The commission shall attach a copy of the report
  80-12  prepared under Subsection (c) of this section to the consolidated
  80-13  health and human services budget recommendation submitted to the
  80-14  Legislative Budget Board under Section 13 of this article and shall
  80-15  also submit the report to the legislature when it convenes in
  80-16  regular session.
  80-17        SECTION 9.05.  ACTIVITIES OF COMMISSIONER.  Section 14,
  80-18  Article 4413(502), Revised Statutes, is amended  by amending
  80-19  Subsection (a) and adding Subsection (d) to read as follows:
  80-20        (a)  The commissioner shall:
  80-21              (1)  arbitrate and render the <a> final decision on
  80-22  interagency disputes;
  80-23              (2)  facilitate and enforce coordinated planning and
  80-24  delivery of health and human services, including compliance with
  80-25  the coordinated strategic plan, co-location of services, integrated
  80-26  intake, and coordinated referral and case management;
  80-27              (3)  request budget execution for the transfer of funds
   81-1  from one agency to another;
   81-2              (4)  establish a federal health and human services
   81-3  funds management system and maximize the availability of those
   81-4  funds;
   81-5              (5)  develop with the Department of Information
   81-6  Resources automation standards for computer systems to enable
   81-7  health and human services agencies to share pertinent data;
   81-8              (6)  establish and enforce uniform regional boundaries
   81-9  for all health and human services agencies;
  81-10              (7)  carry out statewide health and human services
  81-11  needs surveys and forecasting;
  81-12              (8)  perform independent special outcome evaluations of
  81-13  health and human services programs and activities;
  81-14              (9)  adopt rules necessary to carry out the
  81-15  commission's duties under this Act; and
  81-16              (10)  review and comment on health and human services
  81-17  agency formulas <develop a formula> for the distribution of funds
  81-18  to ensure that the formulas, to the extent permitted by federal
  81-19  law, consider <considers> such need factors as client base,
  81-20  population, and economic and geographic factors within the regions
  81-21  of the state.
  81-22        (d)  Not later than the end of the first month of each fiscal
  81-23  year, the commissioner shall submit to the governor, the lieutenant
  81-24  governor, the speaker of the house of representatives, the
  81-25  comptroller, and the Legislative Budget Board a work plan outlining
  81-26  the activities of the commission for that fiscal year.  The work
  81-27  plan must establish priorities for the commission's activities
   82-1  based on available resources.
   82-2        SECTION 9.06.  DELIVERY OF SERVICES.  Article 4413(502),
   82-3  Revised Statutes, is amended by adding Section 14A to read as
   82-4  follows:
   82-5        Sec. 14A.  DELIVERY OF SERVICES.  To integrate and streamline
   82-6  service delivery and facilitate access to services, the
   82-7  commissioner may request a health and human services agency to take
   82-8  a specific action and may recommend the manner in which the
   82-9  streamlining is to be accomplished, including requesting each
  82-10  health and human services agency to:
  82-11              (1)  simplify agency procedures;
  82-12              (2)  automate agency procedures;
  82-13              (3)  coordinate service planning and management tasks
  82-14  between and among health and human services agencies;
  82-15              (4)  reallocate staff resources;
  82-16              (5)  adopt rules;
  82-17              (6)  amend, waive, or repeal existing rules; and
  82-18              (7)  take other necessary actions.
  82-19        SECTION 9.07.  AGENCY STAFF.  Article 4413(502), Revised
  82-20  Statutes, is amended by adding Section 23 to read as follows:
  82-21        Sec. 23.  USE OF AGENCY STAFF.  To the extent requested by
  82-22  the commission, a health and human services agency shall assign
  82-23  existing staff to perform a function under this article.
  82-24        SECTION 9.08.  REPORTS.  Article 4413(502), Revised Statutes,
  82-25  is amended by adding Section 24 to read as follows:
  82-26        Sec. 24.  REPORTS ON DELIVERY OF SERVICES.  (a)  Each
  82-27  executive head of a health and human services agency shall report
   83-1  quarterly to the governing body of that agency on that agency's
   83-2  efforts to streamline and simplify the delivery of services.  The
   83-3  agency shall submit a copy of the report to the commission.
   83-4        (b)  The commission shall prepare and deliver a semiannual
   83-5  report to the governor, the lieutenant governor, the speaker of the
   83-6  house of representatives, the comptroller, the Legislative Budget
   83-7  Board, and appropriate legislative committees on the efforts of the
   83-8  health and human services agencies to streamline the delivery of
   83-9  services provided by those agencies.
  83-10        (c)  The commissioner shall adopt rules relating to the
  83-11  reports required by Subsection (a) of this section, including rules
  83-12  specifying when and in what manner an agency must report and what
  83-13  information must be included in the report.  Each agency shall
  83-14  follow the rules adopted by the commissioner under this section.
  83-15        SECTION 9.09.  LOCATION OF OFFICES.  Section 3.08, Chapter
  83-16  15, Acts of the 72nd Legislature, 1st Called Session, 1991 (Article
  83-17  4413(505), Vernon's Texas Civil Statutes), is amended to read as
  83-18  follows:
  83-19        Sec. 3.08.  LOCATION <CO-LOCATION> OF OFFICES AND FACILITIES.
  83-20  (a)  As leases on office space expire, the commission shall
  83-21  determine the needs for space and the location of health and human
  83-22  services agency offices to enable the commission to achieve a
  83-23  cost-effective one-stop or service center method of health and
  83-24  human service delivery.  <The administrative heads of the health
  83-25  and human service agencies shall review the agencies' current
  83-26  office and facility arrangements and study the feasibility of
  83-27  co-locating offices or facilities located in the same geographic
   84-1  area and shall report back to the commission not later than
   84-2  September 1, 1992.>
   84-3        (b)  <On receiving approval from the commission, the
   84-4  administrative heads of two or more health and human service
   84-5  agencies with offices or facilities located in the same geographic
   84-6  region shall co-locate the offices or facilities if the results of
   84-7  the study conducted under this section show that client access
   84-8  would be enhanced, the cost of co-location is not greater than the
   84-9  combined operating costs of the separate offices or facilities of
  84-10  those agencies, and the co-location would improve the efficiency of
  84-11  the delivery of services.>
  84-12        <(c)>  In this section, "health and human service agencies"
  84-13  includes the:
  84-14              (1)  Interagency Council on Early Childhood
  84-15  Intervention Services;
  84-16              (2)  Texas Department on Aging;
  84-17              (3)  Texas Commission on Alcohol and Drug Abuse;
  84-18              (4)  Texas Commission for the Blind;
  84-19              (5)  Texas Commission for the Deaf and Hearing
  84-20  Impaired;
  84-21              (6)  Texas Department of Health;
  84-22              (7)  Texas Department of Human Services;
  84-23              (8)  Texas Juvenile Probation Commission;
  84-24              (9)  Texas Department of Mental Health and Mental
  84-25  Retardation;
  84-26              (10)  Texas Rehabilitation Commission; and
  84-27              (11)  Department of Protective and Regulatory Services.
   85-1        SECTION 9.10.  LEASING OFFICE SPACE.  Section 6.031(a), State
   85-2  Purchasing and General Services Act (Article 601b, Vernon's Texas
   85-3  Civil Statutes), is amended to read as follows:
   85-4        (a)  Notwithstanding any other provision of this article, the
   85-5  <The> commission may not lease office space to service the needs of
   85-6  any <a single> health and human service agency unless the Health
   85-7  and Human Services Commission has approved the office space for the
   85-8  agency <agency can provide the commission with a reason for not
   85-9  sharing the office space with one or more other health and human
  85-10  service agencies>.
  85-11        SECTION 9.11.  INTEGRATED PILOT:  HARRIS COUNTY HOSPITAL
  85-12  DISTRICT AND THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON.
  85-13  (a)  The Health and Human Services Commission shall expand its
  85-14  existing integrated eligibility pilot programs to include the
  85-15  Harris County Hospital District and The University of Texas Medical
  85-16  Branch at Galveston.
  85-17        (b)  A contract with the Harris County Hospital District or
  85-18  The University of Texas Medical Branch at Galveston shall:
  85-19              (1)  specify performance-based measures to ensure error
  85-20  rates are kept within acceptable federal limits;
  85-21              (2)  assure that the contractor assumes all liability
  85-22  for any penalty incurred as a result of failure to meet federal
  85-23  standards; and
  85-24              (3)  authorize the district and the medical branch to
  85-25  simplify processes as much as possible and to use proprietary
  85-26  software.
  85-27        (c)  Subject to approval by the Health and Human Services
   86-1  Commission,  the Texas Department of Human Services shall establish
   86-2  standards for other automated systems to allow other entities to
   86-3  file information directly.
   86-4        (d)  The Health and Human Services Commission shall study the
   86-5  feasibility of enabling contractors or agencies other than the
   86-6  Texas Department of Human Services to provide or assist in the
   86-7  provision of client eligibility studies, determinations, and
   86-8  certifications.  In determining feasibility, the commission shall
   86-9  consider:
  86-10              (1)  error rates;
  86-11              (2)  the state's potential liability;
  86-12              (3)  expansion of the client population; and
  86-13              (4)  the federal single state agency restrictions.
  86-14        SECTION 9.12.  INTEGRATED ELIGIBILITY DETERMINATION.  (a)
  86-15  Not later than September 1, 1996, the Health and Human Services
  86-16  Commission, subject to the availability of funds to the commission
  86-17  and to health and human services agencies, shall have completed the
  86-18  development and substantial implementation of a plan for an
  86-19  integrated eligibility determination and service delivery system
  86-20  for health and human services at the local and regional levels.
  86-21  The plan shall specify the dates by which all elements of the plan
  86-22  must be implemented.
  86-23        (b)  The integrated eligibility determination and service
  86-24  delivery system shall be developed and implemented to achieve at
  86-25  least a one-percent savings in the cost of providing administrative
  86-26  and other services and staff resulting from streamlining and
  86-27  eliminating duplication of services.  The commission shall use the
   87-1  resulting savings to further develop the integrated system and to
   87-2  provide other health and human services.
   87-3        (c)  The commission shall examine cost-effective methods to
   87-4  address:
   87-5              (1)  fraud in the assistance programs; and
   87-6              (2)  the error rate in eligibility determination.
   87-7        (d)  In consultation and coordination with the State Council
   87-8  on Competitive Government, the commission shall make and implement
   87-9  recommendations on services or functions of the integrated
  87-10  eligibility determination and service delivery system that could be
  87-11  provided more effectively through the use of competitive bidding or
  87-12  by contracting with local governments and other appropriate
  87-13  entities.  If the commission determines that private contracting
  87-14  may be effective, the commission may automate the determination of
  87-15  client eligibility by contracting with a private firm to conduct
  87-16  application processing.
  87-17        (e)  Not later than October 1, 1996, the commission shall
  87-18  develop a plan to consolidate administrative and service delivery
  87-19  functions in addition to the integrated eligibility determination
  87-20  and service delivery system in order to minimize duplication.  The
  87-21  commission shall prepare a report of the plan for submission to the
  87-22  governor, the lieutenant governor, the speaker of the house of
  87-23  representatives, the comptroller, and the 75th Legislature when it
  87-24  convenes.
  87-25        SECTION 9.13.  INTEGRATED SERVICE DELIVERY.  (a)  Not later
  87-26  than September 1, 1997, the Health and Human Services Commission
  87-27  shall develop, using existing state, local, and private resources,
   88-1  an integrated approach to the health and human service delivery
   88-2  system that includes a cost-effective one-stop or service center
   88-3  method of delivery to a client.  The commission shall determine the
   88-4  feasibility of using hospitals, schools, mental health and mental
   88-5  retardation centers, health clinics, commercial locations in malls,
   88-6  and other appropriate locations to achieve this integrated
   88-7  approach.
   88-8        (b)  The health and human services agencies shall cooperate
   88-9  with the commission in developing the integrated eligibility
  88-10  determination and service delivery system.
  88-11        (c)  This section expires September 1, 1997.
  88-12        SECTION 9.14.  MAXIMIZING FEDERAL FUNDING.  The state shall
  88-13  make an effort to maximize funding for the health and human
  88-14  services agencies in order to draw down federal money to which the
  88-15  state could possibly be entitled to receive for child care,
  88-16  employment, and other health and human services related programs.
  88-17  Each health and human services agency shall enter into agreements
  88-18  as described by Chapter 141, Acts of the 63rd Legislature, Regular
  88-19  Session, 1973 (Article 1118x, Vernon's Texas Civil Statutes),
  88-20  Chapter 683, Acts of the 66th Legislature, 1979 (Article 1118y,
  88-21  Vernon's Texas Civil Statutes), and Article 1118z, Revised
  88-22  Statutes, to expand transportation services for persons receiving
  88-23  assistance for services under a federal program administered by
  88-24  that agency.
  88-25        SECTION 9.15.  APPLICATION.  The changes in law made by this
  88-26  article apply beginning with appropriations made for the fiscal
  88-27  year beginning September 1, 1995.
   89-1                   ARTICLE 10.  SPOUSAL MAINTENANCE
   89-2        SECTION 10.01.  PURPOSE.  (a)  It is the intent of the
   89-3  legislature in this article to provide spousal maintenance
   89-4  primarily as a temporary rehabilitative measure for a divorced
   89-5  spouse whose ability for self-support is lacking or has
   89-6  deteriorated through the passage of time while the spouse was
   89-7  engaged in homemaking activities and whose capital assets are
   89-8  insufficient to provide support.
   89-9        (b)  It is the intent of the legislature in this article that
  89-10  spousal support should be terminated in the shortest reasonable
  89-11  time, not to exceed three years, in which the former spouse is able
  89-12  to be employed or to acquire the necessary skills to become
  89-13  self-supporting.  Only in circumstances in which the former spouse
  89-14  cannot become self-supporting by reason of incapacitating physical
  89-15  or mental disability should maintenance be extended beyond this
  89-16  period.
  89-17        SECTION 10.02.  SPOUSAL MAINTENANCE.  Chapter 3, Family Code,
  89-18  is amended by adding Subchapter G to read as follows:
  89-19                      SUBCHAPTER G.  MAINTENANCE
  89-20        Sec. 3.9601.  Definition.  In this subchapter, "maintenance"
  89-21  means an award in a divorce, annulment, or suit to declare a
  89-22  marriage void of periodic payments from the future income of one
  89-23  spouse for the support of the other spouse.
  89-24        Sec. 3.9602.  Eligibility for Maintenance.  In a suit for
  89-25  divorce, annulment, to declare a marriage void, or in a proceeding
  89-26  for maintenance in a court with personal jurisdiction over both
  89-27  former spouses following the dissolution of their marriage by a
   90-1  court that lacked personal jurisdiction over an absent spouse, the
   90-2  court may order maintenance for either spouse only if:
   90-3              (1)  the spouse from whom maintenance is sought was
   90-4  convicted of, or received deferred adjudication for, a criminal
   90-5  offense that also constitutes an act of family violence under
   90-6  Section 71.01, Family Code, and the offense occurred:
   90-7                    (A)  within two years before the date on which a
   90-8  suit for dissolution of the marriage was filed; or
   90-9                    (B)  during the pendency of the suit; or
  90-10              (2)  the duration of the marriage was 10 years or
  90-11  longer, the spouse seeking maintenance lacks sufficient property,
  90-12  including property distributed to the spouse under this code, to
  90-13  provide for the spouse's minimum reasonable needs, as limited by
  90-14  Section 3.9605, and the spouse seeking maintenance:
  90-15                    (A)  is unable to support himself or herself
  90-16  through appropriate employment because of an incapacitating
  90-17  physical or mental disability;
  90-18                    (B)  is the custodian of a child who requires
  90-19  substantial care and personal supervision because a physical or
  90-20  mental disability makes it necessary, taking into consideration the
  90-21  needs of the child, that the spouse not be employed outside the
  90-22  home; or
  90-23                    (C)  clearly lacks earning ability in the labor
  90-24  market adequate to provide support for the spouse's minimum
  90-25  reasonable needs, as limited by Section 3.9605.
  90-26        Sec. 3.9603.  Factors to Determine Maintenance.  A court that
  90-27  determines that a spouse is eligible to receive maintenance under
   91-1  Section 3.9602 shall determine the nature, amount, duration, and
   91-2  manner of periodic payments by considering all relevant factors,
   91-3  including:
   91-4              (1)  the financial resources of the spouse seeking
   91-5  maintenance, including the community and separate property and
   91-6  liabilities apportioned to that spouse in the dissolution
   91-7  proceeding, and that spouse's ability to meet his or her needs
   91-8  independently;
   91-9              (2)  the education and employment skills of the spouses
  91-10  and the time necessary to acquire sufficient education or training
  91-11  to enable the spouse seeking maintenance to find appropriate
  91-12  employment, the availability of that education or training, and the
  91-13  feasibility of that education or training;
  91-14              (3)  the duration of the marriage;
  91-15              (4)  the age, employment history, earning ability, and
  91-16  physical and emotional condition of the spouse seeking maintenance;
  91-17              (5)  the ability of the spouse from whom maintenance is
  91-18  sought to meet that spouse's personal needs and to provide periodic
  91-19  child support payments, if applicable, while meeting the personal
  91-20  needs of the spouse seeking maintenance;
  91-21              (6)  acts by either spouse resulting in excessive or
  91-22  abnormal expenditures or destruction, concealment, or fraudulent
  91-23  disposition of community property, joint tenancy, or other property
  91-24  held in common;
  91-25              (7)  the comparative financial resources of the
  91-26  spouses, including medical, retirement, insurance, or other
  91-27  benefits, and the separate property of each spouse;
   92-1              (8)  the contribution by one spouse to the education,
   92-2  training, or increased earning power of the other spouse;
   92-3              (9)  the property brought to the marriage by either
   92-4  spouse;
   92-5              (10)  the contribution of a spouse as homemaker;
   92-6              (11)  any marital misconduct of the spouse seeking
   92-7  maintenance; and
   92-8              (12)  the efforts of the spouse seeking maintenance to
   92-9  pursue available employment counseling as provided by Chapter 304,
  92-10  Labor Code.
  92-11        Sec. 3.9604.  PRESUMPTION.  (a)  Except as provided by
  92-12  Subsection (b), it is presumed that maintenance is not warranted
  92-13  unless the spouse seeking maintenance has exercised diligence in:
  92-14              (1)  seeking suitable employment; or
  92-15              (2)  developing the necessary skills to become
  92-16  self-supporting during any period of separation and during the
  92-17  pendency of the divorce suit.
  92-18        (b)  This section does  not apply to a spouse who is not able
  92-19  to satisfy the presumption in Subsection (a) because of an
  92-20  incapacitating physical or mental disability.
  92-21        Sec. 3.9605.  DURATION OF MAINTENANCE ORDER.  (a)  Except as
  92-22  provided by Subsection (b), a court:
  92-23              (1)  may not enter a maintenance order that remains in
  92-24  effect for more than three years after the date of the order; and
  92-25              (2)  shall limit the duration of a maintenance order to
  92-26  the shortest reasonable period of time that allows the spouse
  92-27  seeking maintenance to meet the spouse's minimum reasonable needs
   93-1  by obtaining appropriate employment or developing an appropriate
   93-2  skill, unless the ability of the spouse to provide for the spouse's
   93-3  minimum reasonable needs through employment is substantially or
   93-4  totally diminished because of:
   93-5                    (A)  physical or mental disability;
   93-6                    (B)  duties as the custodian of an infant or
   93-7  young child; or
   93-8                    (C)  another compelling impediment to gainful
   93-9  employment.
  93-10        (b)  If a spouse seeking maintenance is unable to support
  93-11  himself or herself through appropriate employment because of
  93-12  incapacitating physical or mental disability, the court may order
  93-13  maintenance for an indefinite period for as long as the disability
  93-14  continues.  The court may order periodic review of its order, on
  93-15  the request of either party or on its own motion, to determine
  93-16  whether the disability is continuing.  The continuation of spousal
  93-17  maintenance under these circumstances is subject to a motion to
  93-18  modify as provided by Section 3.9608.
  93-19        Sec. 3.9606.  AMOUNT OF MAINTENANCE.  (a)  A court may not
  93-20  enter a maintenance order that requires a spouse to pay monthly
  93-21  more than the lesser of:
  93-22              (1)  $2,500; or
  93-23              (2)  20 percent of the spouse's average monthly gross
  93-24  income.
  93-25        (b)  The court shall set the amount that a spouse is required
  93-26  to pay in a maintenance order to provide for the minimum reasonable
  93-27  needs of the spouse receiving the maintenance under the order,
   94-1  considering any employment or property received in the divorce or
   94-2  annulment or otherwise owned by the spouse receiving the
   94-3  maintenance that contributes to the minimum reasonable needs of
   94-4  that spouse.
   94-5        (c)  Veterans Administration service-connected disability
   94-6  compensation, social security benefits and disability benefits, and
   94-7  workers' compensation benefits are excluded from maintenance.
   94-8        Sec. 3.9607.  TERMINATION.  (a)  The obligation to pay future
   94-9  maintenance terminates on the death of either party or on the
  94-10  remarriage of the party receiving maintenance.
  94-11        (b)  After a hearing, the court shall terminate the
  94-12  maintenance order if the party receiving maintenance cohabits with
  94-13  another person in a permanent place of abode on a continuing,
  94-14  conjugal basis.
  94-15        Sec. 3.9608.  Modification of Maintenance Order.  (a)  The
  94-16  amount of maintenance specified in a court order or the portion of
  94-17  a decree that provides for the support of a former spouse may be
  94-18  reduced by the filing of a motion in the court that originally
  94-19  entered the order.  A party affected by the order or the portion of
  94-20  the decree to be modified may file the motion.
  94-21        (b)  Notice of a motion to modify maintenance and the
  94-22  response, if any, are governed by the Texas Rules of Civil
  94-23  Procedure applicable to the filing of an original lawsuit.  Notice
  94-24  must be given by service of citation, and a response must be in the
  94-25  form of an answer due at or before 10 a.m.  of the first Monday
  94-26  after 20 days after the date of service.  A court shall set a
  94-27  hearing on the motion in the manner provided by Rule 245, Texas
   95-1  Rules of Civil Procedure.
   95-2        (c)  After a hearing, the court may modify an original or
   95-3  modified order or portion of a decree providing for maintenance on
   95-4  a proper showing of a material and substantial change in
   95-5  circumstances of either party.  The court shall apply the
   95-6  modification only to payments accruing after the filing of the
   95-7  motion to modify.
   95-8        (d)  A loss of employment or circumstances that render a
   95-9  former spouse unable to support himself or herself through
  95-10  appropriate employment by reason of incapacitating physical or
  95-11  mental disability that occurs after the divorce or annulment are
  95-12  not grounds for the institution of spousal maintenance for the
  95-13  benefit of the former spouse.
  95-14        Sec. 3.9609.  Enforcement of Maintenance Order.  (a)  The
  95-15  court may enforce by contempt its maintenance order or an agreement
  95-16  for the payment of maintenance  voluntarily entered into between
  95-17  the parties and approved by the court.
  95-18        (b)  On the motion of a party entitled to receive maintenance
  95-19  payments, the court may render judgment against a defaulting party
  95-20  for an amount unpaid and owing after notice by service of citation,
  95-21  answer, if any, and a hearing finding that the defaulting party has
  95-22  failed or refused to carry out the terms of the order.  The
  95-23  judgment may be enforced by any means available for the enforcement
  95-24  of judgments for debts.
  95-25        (c)  It is an affirmative defense to an allegation of
  95-26  contempt of court or of the violation of a condition of probation
  95-27  requiring payment of court-ordered maintenance that the obligor:
   96-1              (1)  lacked the ability to provide maintenance in the
   96-2  amount ordered;
   96-3              (2)  lacked property that could be sold, mortgaged, or
   96-4  otherwise pledged to raise the funds needed;
   96-5              (3)  attempted unsuccessfully to borrow the needed
   96-6  funds; and
   96-7              (4)  did not know of a source from which the money
   96-8  could have been borrowed or otherwise legally obtained.
   96-9        (d)  The issue of the existence of an affirmative defense
  96-10  does not arise unless evidence is admitted supporting the defense.
  96-11  If the issue of the existence of an affirmative defense arises, an
  96-12  obligor must prove the affirmative defense by a preponderance of
  96-13  the evidence.
  96-14        Sec. 3.9610.  Putative Spouse.  In a suit to declare a
  96-15  marriage void, a putative spouse who did not have knowledge of an
  96-16  existing impediment to a valid marriage may be awarded maintenance
  96-17  if otherwise qualified to receive maintenance under this
  96-18  subchapter.
  96-19        Sec. 3.9611.  Unmarried Cohabitants.  An order for
  96-20  maintenance is not authorized between unmarried cohabitants under
  96-21  any circumstances.
  96-22        SECTION 10.03.  TRANSITION.  (a)  Except as provided by
  96-23  Subsection (b) of this section, Sections 10.01 and 10.02 of this
  96-24  article take effect September 1, 1995, and apply only to an action
  96-25  filed on or after that date.
  96-26        (b)  Section 10.02 of this article does not apply to an
  96-27  action filed on or before January 1, 1997, if a prior suit for
   97-1  dissolution of a marriage between the parties was nonsuited by the
   97-2  spouse seeking maintenance on or after January 1, 1995, and on or
   97-3  before August 31, 1995.
   97-4        (c)  An action to which Section 10.02 of this article does
   97-5  not apply is governed by the law in effect at the time the action
   97-6  was filed, and that law is continued in effect only for that
   97-7  purpose.
   97-8                  ARTICLE 11.  WORKFORCE DEVELOPMENT
   97-9        SECTION 11.01.  The heading of Subtitle B, Title 4, Labor
  97-10  Code, is amended to read as follows:
  97-11          SUBTITLE B.  TEXAS WORKFORCE COMMISSION; WORKFORCE
  97-12                       DEVELOPMENT; <ADDITIONAL>
  97-13                          EMPLOYMENT SERVICES
  97-14        SECTION 11.02.  (a)  Chapter 301, Labor Code, is repealed.
  97-15        (b)  Subchapters A-E and G, Chapter 202, Labor Code, are
  97-16  moved from Subtitle A, Title 4, Labor Code, to Subtitle B of that
  97-17  title, redesignated as Chapter 301, Labor Code, and amended to read
  97-18  as follows:
  97-19           CHAPTER 301 <202>.  TEXAS WORKFORCE <EMPLOYMENT>
  97-20                              COMMISSION
  97-21               SUBCHAPTER A.  ORGANIZATION OF COMMISSION
  97-22        Sec. 301.001.  PURPOSE; AGENCY GOALS; DEFINITIONS.  (a)  The
  97-23  Texas Workforce Commission is a state agency established to operate
  97-24  an integrated workforce development system in this state, in
  97-25  particular through the consolidation of job training, employment,
  97-26  and employment-related educational programs available in this
  97-27  state, and to administer the unemployment compensation insurance
   98-1  program in this state.
   98-2        (b)  The commission shall meet the needs of:
   98-3              (1)  the businesses of this state for the development
   98-4  of a highly skilled and productive workforce;
   98-5              (2)  the workers of this state for education, skills
   98-6  training, and labor market information to enhance their
   98-7  employability, earnings, and standard of living and for an
   98-8  efficient unemployment compensation system;
   98-9              (3)  the people of this state who are making a
  98-10  transition into the workforce, particularly persons receiving
  98-11  public assistance, displaced homemakers, and students making the
  98-12  transition from school to work;
  98-13              (4)  the communities of this state to provide economic
  98-14  incentive programs for job creation, attraction, and expansion; and
  98-15              (5)  the taxpayers of this state to ensure that tax
  98-16  revenues for workforce development are spent efficiently and
  98-17  effectively.
  98-18        (c)  A reference in this code or another law to the Texas
  98-19  Employment Commission means the Texas Workforce Commission.
  98-20        (d)  In this title:
  98-21              (1)  "Chair" means the chair of the commission.
  98-22              (2)  "Commission" means the Texas Workforce Commission.
  98-23              (3)  "Council" means the Council on Workforce and
  98-24  Economic Competitiveness.
  98-25              (4)  "Employment service" means the commission or the
  98-26  entity designated by the commission to implement duties imposed
  98-27  under the Wagner-Peyser Act (29 U.S.C. Section 49 et seq.).
   99-1              (5)  "Executive director" means the executive director
   99-2  of the commission.
   99-3              (6)  "Local workforce development board" means an
   99-4  entity formed under Section 4.01, Workforce and Economic
   99-5  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
   99-6  Statutes).
   99-7        Sec. 301.002 <202.001>.  Membership Requirements.  (a)  The
   99-8  commission <Texas Employment Commission> is composed of three
   99-9  members:
  99-10              (1)  one of whom shall be a representative of labor;
  99-11              (2)  one of whom shall be a representative of
  99-12  employers; and
  99-13              (3)  one of whom <shall be impartial and> shall
  99-14  represent the public.
  99-15        (b)  The governor shall appoint the members and make the
  99-16  appointments without regard to the race, color, disability <creed>,
  99-17  sex, religion, age, or national origin of the appointees.
  99-18        Sec. 301.003 <202.002>.  Member Restrictions.  (a)  A member
  99-19  of the commission may not engage in any other business, vocation,
  99-20  or employment during the member's term on the commission.
  99-21        (b)  The public member of the commission may not be an
  99-22  officer, employee, or paid consultant of a labor-oriented or
  99-23  employer-oriented trade association while the member serves on the
  99-24  commission.
  99-25        Sec. 301.004 <202.003>.  Effect of Lobbying Activity.  A
  99-26  person who is required to register as a lobbyist under Chapter 305,
  99-27  Government Code, may not serve as a member of the commission or act
  100-1  as the general counsel to the commission while so registered.  If
  100-2  the person ceases to engage in lobbying activity and files a notice
  100-3  of termination as prescribed by Section 305.008, Government Code,
  100-4  the person may serve as a member of the commission or act as the
  100-5  general counsel to the commission.
  100-6        Sec. 301.005 <202.004>.  Terms; Vacancy.  (a)  Members of the
  100-7  commission are appointed for staggered six-year terms, with one
  100-8  member's term expiring on February 1 of each odd-numbered year.
  100-9        (b)  A member appointed to fill a vacancy shall hold office
 100-10  for the remainder of that term.
 100-11        Sec. 301.006 <202.005>.  CHAIR <CHAIRMAN>.  (a)  The governor
 100-12  shall designate <member representing the public is> the chair
 100-13  <chairman> of the commission from among the members of the
 100-14  commission.  The chair shall serve in that capacity for a two-year
 100-15  term.  The governor may redesignate the same member to serve
 100-16  consecutive terms.
 100-17        (b)  Notwithstanding Subsection (a), the member of the
 100-18  commission who represents the public shall serve as chair:
 100-19              (1)  when the commission acts under Subchapter D,
 100-20  Chapter 212; and
 100-21              (2)  in commission hearings involving unemployment
 100-22  insurance issues regarding tax coverage, contributions, or
 100-23  reimbursements.
 100-24        Sec. 301.007 <202.006>.  Removal of Commission Members.
 100-25  (a)  It is a ground for removal from the commission by impeachment
 100-26  that a member:
 100-27              (1)  during any 60-day period, is absent from each
  101-1  commission meeting for which the member received at least 48 hours'
  101-2  notice;
  101-3              (2)  is unable to discharge the member's duties for the
  101-4  remainder of the term for which the member was appointed because of
  101-5  illness or other disability; or
  101-6              (3)  violates a prohibition established by Section
  101-7  301.003 <202.002> or 301.004 <202.003>.
  101-8        (b)  The validity of an action of the commission is not
  101-9  affected by the fact that it was taken when a ground for the
 101-10  removal of a member of the commission existed.
 101-11        Sec. 301.008.  APPLICATION OF SUNSET ACT.  The Texas
 101-12  Workforce Commission is subject to Chapter 325, Government Code
 101-13  (Texas Sunset Act).  Unless continued in existence as provided by
 101-14  that chapter, the commission is abolished September 1, 1999.
 101-15        Sec. 301.009.  COMMISSION DIVISIONS.  (a)  The commission
 101-16  shall have:
 101-17              (1)  a division of workforce development; and
 101-18              (2)  a division of unemployment compensation.
 101-19        (b)  In addition to the divisions listed in Subsection (a),
 101-20  the executive director may establish additional divisions within
 101-21  the commission for effective administration and performance of
 101-22  commission functions.
 101-23        (c)  The executive director shall appoint the directors of
 101-24  the divisions of the commission.  The directors serve at the
 101-25  pleasure of the executive director.
 101-26           (Sections 301.010-301.020 reserved for expansion
 101-27          <Sections 202.007-202.020 reserved for expansion>
  102-1               SUBCHAPTER B.  COMMISSION ADMINISTRATION
  102-2        Sec. 301.021 <202.021>.  Donations.  The commission may
  102-3  accept a donation of services, money, or property from an
  102-4  organization listed in Section 501(c)(3) of the Internal Revenue
  102-5  Code of 1986 (26 U.S.C. Section 501(c)(3)) that the commission
  102-6  determines furthers the lawful objectives of the commission.  The
  102-7  donation must be accepted in an open meeting by a majority of the
  102-8  voting members of the commission and must be reported in the public
  102-9  records of the commission with the name of the donor and the
 102-10  purpose of the donation.
 102-11        Sec. 301.022 <202.022>.  Audit.  The financial transactions
 102-12  of the commission are subject to audit by the state auditor in
 102-13  accordance with Chapter 321, Government Code.
 102-14        Sec. 301.023 <202.023>.  Complaints.  (a)  The commission
 102-15  shall keep an information file about each complaint filed with the
 102-16  commission that relates to a service provided by the commission.
 102-17        (b)  If a written complaint is filed with the commission that
 102-18  relates to a service provided by the commission, the commission, at
 102-19  least quarterly and until final disposition of the complaint, shall
 102-20  notify the parties to the complaint of the status of the complaint.
 102-21        Sec. 301.024 <202.024>.  Official Seal; Use of Facsimiles.
 102-22  (a)  The commission has an official seal.  A court shall take
 102-23  judicial notice of the seal.
 102-24        (b)  The commission may execute, certify, authenticate, or
 102-25  sign, with a facsimile signature and seal, any instrument
 102-26  authorized under this subtitle to be issued by the commission or by
 102-27  an authorized representative of the commission, including a claim,
  103-1  statement, or audit report relating to the establishment or
  103-2  collection of delinquent contributions or penalties.
  103-3        <Sec. 202.025.  STATE ADVISORY COUNCIL; LOCAL COUNCILS.
  103-4  (a)  The commission may appoint a state advisory council composed
  103-5  of 15 persons representing employers, employees, and the public.
  103-6  Each member of the commission may appoint five persons to the
  103-7  advisory council.>
  103-8        <(b)  The advisory council shall meet regularly.>
  103-9        <(c)  As permitted by commission rule, a member of the
 103-10  advisory council is entitled to reimbursement for necessary travel
 103-11  and subsistence expenses and to a per diem allowance for attending
 103-12  meetings of the council, but is not a state employee for any
 103-13  purpose.>
 103-14        <(d)  The commission shall determine the composition and
 103-15  prescribe the duties of the advisory council.>
 103-16        <(e)  The advisory council shall prepare an annual report
 103-17  describing the advisory council's work during the preceding year
 103-18  and detailing any recommendations.>
 103-19        <(f)  The commission may appoint and pay local advisory
 103-20  councils and consultants under the same conditions as provided in
 103-21  this section for the state advisory council.>
 103-22           (Sections 301.025-301.040 reserved for expansion
 103-23          <Sections 202.026-202.040 reserved for expansion>
 103-24                  SUBCHAPTER C.  EXECUTIVE DIRECTOR;
 103-25                 AGENCY <ADMINISTRATOR AND> PERSONNEL
 103-26        Sec. 301.041 <202.041>.  EXECUTIVE DIRECTOR; AGENCY
 103-27  <ADMINISTRATOR;> PERSONNEL.  (a)  The commission shall appoint an
  104-1  executive director <agency administrator on the basis of merit> to
  104-2  administer the daily operations of the commission in compliance
  104-3  <and may prescribe any specific qualifications for the position of
  104-4  agency administrator that are necessary to comply> with federal
  104-5  law.  <The position of agency administrator is subject to the merit
  104-6  principles of Chapter 492, Acts of the 69th Legislature, Regular
  104-7  Session, 1985 (Article 6252-11g, Vernon's Texas Civil Statutes).>
  104-8        (b)  A reference in this code or another law to the "agency
  104-9  administrator" of the commission means the executive director.
 104-10        (c)  The executive director <agency administrator> may:
 104-11              (1)  appoint and prescribe the powers and duties of all
 104-12  commission staff, including officers, accountants, attorneys,
 104-13  experts, and other persons as necessary in the performance of the
 104-14  commission's duties;
 104-15              (2)  delegate authority to a person appointed under
 104-16  this section as the executive director <agency administrator>
 104-17  considers reasonable and proper for the effective administration of
 104-18  this title <subtitle>; <and>
 104-19              (3)  employ and terminate the employment of commission
 104-20  staff members; and
 104-21              (4)  bond any person that handles money or signs checks
 104-22  under this title <subtitle>.
 104-23        (d) <(c)>  The executive director <agency administrator> or a
 104-24  person designated by the executive director <agency administrator>
 104-25  shall develop a system of annual performance evaluations based on
 104-26  measurable job tasks.  All merit pay for commission employees must
 104-27  be based on the system established under this subsection.
  105-1        Sec. 301.042 <202.042>.  ACCESS TO CERTAIN CRIMINAL HISTORY
  105-2  RECORD INFORMATION<; OFFENSE; PENALTY>.  (a)  The commission may
  105-3  request <and receive criminal history record information maintained
  105-4  by the Department of Public Safety, the Federal Bureau of
  105-5  Investigation Identification Division, or another law enforcement
  105-6  agency to investigate an applicant for employment in a security
  105-7  sensitive position.>
  105-8        <(b)  The commission shall adopt a uniform method of
  105-9  obtaining criminal history information that requires the commission
 105-10  to submit to the Department of Public Safety or another law
 105-11  enforcement agency either a complete set of fingerprints or the
 105-12  complete name, driver's license number, and social security number
 105-13  of the person being investigated.  If the commission does not
 105-14  obtain relevant information from state or local law enforcement
 105-15  agencies in response to a submission under this subsection, the
 105-16  commission may submit either the fingerprints or the required
 105-17  information to the Federal Bureau of Investigation Identification
 105-18  Division.>
 105-19        <(c)  The commission may request> an applicant for a security
 105-20  sensitive position to provide either a complete set of fingerprints
 105-21  or the applicant's complete name, driver's license number, and
 105-22  social security number.  The executive director <commission> may
 105-23  deny employment in a security sensitive position to an applicant
 105-24  who fails to provide the requested fingerprints or information.
 105-25        (b) <(d)  All information received by the commission under
 105-26  this section is privileged and confidential and is for the
 105-27  exclusive use of the commission.  The information may not be
  106-1  released or otherwise disclosed to any other person except on court
  106-2  order or with the written consent of the person being investigated.>
  106-3        <(e)  After the commission hires an applicant for a security
  106-4  sensitive position, the commission shall seal the criminal history
  106-5  record information regarding the applicant and shall deliver the
  106-6  information to the custody of the agency administrator or the
  106-7  person designated by the agency administrator, who shall maintain
  106-8  the information as provided by commission rule.  The commission
  106-9  shall destroy the criminal history record information of an
 106-10  applicant who is not hired.>
 106-11        <(f)  The commission shall adopt rules governing the custody
 106-12  and use of information obtained under this section.>
 106-13        <(g)>  The executive director <commission> may use
 106-14  information obtained under this section only to evaluate an
 106-15  applicant for employment in a security sensitive position.  A
 106-16  security sensitive position must be so identified in the job
 106-17  description and in the announcement of the position.
 106-18        (c) <(h)>  In this section, "security sensitive position"
 106-19  means a position of employment that requires as an incident of the
 106-20  employment:
 106-21              (1)  the performance of duties in:
 106-22                    (A)  the automated data processing, controller,
 106-23  or fiscal department; or
 106-24                    (B)  a position designated to handle receipts or
 106-25  disbursements of cash in a local or regional office;
 106-26              (2)  access to a computer terminal, if the information
 106-27  available from the terminal is required by law to be confidential;
  107-1              (3)  access to a master key for access to the premises
  107-2  other than during regular working hours; or
  107-3              (4)  the performance of duties considered to be
  107-4  security sensitive by the state auditor or the Inspector General of
  107-5  the United States Department of Labor.
  107-6        <(i)  A person commits an offense if the person releases or
  107-7  discloses any information received under this section in violation
  107-8  of Subsection (d).  An offense under this subsection is a Class A
  107-9  misdemeanor.>
 107-10        Sec. 301.043 <202.043>.  Standards of Conduct Information.
 107-11  The executive director <commission> shall provide to the <its>
 107-12  members of the commission and employees of the commission, as often
 107-13  as necessary, information regarding their responsibilities under
 107-14  applicable laws relating to standards of conduct for state officers
 107-15  or employees.
 107-16        Sec. 301.044.  CAREER LADDER.  The executive director shall
 107-17  develop an intra-agency career ladder program for employees of the
 107-18  commission.  The program shall require the intra-agency posting of
 107-19  all nonentry-level positions concurrently with any public posting.
 107-20        Sec. 301.045.  EQUAL EMPLOYMENT OPPORTUNITY POLICIES.  (a)
 107-21  The executive director shall prepare and maintain a written policy
 107-22  statement to ensure implementation of a program of equal employment
 107-23  opportunity under which all personnel transactions are made without
 107-24  regard to race, color, disability, sex, religion, age, or national
 107-25  origin.  The policy statement must include:
 107-26              (1)  personnel policies, including policies relating to
 107-27  recruitment, evaluation, selection, appointment, training, and
  108-1  promotion of personnel that are in compliance with Chapter 21;
  108-2              (2)  a comprehensive analysis of the commission's
  108-3  workforce that meets federal and state guidelines;
  108-4              (3)  procedures by which a determination can be made of
  108-5  significant underuse in the commission's workforce of all persons
  108-6  for whom federal or state guidelines encourage a more equitable
  108-7  balance; and
  108-8              (4)  reasonable methods to appropriately address those
  108-9  areas of underuse.
 108-10        (b)  A policy statement under Subsection (a) must cover an
 108-11  annual period, be updated annually, be reviewed by the Commission
 108-12  on Human Rights for compliance with Subsection (a), and be filed
 108-13  with the governor's office.
 108-14        (c)  The governor's office shall deliver a biennial report to
 108-15  the legislature based on the information received under Subsection
 108-16  (b).  The report may be made separately or as part of other
 108-17  biennial reports to the legislature.
 108-18           (Sections 301.046-301.060 reserved for expansion
 108-19          <Sections 202.044-202.060 reserved for expansion>
 108-20              SUBCHAPTER D.  GENERAL POWERS AND DUTIES OF
 108-21                   COMMISSION AND EXECUTIVE DIRECTOR
 108-22        Sec. 301.061 <202.061>.  General Powers and Duties.  (a)  The
 108-23  commission shall <administer this subtitle and may> adopt rules as
 108-24  necessary for the administration of this title<, make expenditures,
 108-25  require reports, conduct investigations, and take other action it
 108-26  considers necessary or suitable to fulfill that duty>.
 108-27        (b)  The executive director <commission> shall:
  109-1              (1)  administer this title as provided by rules adopted
  109-2  by the commission;
  109-3              (2)  determine the <its own> organization of the agency
  109-4  and methods of procedure of the agency in accordance with this
  109-5  title; and
  109-6              (3)  make expenditures necessary for the operation of
  109-7  this title <subtitle>.
  109-8        (c)  Both the commission and the executive director may
  109-9  require reports, conduct investigations, and take other actions the
 109-10  commission or the executive director considers necessary or
 109-11  suitable to fulfill the duties imposed under this title.
 109-12        Sec. 301.062 <202.062>.  Findings.  Both the <The> commission
 109-13  and the executive director may <shall> make findings and determine
 109-14  issues under this title <subtitle> as necessary to administer this
 109-15  title <subtitle>.
 109-16        Sec. 301.063 <202.063>.  State and Federal Cooperation.
 109-17  (a)  The commission is designated as the agency of this state for
 109-18  implementation in this state of:
 109-19              (1)  the Wagner-Peyser Act (29 U.S.C. Section 49 et
 109-20  seq.); and
 109-21              (2)  the Job Training Partnership Act (29 U.S.C.
 109-22  Section 1501 et seq.).
 109-23        (b)  In administering this title <subtitle> the commission
 109-24  and executive director shall:
 109-25              (1)  cooperate with the secretary under the Social
 109-26  Security Act (42 U.S.C.  Section 301 et seq.) to the fullest extent
 109-27  consistent with this title <subtitle>;
  110-1              (2)  make reports in the form and containing
  110-2  information required by the secretary and comply with provisions
  110-3  the secretary finds necessary to ensure that the reports are
  110-4  correct and verified;
  110-5              (3)  comply with the regulations prescribed by the
  110-6  secretary governing the expenditures of funds allotted and paid to
  110-7  the state under Title III of the Social Security Act (42 U.S.C.
  110-8  Section 501 et seq.) to assist in the administration of this title
  110-9  <subtitle>; and
 110-10              (4)  cooperate with any official or agency of the
 110-11  United States having powers or duties under the Wagner-Peyser Act
 110-12  (29 U.S.C. Section 49 et seq.) and take all actions necessary to
 110-13  secure to this state the benefits of that Act and necessary to
 110-14  perform the commission's duties under Chapter 307 <Subchapter F>.
 110-15        (c)  The commission may provide reasonable cooperation to
 110-16  each agency of the United States charged with the administration of
 110-17  any unemployment insurance law.
 110-18        (d)  On request, the commission shall furnish to an agency of
 110-19  the United States responsible for the administration of public
 110-20  works or assistance through public employment the name, address,
 110-21  ordinary occupation, and employment status of each recipient of
 110-22  benefits and shall inform the agency of the recipient's right to
 110-23  further benefits under Subtitle A <this subtitle>.
 110-24        (e)  In this section, "secretary" means the United States
 110-25  secretary of labor.
 110-26        Sec. 301.064 <202.064>.  Interpreter Services; Bilingual
 110-27  Forms.  (a)  The executive director <commission> shall provide
  111-1  language interpreters for agency programs through a comprehensive
  111-2  language services program for persons whose primary language is
  111-3  Spanish and may provide language interpreters through the program
  111-4  for agency programs for persons whose primary language is other
  111-5  than Spanish or English.
  111-6        (b)  The language services program must provide services,
  111-7  including translation services, both to employers and to employees
  111-8  or prospective employees.
  111-9        (c)  The executive director <commission> shall print
 111-10  essential agency forms and instructional information in both
 111-11  English and Spanish.  A form shall be written in Spanish only when
 111-12  revised or when new or additional forms are printed or prepared.
 111-13        Sec. 301.065 <202.065>.  Annual Report.  (a)  As soon as
 111-14  practicable after the close of each fiscal year, the commission
 111-15  shall submit to the governor and the legislature a report on the
 111-16  administration and operation of the commission's activities under
 111-17  this title <subtitle> during the preceding fiscal year, including
 111-18  each recommendation of the commission for amendments to this title
 111-19  <subtitle>.
 111-20        (b)  The annual report must include:
 111-21              (1)  a balance sheet of the money in the compensation
 111-22  fund;
 111-23              (2)  <the annual report prepared by the state advisory
 111-24  council under Section 202.025(e);>
 111-25              <(3)>  the commission's long-term and short-term
 111-26  objectives; and
 111-27              (3) <(4)>  any other information requested by the
  112-1  legislature or the Legislative Budget Board.
  112-2        Sec. 301.066 <202.066>.  Publications.  (a)  The executive
  112-3  director <commission> shall print:
  112-4              (1)  the text of Subtitle A <this subtitle>;
  112-5              (2)  the commission's rules; and
  112-6              (3)  the commission's annual report to the governor and
  112-7  the legislature.
  112-8        (b)  The executive director <commission> shall prepare
  112-9  information describing the functions of the commission and the
 112-10  commission's procedures by which complaints are filed with and
 112-11  resolved by the commission.
 112-12        (c)  The executive director <commission> shall make the
 112-13  information required to be printed or prepared under this section
 112-14  and any other material that the executive director <commission>
 112-15  determines to be relevant and suitable for distribution available
 112-16  to the public and appropriate state agencies.
 112-17           (Sections 301.067-301.070 reserved for expansion
 112-18          <Sections 202.067-202.070 reserved for expansion>
 112-19           SUBCHAPTER E.  INVESTIGATIVE AND SUBPOENA POWERS
 112-20        Sec. 301.071 <202.071>.  Investigative and Subpoena Powers.
 112-21  (a)  In discharging duties imposed under Subtitle A <this
 112-22  subtitle>, an appeal tribunal established under Section 212.101, a
 112-23  member of the commission, or a representative authorized by the
 112-24  commission may:
 112-25              (1)  administer oaths;
 112-26              (2)  take depositions;
 112-27              (3)  certify to official acts; and
  113-1              (4)  issue subpoenas to compel the attendance of
  113-2  witnesses and the production of books, papers, correspondence,
  113-3  memoranda, and other records considered necessary as evidence in
  113-4  connection with a disputed claim or the administration of Subtitle
  113-5  A <this subtitle>.
  113-6        (b)  The commission's authority to conduct an investigation,
  113-7  assemble information, or require the submission of documentary or
  113-8  oral testimony is limited to the power necessary to properly
  113-9  administer Subtitle A <this subtitle>.
 113-10        (c)  Notwithstanding Section 154.004, Local Government Code,
 113-11  or any other law, the executive director <commission> shall pay the
 113-12  fee of a sheriff or constable who serves a subpoena under this
 113-13  section.  The fee shall be paid from the commission's
 113-14  administrative funds, and the comptroller shall issue a warrant for
 113-15  the fee as directed by the executive director <commission>.
 113-16        Sec. 301.072 <202.072>.  Enforcement of Subpoena; Offense;
 113-17  Penalties.  (a)  If a person is guilty of contumacy or refuses to
 113-18  obey a subpoena issued by a member of the commission or an
 113-19  authorized representative of the commission, a county or district
 113-20  court, on application by the commission or its authorized
 113-21  representative, may order the person to appear before a member of
 113-22  the commission, the commission, or its authorized representative to
 113-23  produce evidence or give testimony regarding the matter under
 113-24  investigation or in question.  Only a court within the jurisdiction
 113-25  where the commission conducts the inquiry or where the person is
 113-26  found, resides, or transacts business may issue the order.
 113-27        (b)  Failure to obey a court order issued under Subsection
  114-1  (a) is punishable as contempt.
  114-2        (c)  A person commits an offense if the person, without just
  114-3  cause, does not obey a subpoena of the commission.  An offense
  114-4  under this subsection is punishable by a fine of not less than
  114-5  $200, by confinement for not more than 60 days, or by both fine and
  114-6  confinement.  Each day of violation constitutes a separate offense.
  114-7        Sec. 301.073 <202.073>.  Self-Incrimination.  (a)  In any
  114-8  cause or proceeding before the commission, a person is not excused
  114-9  from attending and testifying, from producing books, papers,
 114-10  correspondence, memoranda, and other records, or from obeying a
 114-11  subpoena of the commission, a member of the commission, or a
 114-12  representative of the commission on the ground that the testimony
 114-13  or evidence, documentary or otherwise, may tend to incriminate the
 114-14  person or subject the person to a penalty or forfeiture.
 114-15        (b)  A person may not be prosecuted or subjected to penalty
 114-16  or forfeiture for or because of a transaction or thing for which
 114-17  the person is compelled to testify or produce evidence after having
 114-18  claimed a privilege against self-incrimination except for perjury.
 114-19        Sec. 301.074 <202.074>.  Defamation.  An oral or written
 114-20  statement made to the commission or to an employee of the
 114-21  commission in connection with the discharge of the commission's or
 114-22  the employee's duties under Subtitle A <this subtitle> may not be
 114-23  the basis for an action for defamation of character.
 114-24           (Sections 301.075-301.080 reserved for expansion
 114-25          <Sections 202.075-202.080 reserved for expansion>
 114-26                      SUBCHAPTER F <G>.  RECORDS
 114-27        Sec. 301.081 <202.091>.  Employee Records of Employing Unit;
  115-1  Offense; Penalty.  (a)  Each employing unit shall keep employment
  115-2  records containing information as prescribed by the commission and
  115-3  as necessary for the proper administration of this title
  115-4  <subtitle>.  The records are open to inspection and may be copied
  115-5  by the commission or an authorized representative of the commission
  115-6  at any reasonable time and as often as necessary.
  115-7        (b)  The commission may require from an employing unit sworn
  115-8  or unsworn reports regarding persons employed by the employing unit
  115-9  as necessary for the effective administration of this title
 115-10  <subtitle>.
 115-11        (c)  Employment information thus obtained or otherwise
 115-12  secured may not be published and is not open to public inspection,
 115-13  other than to a public employee in the performance of public
 115-14  duties, except as the commission considers necessary for the proper
 115-15  administration of this title <subtitle>.
 115-16        (d)  A person commits an offense if the person is an employee
 115-17  or member of the commission who violates any provision of this
 115-18  section.  An offense under this subsection is punishable by a fine
 115-19  of not less than $20 nor more than $200, confinement in jail for
 115-20  not more than 90 days, or both fine and confinement.
 115-21        Sec. 301.082 <202.092>.  Copies of Records.  (a)  The
 115-22  executive director <commission> may furnish a photostatic or
 115-23  certified copy of a record in the commission's <its> possession to
 115-24  a person entitled to receive a copy of the record on application by
 115-25  the person.
 115-26        (b)  The executive director <commission> shall charge a
 115-27  reasonable fee in an amount set by the commission for a copy of a
  116-1  record furnished under this section.
  116-2        Sec. 301.083 <202.093>.  Access to Records by Railroad
  116-3  Retirement Board.  (a)  The executive director <commission> may
  116-4  make state records relating to the administration of Subtitle A
  116-5  <this subtitle> available to the Railroad Retirement Board.
  116-6        (b)  The executive director <commission> may furnish the
  116-7  Railroad Retirement Board with copies of the records requested by
  116-8  the board at the board's expense.
  116-9        Sec. 301.084 <202.094>.  DESTRUCTION OF RECORDS.  The
 116-10  executive director <commission> may destroy any of the <its>
 116-11  records of the agency under safeguards that protect the
 116-12  confidential nature of the records if the executive director
 116-13  <commission>:
 116-14              (1)  determines that the records no longer serve a
 116-15  legal, administrative, or other useful purpose; or
 116-16              (2)  has made an authentic reproduction of the records
 116-17  to be destroyed.
 116-18           (Sections 301.085-301.090 reserved for expansion
 116-19                 SUBCHAPTER G.  LEGISLATIVE OVERSIGHT
 116-20        Sec. 301.091.  DEFINITION; SUNSET DATE.  (a)  In this
 116-21  subchapter, "committee" means the workforce development legislative
 116-22  oversight committee.
 116-23        (b)  The committee is subject to Chapter 325, Government Code
 116-24  (Texas Sunset Act).  Unless continued in existence as provided by
 116-25  that chapter, the committee is abolished September 1, 1999.
 116-26        Sec. 301.092.  COMPOSITION OF COMMITTEE; PRESIDING OFFICER.
 116-27  (a)  The committee is composed of:
  117-1              (1)  two members of the senate and one public member,
  117-2  appointed by the lieutenant governor; and
  117-3              (2)  two members of the house of representatives and
  117-4  one public member, appointed by the speaker of the house of
  117-5  representatives.
  117-6        (b)  A member of the committee serves at the pleasure of the
  117-7  appointing official.
  117-8        (c)  The lieutenant governor and speaker of the house of
  117-9  representatives shall appoint the presiding officer of the
 117-10  committee on an alternating basis.  The presiding officer shall
 117-11  serve a two-year term expiring February 1 of each odd-numbered
 117-12  year.
 117-13        Sec. 301.093.  COMMITTEE POWERS AND DUTIES.  (a)  The
 117-14  committee shall:
 117-15              (1)  meet at the call of the presiding officer;
 117-16              (2)  receive information about rules proposed or
 117-17  adopted by the commission; and
 117-18              (3)  review specific recommendations for legislation
 117-19  proposed by the commission.
 117-20        (b)  The committee shall monitor the implementation and
 117-21  efficiency of the workforce development system of this state.
 117-22        (c)  The committee may request reports and other information
 117-23  from the chair and the executive director relating to the operation
 117-24  of the commission.
 117-25        Sec. 301.094.  REPORT.  (a)  The committee shall report to
 117-26  the governor, lieutenant governor, and speaker of the house of
 117-27  representatives not later than December 31 of each even-numbered
  118-1  year.
  118-2        (b)  The report must include:
  118-3              (1)  identification of significant problems in the
  118-4  workforce development system, with recommendations for action by
  118-5  the chair, the executive director, and the commission;
  118-6              (2)  the status of the effectiveness of the workforce
  118-7  development system to provide necessary services to workers and
  118-8  employers of this state, with recommendations for any necessary
  118-9  research; and
 118-10              (3)  recommendations for legislative action.
 118-11        SECTION 11.03.  Subtitle B, Title 4, Labor Code, is amended
 118-12  by adding new Chapters 302 and 303 to read as follows:
 118-13            CHAPTER 302.  DIVISION OF WORKFORCE DEVELOPMENT
 118-14                   SUBCHAPTER A.  GENERAL PROVISIONS
 118-15        Sec. 302.001.  DEFINITIONS.  In this chapter:
 118-16              (1)  "Director" means the director of the division.
 118-17              (2)  "Division" means the division of workforce
 118-18  development of the commission.
 118-19        Sec. 302.002.  GENERAL WORKFORCE DEVELOPMENT POWERS AND
 118-20  DUTIES OF COMMISSION AND EXECUTIVE DIRECTOR.  (a)  The executive
 118-21  director shall:
 118-22              (1)  to the extent feasible under federal law,
 118-23  consolidate the administrative and programmatic functions of the
 118-24  programs under the authority of the commission to achieve efficient
 118-25  and effective delivery of services;
 118-26              (2)  administer each program and implement
 118-27  corresponding federal and state legislation consolidated under the
  119-1  authority of the commission under this chapter and other applicable
  119-2  state law;
  119-3              (3)  determine the organization and methods of
  119-4  procedure of the division in accordance with applicable state and
  119-5  federal legislation;
  119-6              (4)  appoint and prescribe the duties of all officers,
  119-7  administrators, accountants, attorneys, experts, and other
  119-8  employees as necessary in the performance of the division's duties;
  119-9              (5)  delegate authority to persons appointed under this
 119-10  section as the executive director considers reasonable and proper
 119-11  for the effective administration of the division;
 119-12              (6)  bond any person who handles money or signs checks
 119-13  for the division;
 119-14              (7)  implement workforce training and services policies
 119-15  and programs, consistent with recommendations from the council and
 119-16  as approved by the governor;
 119-17              (8)  serve as an advocate at the state and federal
 119-18  levels for local workforce development boards;
 119-19              (9)  contract with local workforce development boards
 119-20  for program planning and service delivery;
 119-21              (10)  provide training and professional development
 119-22  services for division staff, local workforce development boards,
 119-23  and the staff of those boards;
 119-24              (11)  support research and demonstration projects
 119-25  designed to develop new programs and approaches to service
 119-26  delivery;
 119-27              (12)  provide technical assistance and support to local
  120-1  workforce development boards;
  120-2              (13)  prepare an annual agency performance report for
  120-3  submission to the governor, the legislature, the commission, and
  120-4  the council;
  120-5              (14)  design and administer a statewide comprehensive
  120-6  labor market information system;
  120-7              (15)  serve as the chair of the State Occupational
  120-8  Information Coordinating Committee; and
  120-9              (16)  perform other functions and duties as may be
 120-10  required by law or assigned by the commission.
 120-11        (b)  The executive director may make expenditures, enter into
 120-12  contracts with public, private, and nonprofit organizations,
 120-13  require reports, conduct investigations, and take other action the
 120-14  executive director or commission considers necessary or suitable to
 120-15  fulfill the division's administrative duties.
 120-16        (c)  The executive director may enter interagency contracts
 120-17  and memoranda of understanding with other state agencies for the
 120-18  performance of administrative functions of the agency.
 120-19        (d)  The commission shall adopt rules in accordance with
 120-20  Chapter 2001, Government Code, as necessary for the proper
 120-21  administration of the division.
 120-22        (e)  The executive director may obligate funds from the
 120-23  skills development fund in a manner consistent with the rules
 120-24  adopted by the commission for that program.  The executive director
 120-25  shall report to the governor, the legislature, the commission, and
 120-26  the council on a quarterly basis regarding actions taken under this
 120-27  subsection.
  121-1           (Sections 302.003-302.020 reserved for expansion
  121-2              SUBCHAPTER B.  JURISDICTION OF DIVISION OF
  121-3                         WORKFORCE DEVELOPMENT
  121-4        Sec. 302.021.  CONSOLIDATION OF WORKFORCE DEVELOPMENT
  121-5  PROGRAMS.  (a)  The following job-training, employment, and
  121-6  employment-related educational programs and functions are
  121-7  consolidated under the authority of the division:
  121-8              (1)  adult education programs under Section 11.18,
  121-9  Education Code;
 121-10              (2)  proprietary school programs under Chapter 32,
 121-11  Education Code;
 121-12              (3)  apprenticeship programs under Chapter 33,
 121-13  Education Code;
 121-14              (4)  postsecondary vocational and technical
 121-15  job-training programs that are not a part of approved courses or
 121-16  programs that lead to licensing, certification, or an associate
 121-17  degree under Chapters 61, 108, 130, and 135, Education Code, and
 121-18  Subchapter E, Chapter 88, Education Code;
 121-19              (5)  employment programs under Chapter 31, Human
 121-20  Resources Code;
 121-21              (6)  the senior citizens employment program under
 121-22  Chapter 101, Human Resources Code;
 121-23              (7)  the work and family policies program under Chapter
 121-24  81;
 121-25              (8)  job-training programs funded under the Job
 121-26  Training Partnership Act  (29 U.S.C. Section 1501 et seq.);
 121-27              (9)  the job counseling program for displaced
  122-1  homemakers under Chapter 304;
  122-2              (10)  the Communities in Schools program under Chapter
  122-3  305;
  122-4              (11)  the reintegration of offenders program under
  122-5  Chapter 306;
  122-6              (12)  the inmate employment counseling program under
  122-7  Section 499.051(f), Government Code;
  122-8              (13)  the continuity of care program under Section
  122-9  501.095, Government Code;
 122-10              (14)  a literacy program from funds available to the
 122-11  state under Section 481.026, Government Code;
 122-12              (15)  the employment service;
 122-13              (16)  the community service program under the National
 122-14  and Community Service Act of 1990 (42 U.S.C. Section 12501 et
 122-15  seq.);
 122-16              (17)  the trade adjustment assistance program under
 122-17  Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
 122-18  seq.);
 122-19              (18)  the Job Opportunities and Basic Skills program
 122-20  under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section
 122-21  682);
 122-22              (19)  the food stamp employment and training program
 122-23  authorized under 7 U.S.C. Section 2015(d); and
 122-24              (20)  the functions of the State Occupational
 122-25  Information Coordinating Committee.
 122-26        (b)  In addition to the programs consolidated under the
 122-27  authority of the division under Subsection (a), the division shall
  123-1  administer:
  123-2              (1)  programs in this state to enhance the employment
  123-3  opportunities of veterans of the armed services of the United
  123-4  States, including the employment program funded under Chapters 41
  123-5  and 42, Title 38, United States Code;
  123-6              (2)  child-care services provided under Chapter 44,
  123-7  Human Resources Code; and
  123-8              (3)  programs established in this state through federal
  123-9  funding to conduct full service career development centers and
 123-10  school-to-work transition services.
 123-11        (c)  To the extent permitted under federal law, the division
 123-12  shall administer the programs funded through the education
 123-13  coordination funds under Section 123, Job Training Partnership Act
 123-14  (29 U.S.C. Section 1533).
 123-15        Sec. 302.022.  CLIENT ACCESSIBILITY.  The director shall
 123-16  develop a uniform, statewide client application and enrollment
 123-17  process to determine an applicant's eligibility for workforce
 123-18  training and services funded through the division.
 123-19        Sec. 302.023.  DELEGATION OF FUNCTIONS.  The executive
 123-20  director shall delegate all or part of the administration of a
 123-21  program listed under Section 302.021 that is eligible for block
 123-22  grant funding under Section 302.062 to a local workforce
 123-23  development board in an area in which a board has been certified
 123-24  and a local plan approved by the governor, or to another
 123-25  appropriate state or local entity in an area in which a local
 123-26  workforce development board has not been certified and a local plan
 123-27  approved by the governor.
  124-1           (Sections 302.024-302.040 reserved for expansion
  124-2              SUBCHAPTER C.  STATE-LOCAL PLANNING; LOCAL
  124-3                     WORKFORCE DEVELOPMENT BOARDS
  124-4        Sec. 302.041.  STATE-LOCAL PLANNING PROCESS.  The director
  124-5  shall design and implement a state-local planning process for
  124-6  workforce training and services provided through the programs under
  124-7  the jurisdiction of the division.
  124-8        Sec. 302.042.  REVIEW OF LOCAL PLANS; RECOMMENDATIONS.  The
  124-9  commission shall review the local workforce training and services
 124-10  plans developed under Section 4.05, Workforce and Economic
 124-11  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 124-12  Statutes), and shall make recommendations to the council regarding
 124-13  the implementation of those plans.
 124-14        Sec. 302.043.  TRAINING FOR LOCAL WORKFORCE DEVELOPMENT BOARD
 124-15  MEMBERS.  (a)  The division shall provide management and board
 124-16  development training for all members of local workforce development
 124-17  boards that includes information regarding the importance of
 124-18  high-quality workforces to the economic prosperity of their
 124-19  communities and encourages board members to be advocates in their
 124-20  communities for effective and efficient workforce development
 124-21  programs.  If a member of a local workforce development board does
 124-22  not receive training under this section before the 91st day after
 124-23  the date on which the member begins service on the board, the
 124-24  person is ineligible to continue serving on the board unless the
 124-25  training required under this subsection was requested by the member
 124-26  but not provided by the division.
 124-27        (b)  Training may be provided directly by the division or by
  125-1  a third party that has demonstrated experience in providing
  125-2  training to local workforce development or similar boards.
  125-3           (Sections 302.044-302.060 reserved for expansion
  125-4        SUBCHAPTER D.  ALLOCATION OF FUNDS; BLOCK GRANT PROGRAM
  125-5        Sec. 302.061.  ADMINISTRATION FUNDING.  Unless superseded by
  125-6  federal law, the commission may use an amount not to exceed 20
  125-7  percent of the amount of funds available to the commission for
  125-8  workforce training and services to implement state-level
  125-9  responsibilities, including administration, research and planning,
 125-10  system design and development, and training and technical
 125-11  assistance.
 125-12        Sec. 302.062.  BLOCK GRANTS TO LOCAL WORKFORCE DEVELOPMENT
 125-13  AREAS.  (a)  Effective July 1, 1996, the commission shall provide
 125-14  to the local workforce development areas in which local workforce
 125-15  development boards have been certified and local plans approved by
 125-16  the governor, through a block grant process, funds available to the
 125-17  commission for workforce training and employment services, unless
 125-18  superseded by federal law.  Administrative costs under this
 125-19  subsection may not exceed five percent of the total amount of funds
 125-20  available to the commission for block grants for workforce training
 125-21  and services.
 125-22        (b)  In the case of funds that are allocated to this state or
 125-23  regions of this state through the application of established
 125-24  formulas, the commission shall allocate amounts across the state
 125-25  using the same formula that was used to provide the funds to the
 125-26  state or that region.
 125-27        (c)  In the case of funds that are not allocated by formula
  126-1  to this state or regions of this state, the commission shall
  126-2  develop a need-based formula that will equitably allocate funds
  126-3  among local workforce development areas throughout this state.
  126-4        (d)  Contingent on the availability of funds, in any state
  126-5  fiscal biennium, the commission may not allocate to a local
  126-6  workforce development area less than 90 percent or more than 125
  126-7  percent of the amount received by that area during the preceding
  126-8  state fiscal biennium.
  126-9        (e)  In each area of the state not yet designated as a local
 126-10  workforce development area or that has been so designated but in
 126-11  which a local workforce development board has not been certified
 126-12  and a local plan approved by the governor, the executive director
 126-13  shall:
 126-14              (1)  provide workforce training and services in that
 126-15  area to the extent allowed by federal law; and
 126-16              (2)  specify an entity, which may be the commission,
 126-17  for the performance of employment services in that area.
 126-18        (f)  At least 80 percent of the funds available to the
 126-19  commission for workforce training and services in an area shall be
 126-20  provided to the local workforce development board under Subsection
 126-21  (a) or, in an area in which a local workforce development board has
 126-22  not been certified and a local plan approved by the governor, to
 126-23  the entity specified by the executive director under Subsection
 126-24  (e).  If a local workforce development board has been certified and
 126-25  a local plan approved by the governor, the funds shall be provided
 126-26  through the block grant process described by this section.  Unless
 126-27  superseded by federal law, total administrative costs for local
  127-1  workforce training and services may not exceed 15 percent of the
  127-2  funds allocated under this subsection, whether the training and
  127-3  services are provided through a local workforce development board
  127-4  or through the commission or other entity specified under
  127-5  Subsection (e).
  127-6        (g)  Block grant funding under this section does not apply
  127-7  to:
  127-8              (1)  the work and family policies program under Chapter
  127-9  81;
 127-10              (2)  a program under the skills development fund
 127-11  created under Chapter 303;
 127-12              (3)  the job counseling program for displaced
 127-13  homemakers under Chapter 304;
 127-14              (4)  the Communities in Schools program under Chapter
 127-15  305;
 127-16              (5)  the reintegration of offenders program under
 127-17  Chapter 306;
 127-18              (6)  apprenticeship programs under Chapter 33,
 127-19  Education Code;
 127-20              (7)  the inmate employment counseling program under
 127-21  Section 499.051(f), Government Code;
 127-22              (8)  the continuity of care program under Section
 127-23  501.095, Government Code;
 127-24              (9)  employment programs under Chapter 31, Human
 127-25  Resources Code;
 127-26              (10)  the senior citizens employment program under
 127-27  Chapter 101, Human Resources Code;
  128-1              (11)  the programs described by Section 302.021(b)(3);
  128-2              (12)  the community service program under the National
  128-3  and Community Service Act of 1990 (42 U.S.C. Section 12501 et
  128-4  seq.);
  128-5              (13)  the trade adjustment assistance program under
  128-6  Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
  128-7  seq.);
  128-8              (14)  the programs to enhance the employment
  128-9  opportunities of veterans; and
 128-10              (15)  the functions of the State Occupational
 128-11  Information Coordinating Committee.
 128-12        Sec. 302.063.  WAIVERS.  The commission shall develop
 128-13  objective criteria for the granting of waivers allowed under this
 128-14  chapter.
 128-15                 CHAPTER 303.  SKILLS DEVELOPMENT FUND
 128-16        Sec. 303.001.  PURPOSE; DEFINITION.  (a)  The purpose of this
 128-17  chapter is to remove administrative barriers that impede the
 128-18  response of public community and technical colleges to industry and
 128-19  workforce training needs and to develop incentives for public
 128-20  community and technical colleges to provide customized assessment
 128-21  and training in a timely and efficient manner.
 128-22        (b)  For purposes of this chapter, "assessment" means the
 128-23  evaluation of an employer's workforce needs and requirements.
 128-24        Sec. 303.002.  WAIVER.  (a)  The commission may review and
 128-25  recommend to the legislature the waiver of any requirements set
 128-26  forth in Title 3, Education Code, as they may apply to public
 128-27  community and technical colleges, that impede the ability of such a
  129-1  college to develop in a timely manner customized training for
  129-2  demand occupations in particular industries, including statutes or
  129-3  regulations limiting costs that may be recovered by a public
  129-4  community or technical college from state funds.
  129-5        (b)  A public community or technical college may recover
  129-6  customized assessment and training costs incurred by the college
  129-7  if:
  129-8              (1)  there is an actual or projected labor shortage in
  129-9  the occupation in which training is provided that is not being met
 129-10  by an existing institution or program in the area; and
 129-11              (2)  the wages at the time of job placement for
 129-12  individuals who successfully complete customized training at the
 129-13  public  community or technical college are equal to the prevailing
 129-14  wage for that occupation in the local labor market area.
 129-15        Sec. 303.003.  SKILLS DEVELOPMENT FUND.  (a)  To achieve the
 129-16  purposes of this chapter, the skills development fund is created
 129-17  from money in the general revenue fund.
 129-18        (b)  The skills development fund may be used by public
 129-19  community and technical colleges as start-up or emergency funds for
 129-20  the following job-training purposes:
 129-21              (1)  developing customized training programs for
 129-22  businesses and trade unions; and
 129-23              (2)  sponsoring small and medium-sized business
 129-24  networks and consortiums.
 129-25        (c)  Money from the skills development fund may not be used
 129-26  to pay the training costs and other related costs of an employer
 129-27  who relocates the employer's worksite from one location in this
  130-1  state to another in-state location.
  130-2        (d)  The executive director, or a person appointed by the
  130-3  executive director who is knowledgeable in the administration of
  130-4  grants, is responsible for the distribution of money from the
  130-5  skills development fund.
  130-6        (e)  It is the intent of the legislature that, to the
  130-7  greatest extent practicable, money from the skills development fund
  130-8  shall be spent in all areas of this state.
  130-9        Sec. 303.004.  FUND REVIEW.  The Texas Higher Education
 130-10  Coordinating Board shall review all customized training programs
 130-11  biennially to verify that state funds are being used appropriately
 130-12  by public community and technical colleges under this chapter.
 130-13        SECTION 11.04.  Chapter 302, Labor Code, is redesignated as
 130-14  Chapter 304, Labor Code, and amended to read as follows:
 130-15                    CHAPTER 304 <302>.  EMPLOYMENT
 130-16                  COUNSELING FOR DISPLACED HOMEMAKERS
 130-17        Sec. 304.001.  DEFINITION <302.001.  DEFINITIONS>.  In this
 130-18  chapter, "displaced<:>
 130-19              <(1)  "Commission" means the Texas Employment
 130-20  Commission.>
 130-21              <(2)  "Displaced> homemaker" means a person who:
 130-22              (1) <(A)>  has worked without pay as a homemaker for
 130-23  the person's family;
 130-24              (2) <(B)>  is not gainfully employed;
 130-25              (3) <(C)>  has had, or would have, difficulty in
 130-26  obtaining employment; and
 130-27              (4) <(D)>  has depended on:
  131-1                    (A) <(i)>  the income of a family member for
  131-2  financial support and has lost that income; or
  131-3                    (B) <(ii)>  government assistance as the parent
  131-4  of dependent children and is no longer eligible for that
  131-5  assistance.
  131-6        Sec. 304.002 <302.002>.  JOB COUNSELING PROGRAM.  (a)  The
  131-7  commission, through a special assistance job counseling program,
  131-8  shall:
  131-9              (1)  provide counseling for displaced homemakers;
 131-10              (2)  assist displaced homemakers in obtaining training
 131-11  and education; and
 131-12              (3)  place displaced homemakers in suitable employment.
 131-13        (b)  The counseling must:
 131-14              (1)  consider and build on the skills and experiences
 131-15  of the homemaker; and
 131-16              (2)  prepare the person, through employment counseling,
 131-17  to reenter the paid work force and develop and improve job skills.
 131-18        (c)  The commission shall design the program specifically for
 131-19  persons reentering the paid work force after a number of years as
 131-20  homemakers to enable them to assume or resume a valuable role in
 131-21  the paid work force commensurate with the homemakers' talents and
 131-22  abilities.
 131-23        (d)  The commission may not charge a fee for participation in
 131-24  the program by a displaced homemaker.
 131-25        Sec. 304.003 <302.003>.  PERSONNEL; OFFICE.  The commission
 131-26  shall use its personnel, services, facilities, and equipment to
 131-27  operate the job counseling program.
  132-1        Sec. 304.004 <302.004>.  COOPERATION BY STATE AGENCIES AND
  132-2  POLITICAL SUBDIVISIONS.  State agencies and political subdivisions
  132-3  of the state shall cooperate with the commission in obtaining
  132-4  suitable employment for displaced homemakers counseled by the
  132-5  commission.
  132-6        SECTION 11.05.  Chapter 216, Labor Code, is moved from
  132-7  Subtitle A, Title 4, Labor Code, to Subtitle B of that title,
  132-8  redesignated as Chapter 305, Labor Code, and amended to read as
  132-9  follows:
 132-10          CHAPTER 305 <216>.  COMMUNITIES IN SCHOOLS PROGRAM
 132-11                   SUBCHAPTER A.  GENERAL PROVISIONS
 132-12        Sec. 305.001 <216.001>.  DEFINITIONS.  In this chapter:
 132-13              (1)  "Agency" means the Central Education Agency.
 132-14              (2)  "Communities in Schools program" means an
 132-15  exemplary youth dropout prevention program.
 132-16        Sec. 305.002 <216.002>.  STATEWIDE OPERATION OF PROGRAM.  It
 132-17  is the intent of the legislature that the Communities in Schools
 132-18  program operate throughout this state.
 132-19              (Sections 305.003-305.010 <216.003-216.010>
 132-20                        reserved for expansion)
 132-21                  SUBCHAPTER B.  OPERATION OF PROGRAM
 132-22        Sec. 305.011 <216.011>.  STATE COORDINATOR.  The executive
 132-23  director <administrator of the commission> shall appoint a state
 132-24  coordinator for the Communities in Schools program.
 132-25        Sec. 305.012 <216.012>.  DUTIES OF STATE COORDINATOR.  The
 132-26  state coordinator shall:
 132-27              (1)  coordinate the efforts of social service
  133-1  organizations and agencies and of public school personnel to
  133-2  provide services to students who are at risk of dropping out of
  133-3  school or engaging in delinquent conduct;
  133-4              (2)  set standards for the Communities in Schools
  133-5  program;
  133-6              (3)  obtain information from each participating school
  133-7  district to determine necessary program changes;
  133-8              (4)  promote and market the program in communities in
  133-9  which the program is not established;
 133-10              (5)  help communities that want to participate in the
 133-11  program establish a local funding base; and
 133-12              (6)  train a program director for each participating
 133-13  community.
 133-14        Sec. 305.013 <216.013>.  AGENCY COOPERATION; MEMORANDUM OF
 133-15  UNDERSTANDING.  (a)  The agency and the commission shall work
 133-16  together to maximize the effectiveness of the Communities in
 133-17  Schools program.
 133-18        (b)  The agency and the commission shall develop and mutually
 133-19  agree to a memorandum of understanding to clearly define the
 133-20  responsibilities of each agency under this chapter.  The memorandum
 133-21  must address:
 133-22              (1)  the role of the commission in encouraging local
 133-23  business to participate in local Communities in Schools programs;
 133-24              (2)  the role of the agency in obtaining information
 133-25  from participating school districts;
 133-26              (3)  the use of federal or state funds available to the
 133-27  agency or the commission for programs of this nature; and
  134-1              (4)  other areas identified by the agency and the
  134-2  commission that require clarification.
  134-3        (c)  The agency and the commission shall adopt rules to
  134-4  implement the memorandum and shall update the memorandum and rules
  134-5  annually.
  134-6              (Sections 305.014-305.020 <216.014-216.020>
  134-7                        reserved for expansion)
  134-8      SUBCHAPTER C.  PARTICIPATION IN PROGRAM BY CERTAIN SCHOOLS
  134-9        Sec. 305.021 <216.021>.  DESIGNATION OF PARTICIPATING
 134-10  SCHOOLS.  (a)  The state coordinator, in cooperation with the
 134-11  program directors in the counties or cities in which a Communities
 134-12  in Schools program is located <was established on September 1,
 134-13  1991>, shall designate for participation <not more than 32
 134-14  elementary schools and 76 secondary schools in those counties to
 134-15  participate> in the program in the first year of the 1996-97 state
 134-16  fiscal biennium the campuses that were participating in the program
 134-17  as of August 31, 1995, for continuation in the program, and
 134-18  additional campuses if the coordinator determines that funding is
 134-19  available for participation in the program by additional campuses.
 134-20  This subsection expires August 31, 1996.
 134-21        (b)  To determine participation in the second year of the
 134-22  1996-97 state fiscal biennium and subsequently, the <The> state
 134-23  coordinator<, in cooperation with the program directors in four
 134-24  additional counties designated by the state coordinator,> shall
 134-25  implement a formula for the funding of Communities in Schools
 134-26  campuses that reduces, over a five-year period beginning September
 134-27  1, 1996, the funds annually contributed by the state to an amount
  135-1  not less than 50 percent of the amount contributed by the state for
  135-2  funding of the program in the first year of the 1996-97 state
  135-3  fiscal biennium <designate additional elementary and secondary
  135-4  schools to participate in the Communities in Schools program>.  The
  135-5  formula must consider the financial resources of individual
  135-6  communities and school districts.  Savings accomplished through the
  135-7  implementation of the formula may be used to extend participation
  135-8  in the program to additional campuses in counties or cities that
  135-9  are participating in the program and to campuses in counties and
 135-10  cities that have not previously participated in the program.
 135-11        (c)  Each local Communities in Schools program shall develop
 135-12  a five-year funding plan for campuses located in the county or city
 135-13  that participate in the program under which levels of service to
 135-14  those campuses are maintained as the proportion of state funding is
 135-15  reduced <The designation of secondary schools to participate in the
 135-16  Communities in Schools program must be distributed among high
 135-17  schools and junior high or middle schools>.
 135-18        (d)  A Communities in Schools program may accept federal
 135-19  funds, state funds, private contributions, grants, and public and
 135-20  school district funds to support a campus participating in the
 135-21  program.
 135-22        Sec. 305.022 <216.022>.  PARTICIPATION IN PROGRAM.  An
 135-23  elementary or secondary school designated under Section 305.021
 135-24  <216.021> shall participate in the Communities in Schools program
 135-25  if the number of students enrolled in the school who are at risk of
 135-26  dropping out of school is equal to at least 10 percent of the
 135-27  number of students in average daily attendance at the school, as
  136-1  determined by the agency.
  136-2              (Sections 305.023-305.030 <216.023-216.030>
  136-3                        reserved for expansion)
  136-4                    SUBCHAPTER D.  PROGRAM FUNDING
  136-5        Sec. 305.031 <216.031>.  DONATIONS TO PROGRAM.  (a)  The
  136-6  commission may accept a donation of services or money or other
  136-7  property that the commission determines furthers the lawful
  136-8  objectives of the commission in connection with the Communities in
  136-9  Schools program.
 136-10        (b)  Donations must be accepted in an open meeting by a
 136-11  majority of the voting members of the commission.  The donation,
 136-12  with the name of the donor and the purpose of the donation, must be
 136-13  reported in the public records of the commission.
 136-14        SECTION 11.06.  Chapter 217, Labor Code, is moved from
 136-15  Subtitle A, Title 4, Labor Code, to Subtitle B of that title,
 136-16  redesignated as Chapter 306, Labor Code, and amended to read as
 136-17  follows:
 136-18     CHAPTER 306 <217>.  PROJECT RIO (REINTEGRATION OF OFFENDERS)
 136-19        Sec. 306.001 <217.001>.  DEFINITIONS.  In this chapter:
 136-20              (1)  "Department" means the Texas Department of
 136-21  Criminal Justice.
 136-22              (2)  "Institutional division" means the institutional
 136-23  division of the department.
 136-24              (3)  "Project RIO" means the project for reintegration
 136-25  of offenders.
 136-26        Sec. 306.002 <217.002>.  PROJECT RIO.  The project for
 136-27  reintegration of offenders is a statewide employment referral
  137-1  program designed to reintegrate into the labor force persons
  137-2  formerly confined in the institutional division.
  137-3        Sec. 306.003 <217.003>.  ADMINISTRATION.  The department and
  137-4  the commission shall cooperate to maximize the effectiveness of
  137-5  Project RIO. For that purpose, the commission shall administer the
  137-6  project.
  137-7        Sec. 306.004 <217.004>.  MEMORANDUM OF UNDERSTANDING--
  137-8  ADOPTION.  (a)  The department and the commission shall adopt a
  137-9  memorandum of understanding that establishes the respective
 137-10  responsibilities of each agency and of the divisions within the
 137-11  department.
 137-12        (b)  The commission shall coordinate the development of the
 137-13  memorandum of understanding.  The department shall adopt rules as
 137-14  necessary to implement the memorandum and may amend the memorandum
 137-15  and those rules as necessary.
 137-16        Sec. 306.005 <217.005>.  MEMORANDUM OF UNDERSTANDING--
 137-17  CONTENTS.  <(a)>  The memorandum of understanding must establish
 137-18  the role of:
 137-19              (1)  the institutional division in ascertaining and
 137-20  encouraging an inmate's chances for employment by:
 137-21                    (A)  providing vocational and educational
 137-22  assessment for the person while incarcerated in the division;
 137-23                    (B)  developing a skills enhancement program for
 137-24  the person while incarcerated, in cooperation with other
 137-25  governmental, educational, and private entities, using available
 137-26  public or private financial resources authorized by statute; and
 137-27                    (C)  referring the person on release to the
  138-1  project through the person's parole officer;
  138-2              (2)  the community justice assistance division and the
  138-3  pardons and paroles division of the department in:
  138-4                    (A)  encouraging and referring persons to the
  138-5  project; and
  138-6                    (B)  ensuring that those persons participate in
  138-7  the project and avail themselves of its services; and
  138-8              (3)  the commission in developing and maintaining a
  138-9  statewide network for finding positions of employment that require
 138-10  the skills possessed by project participants and in helping those
 138-11  participants to secure employment.
 138-12        <(b)  The memorandum also must establish the methods by which
 138-13  the commission shall coordinate its efforts under this chapter with
 138-14  the operations of service providers operating under Chapter 301
 138-15  (Texas Job-Training Partnership Act).>
 138-16        Sec. 306.006 <217.006>.  PROJECT DIRECTOR.  (a)  The
 138-17  executive director <administrator of the commission> shall
 138-18  designate the director of Project RIO to coordinate the efforts of
 138-19  the affected state agencies and expedite the delivery of services
 138-20  to participants in the project, including prospective employers.
 138-21        (b)  The project director shall:
 138-22              (1)  propose, for adoption by the commission, standards
 138-23  and guidelines for the operation of the project;
 138-24              (2)  obtain information from appropriate state agencies
 138-25  and offices affiliated with the project to determine any necessary
 138-26  changes in the project;
 138-27              (3)  disseminate information statewide about the
  139-1  project; and
  139-2              (4)  train commission staff to assist in the operation
  139-3  of affiliated services.
  139-4        SECTION 11.07.  Subchapter F, Chapter 202, Labor Code, is
  139-5  moved from Chapter 202, Labor Code, to Subtitle B, Title 4, Labor
  139-6  Code, redesignated as Chapter 307, and amended to read as follows:
  139-7            CHAPTER 307. <SUBCHAPTER F.> EMPLOYMENT SERVICE
  139-8        Sec. 307.001 <202.081>.  <TEXAS STATE> EMPLOYMENT SERVICE.
  139-9  <(a)>  The commission <Texas State Employment Service> is <a
 139-10  division of> the agency of this state designated to cooperate with
 139-11  the United States Employment Service <commission.>
 139-12        <(b)  The commission, through the division, shall establish
 139-13  and maintain free public employment offices> as necessary to
 139-14  perform the <commission's> duties of this state under the
 139-15  Wagner-Peyser Act (29 U.S.C. Section 49 et seq.) required to
 139-16  establish and maintain free<.  The number and locations of the>
 139-17  public employment offices <shall be determined by the commission as
 139-18  necessary for the proper administration of this subtitle>.
 139-19        Sec. 307.002 <202.082>.  EMPLOYMENT SERVICES AGREEMENTS.  (a)
 139-20  To ensure the establishment and maintenance of <establish and
 139-21  maintain> public employment offices under this chapter
 139-22  <subchapter>, the executive director <commission> may enter into an
 139-23  agreement with any political subdivision of the state or with a
 139-24  private or nonprofit organization, including a local workforce
 139-25  development board, and, as a part of the agreement, accept money,
 139-26  services, or quarters as a contribution to the employment service
 139-27  account.
  140-1        (b)  Except as provided by Subsection (c), to <To> establish
  140-2  and maintain, or assist in the establishment and maintenance of,
  140-3  public employment offices within a county or other political
  140-4  subdivision of this state, the commissioners court of the county or
  140-5  the governing body of the other political subdivision may enter
  140-6  into agreements with the employment service <Texas State Employment
  140-7  Service> on terms and conditions agreed to by the commissioners
  140-8  court or other governing body and the employment service <Texas
  140-9  State Employment Service>.  The county or other political
 140-10  subdivision may employ means and appropriate and spend funds as
 140-11  necessary to establish and operate the public employment offices,
 140-12  and may provide, as part of the agreement, payment for:
 140-13              (1)  the rent of premises;
 140-14              (2)  services rendered;
 140-15              (3)  the purchase of equipment; and
 140-16              (4)  any other purpose considered advisable by the
 140-17  commissioners court or other governing body.
 140-18        (c)  In an area in which a local workforce development board
 140-19  has been certified and a local plan approved by the governor, that
 140-20  board shall provide employment services in its local workforce
 140-21  development area, and a person employed by the commission to
 140-22  provide employment services on the day before the approved local
 140-23  plan takes effect shall be given preference in employment at a
 140-24  career development center administered by that board <The penalty
 140-25  provisions of this subtitle, including the provisions of Chapters
 140-26  213 and 214, do not apply to an action or omission under Subsection
 140-27  (b)>.
  141-1          <Sections 202.083-202.090 reserved for expansion>
  141-2        SECTION 11.08.  Section 203.153, Labor Code, is moved from
  141-3  Chapter 203, Labor Code, to Subtitle B, Title 4, Labor Code,
  141-4  redesignated as Section 307.003, and amended to read as follows:
  141-5        Sec. 307.003 <203.153>.  EMPLOYMENT SERVICE FINANCING.  Money
  141-6  received by the state under the Wagner-Peyser Act (29 U.S.C.
  141-7  Section 49 et seq.) shall be deposited to the credit of the
  141-8  employment service account in the general revenue <of the
  141-9  administration> fund.  The money in the account may be used by the
 141-10  commission as provided by this chapter <Subchapter F of Chapter
 141-11  202> and the Wagner-Peyser Act.
 141-12        SECTION 11.09.  Section 209.001, Labor Code, is amended by
 141-13  adding Subdivision (6) to read as follows:
 141-14              (6)  "Employment service" has the meaning assigned by
 141-15  Section 301.001.
 141-16        SECTION 11.10.  Section 1.03, Workforce and Economic
 141-17  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 141-18  Statutes), is amended to read as follows:
 141-19        Sec. 1.03.  Application of Sunset Act.  The Council on
 141-20  Workforce  and Economic Competitiveness is subject to Chapter 325,
 141-21  Government Code (Texas Sunset Act). Unless continued in existence
 141-22  as provided by that chapter, the council is abolished September 1,
 141-23  1999 <2001>.
 141-24        SECTION 11.11. Section 1.04, Workforce and Economic
 141-25  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 141-26  Statutes), is amended to read as follows:
 141-27        Sec. 1.04.  DEFINITIONS.  In this Act:
  142-1              (1)  "Council" means the Council on Workforce and
  142-2  Economic  Competitiveness.
  142-3              (2)  "Division" means the division of workforce
  142-4  development of the Texas Workforce Commission.
  142-5              (3)  "Human resource investment council" means a human
  142-6  resource investment council under the Job Training Reform
  142-7  Amendments Act of 1992 (Pub. L.  No.  102-367, Section 701 et
  142-8  seq.).
  142-9              (4)  "Local labor market" means an economically
 142-10  integrated geographical area within which individuals may reside
 142-11  and find employment within a reasonable distance.
 142-12              (5) <(3)>  "Program year" means July 1 to June 30.
 142-13              (6) <(4)>  "Workforce development" includes workforce
 142-14  education programs and workforce training and services.
 142-15              (7) <(5)>  "Workforce education" means articulated
 142-16  career-path programs and the constituent courses of those programs
 142-17  that lead to initial or continuing licensure or certification or
 142-18  associate degree-level accreditation and that:
 142-19                    (A)  are subject to:
 142-20                          (i) <(A)>  initial and ongoing state
 142-21  approval or regional or specialized accreditation;
 142-22                          (ii) <(B)>  a formal state evaluation that
 142-23  provides the basis for program continuation or termination;
 142-24                          (iii) <(C)>  state accountability and
 142-25  performance standards; and
 142-26                          (iv) <(D)>  regional or statewide
 142-27  employer-driven labor market demand documentation; or
  143-1                    (B)  are subject to approval by the Texas Higher
  143-2  Education Coordinating Board as adult vocational or continuing
  143-3  education courses.
  143-4              (8) <(6)>  "Workforce training and services" means
  143-5  training and services programs that are not included within the
  143-6  definition of workforce education.
  143-7        SECTION 11.12.  Section 2.01, Workforce and Economic
  143-8  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  143-9  Statutes), is amended to read as follows:
 143-10        Sec. 2.01.  CREATION OF COUNCIL.  (a)  The Council on
 143-11  Workforce and Economic Competitiveness is created <as a state
 143-12  agency> to act as a human resources investment council.
 143-13        (b)  The council is attached for administrative purposes to
 143-14  the office of the governor.
 143-15        SECTION 11.13.  Section 2.02(b), Workforce and Economic
 143-16  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 143-17  Statutes), is amended to read as follows:
 143-18        (b)  The council shall be composed of:
 143-19              (1)  three <the following ex officio voting members:>
 143-20                    <(A)  the commissioner of education;>
 143-21                    <(B)  the commissioner of higher education;>
 143-22                    <(C)  the commissioner of health and human
 143-23  services;>
 143-24                    <(D)  the executive director of the Texas
 143-25  Department of Commerce; and>
 143-26                    <(E)  the administrator of the Texas Employment
 143-27  Commission;>
  144-1              <(2)  six> voting members appointed by the governor who
  144-2  represent education, <at least> one of whom represents local public
  144-3  education, one of whom represents public postsecondary education,
  144-4  <one of whom represents secondary vocational education,> and one of
  144-5  whom represents <postsecondary> vocational education;
  144-6              (2)  five <(3)  seven> voting members who represent
  144-7  organized labor appointed by the governor based on recommendations
  144-8  made by recognized labor organizations;
  144-9              (3)  five <(4)  seven> voting members appointed by the
 144-10  governor who represent business and industry, including business
 144-11  members serving on local workforce development boards or private
 144-12  industry councils;
 144-13              (4)  two <(5)  one> voting members <member> appointed
 144-14  by the governor who represent <represents a> community-based
 144-15  organizations and who are not providers of services <organization>;
 144-16  and
 144-17              (5) <(6)  one voting member appointed by the governor
 144-18  who represents a joint-sponsored apprenticeship program as defined
 144-19  by the United States Department of Labor's Bureau of Apprenticeship
 144-20  and Training appointed from a list of three nominees submitted to
 144-21  the governor by the Apprenticeship and Training Association of
 144-22  Texas;>
 144-23              <(7)  one voting member appointed by the governor who
 144-24  represents a community-based adult literacy organization;>
 144-25              <(8)  one voting member appointed by the governor who
 144-26  represents adult basic and continuing education programs;>
 144-27              <(9)  six voting members appointed by the governor each
  145-1  of whom represents not more than one of the following categories:>
  145-2                    <(A)  literacy groups;>
  145-3                    <(B)  local welfare or public housing agencies;>
  145-4                    <(C)  units of local government;>
  145-5                    <(D)  adult education organizations;>
  145-6                    <(E)  teachers or counselors;>
  145-7                    <(F)  local service delivery organizations;>
  145-8                    <(G)  special needs populations;>
  145-9                    <(H)  rural and agricultural organizations;>
 145-10                    <(I)  proprietary schools;>
 145-11                    <(J)  members of the state legislature; and>
 145-12                    <(K)  other groups and organizations; and>
 145-13              <(10)>  the following ex officio voting <nonvoting>
 145-14  members:
 145-15                    (A)  the chair of the State Board of Education;
 145-16                    (B)  the chair of the Texas Higher Education
 145-17  Coordinating Board;
 145-18                    (C)  the presiding officer of the Texas Board of
 145-19  Human Services;
 145-20                    (D)  the presiding officer of the policy advisory
 145-21  <governing> board of the Texas Department of Commerce; and
 145-22                    (E)  the chair of the Texas Workforce
 145-23  <Employment> Commission<;>
 145-24                    <(F)  the commissioner of the Texas
 145-25  Rehabilitation Commission; and>
 145-26                    <(G)  the executive director of the Texas
 145-27  Commission for the Blind>.
  146-1        SECTION 11.14.  Section 2.06(a), Workforce and Economic
  146-2  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  146-3  Statutes), is amended to read as follows:
  146-4        (a)  The council shall:
  146-5              (1)  promote the development of a well-educated, highly
  146-6  skilled workforce in this state <through literacy, adult basic
  146-7  education, community education, apprenticeship, and
  146-8  state-of-the-art occupational skills education and training
  146-9  programs>;
 146-10              (2)  <serve as an> advocate <for> the development of an
 146-11  integrated workforce development system to provide quality services
 146-12  addressing the needs of business and workers in this state;
 146-13              (3)  <promote and assist in the development of an
 146-14  industry-based skills standards and certification system for
 146-15  occupations requiring less than a baccalaureate-level education and
 146-16  training;>
 146-17              <(4)  promote the development of high productivity
 146-18  workplaces in this state;>
 146-19              <(5)  recommend to the governor the components of a
 146-20  school and training-to-work transition process;>
 146-21              <(6)>  develop and recommend to the governor a single
 146-22  strategic plan that establishes the framework for the budgeting and
 146-23  operation of all workforce development programs, including school
 146-24  to work transition programs, administered by agencies represented
 146-25  on the council;
 146-26              (4) <(7)>  recommend to the governor the designation or
 146-27  redesignation of workforce development areas for the local planning
  147-1  and delivery of workforce development programs;
  147-2              (5) <(8)>  identify and recommend to the governor
  147-3  incentives to encourage the consolidation, on a regional labor
  147-4  market basis, of:
  147-5                    (A)  local boards, councils, and committees; and
  147-6                    (B)  service delivery areas authorized under the
  147-7  Job Training Partnership Act (29 U.S.C. Section 1501 et seq.);
  147-8              (6) <(9)  design and implement a state-local planning
  147-9  process for the state's workforce training and services programs;>
 147-10              <(10)>  review local workforce training and services
 147-11  plans and make recommendations to the governor for approval;
 147-12              (7)  evaluate <(11)  implement a statewide system for
 147-13  evaluating> the effectiveness of all workforce development programs
 147-14  using the administrative records of the state's unemployment
 147-15  compensation program and other sources as appropriate;
 147-16              (8) <(12)>  support research and demonstration projects
 147-17  designed to develop new programs and approaches to service
 147-18  delivery;
 147-19              (9)  recommend measures to <(13)  provide for training
 147-20  and professional development for council members, local chief
 147-21  elected officials, workforce development boards and staff, and
 147-22  private industry councils and staff;>
 147-23              <(14)  serve as an advocate at the state and federal
 147-24  levels for the local workforce development boards;>
 147-25              <(15)  establish and operate a comprehensive labor
 147-26  market information system that serves employers, students, workers,
 147-27  and state and local planning  organizations;>
  148-1              <(16)>  ensure that occupational skills training is
  148-2  provided in occupations that are currently in demand at the local
  148-3  level and is directed toward high-skill and high-wage jobs;
  148-4              (10)  monitor <(17)  develop and recommend to the
  148-5  governor and legislature not later than November 15, 1994, a plan
  148-6  for consolidating all workforce development programs in this state;>
  148-7              <(18)  oversee> the operation of the state's workforce
  148-8  development programs to assess the degree to which the programs are
  148-9  effective in achieving state and local goals and objectives;
 148-10              (11) <(19)>  develop and recommend to the governor
 148-11  criteria for the establishment of local workforce development
 148-12  boards; and
 148-13              (12) <(20)  develop objective criteria for granting
 148-14  waivers allowed under this Act;>
 148-15              <(21)  develop and recommend to the governor a plan to
 148-16  ensure client accessibility to workforce programs that includes a
 148-17  uniform statewide client application system for determining an
 148-18  applicant's eligibility for a workforce program for which state or
 148-19  federal financial assistance is available; and>
 148-20              <(22)>  carry out the federal and state mandated duties
 148-21  and responsibilities for all advisory councils under applicable
 148-22  federal and state workforce development programs.
 148-23        SECTION 11.15.  Section 2.09(d), Workforce and Economic
 148-24  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 148-25  Statutes), is amended to read as follows:
 148-26        (d)  At least annually, the council shall issue an
 148-27  occupation-specific analysis by provider of the job placement
  149-1  performance of each workforce education program for the previous
  149-2  one-year, three-year, and five-year periods to:
  149-3              (1)  each provider of a workforce education program or
  149-4  workforce training and services program;
  149-5              (2)  the Texas Higher Education Coordinating Board for
  149-6  each provider of a workforce education program approved and
  149-7  administered by the board; <and>
  149-8              (3)  each local workforce development board for each
  149-9  provider of workforce training and services within the workforce
 149-10  development area; and
 149-11              (4)  the division of workforce development of the Texas
 149-12  Workforce Commission.
 149-13        SECTION 11.16.  Section 2.10, Workforce and Economic
 149-14  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 149-15  Statutes), is amended to read as follows:
 149-16        Sec. 2.10.  SUBCOMMITTEES; TECHNICAL ADVISORY COMMITTEES.
 149-17  (a)  The presiding officer of the council may appoint subcommittees
 149-18  consisting of members of the council for any purpose consistent
 149-19  with the duties and responsibilities of the council under this Act.
 149-20        (b)  The presiding officer of the council may appoint <other>
 149-21  technical advisory committees composed of council members or
 149-22  persons who are not council members, or both members and
 149-23  nonmembers.
 149-24        SECTION 11.17.  Section 2.11, Workforce and Economic
 149-25  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 149-26  Statutes), is amended to read as follows:
 149-27        Sec. 2.11. DISSOLUTION OF STATE ADVISORY COUNCILS AND
  150-1  TRANSFER OF <STATE ADVISORY COUNCIL> RESPONSIBILITIES.  (a)  The
  150-2  council shall assume the responsibilities assigned to the state
  150-3  advisory council under the following federal laws:
  150-4              (1)  the Job Training Partnership Act (29 U.S.C.
  150-5  Section 1501 et seq.);
  150-6              (2)  the Carl D. Perkins Vocational and Applied
  150-7  Technology Education Act (20 U.S.C. Section 2301 et seq.);
  150-8              (3)  the National and Community Service Act of 1990 (42
  150-9  U.S.C. Section 12501 et seq.);
 150-10              (4)  the Adult Education Act (20 U.S.C. Section 1201 et
 150-11  seq.);
 150-12              (5)  the Wagner-Peyser Act (29 U.S.C. Section 49 et
 150-13  seq.);
 150-14              (6)  Part F, Subchapter IV, Social Security Act (42
 150-15  U.S.C. Section 681 et seq.);
 150-16              (7)  the employment program established under Section
 150-17  6(d)(4), Food Stamp Act of 1977 (7 U.S.C. Section 2015(d)(4)); and
 150-18              (8)  the National Literacy Act of 1991 (Pub. L. 102-73
 150-19  et seq.).
 150-20        (b)  The following state advisory councils, boards, and
 150-21  committees are dissolved and the council shall assume the
 150-22  responsibilities formerly exercised by the following state advisory
 150-23  councils, boards, and committees:
 150-24              (1)  the State Job Training Coordinating Council;
 150-25              (2)  the Texas Council on Vocational Education;
 150-26              (3)  <the technical advisory committee to the State
 150-27  Occupational Information Coordinating Council;>
  151-1              <(4)>  the Texas Literacy Council; and
  151-2              (4) <(5)>  the Apprenticeship and Training Advisory
  151-3  Committee.
  151-4        SECTION 11.18.  Section 2.12, Workforce and Economic
  151-5  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  151-6  Statutes), is amended to read as follows:
  151-7        Sec. 2.12.  FISCAL AGENT.  The office of the governor shall
  151-8  <council may designate another state agency to> serve as the
  151-9  council's fiscal agent <if the designated agent agrees to the
 151-10  designation>.
 151-11        SECTION 11.19.  Section 2.13(c), Workforce and Economic
 151-12  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 151-13  Statutes), is amended to read as follows:
 151-14        (c)  The executive director shall <may> adopt the
 151-15  administrative and personnel procedures of the council's fiscal
 151-16  agent rather than adopting new procedures for the council.
 151-17        SECTION 11.20.  Section 2.17(d), Workforce and Economic
 151-18  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 151-19  Statutes), is amended to read as follows:
 151-20        (d)  State agencies that are responsible for the
 151-21  administration of human resources and workforce development
 151-22  programs in this state shall implement the recommendations if the
 151-23  recommendations do not violate an existing federal or state law<,
 151-24  regulation, or rule>.
 151-25        SECTION 11.21.  Section 2.18, Workforce and Economic
 151-26  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 151-27  Statutes), is amended to read as follows:
  152-1        Sec. 2.18.  FUNDING.  (a)  Federal funding for the operation
  152-2  of the council shall be allocated according to federal
  152-3  requirements.
  152-4        (b)  <The council shall develop a budget to carry out the
  152-5  council's duties and responsibilities under this Act.  The budget
  152-6  must be submitted to the governor and the Legislative Budget Board
  152-7  for approval.  The budget shall identify funds appropriated for the
  152-8  biennium ending August 31, 1995, for planning and evaluation of a
  152-9  workforce development program administered by an agency represented
 152-10  on the council and shall recommend the transfer of those funds to
 152-11  the functions being assumed by the council.>
 152-12        <(c)>  A state agency represented on the council shall
 152-13  provide funds for the support of the council in proportion to the
 152-14  agency's financial participation in the workforce development
 152-15  system.
 152-16        SECTION 11.22.  Section 4.01, Workforce and Economic
 152-17  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 152-18  Statutes), is amended to read as follows:
 152-19        Sec. 4.01.  CREATION OF LOCAL WORKFORCE DEVELOPMENT BOARDS.
 152-20  (a)  The chief elected officials in a workforce development area
 152-21  designated by the governor under Section 3.01 of this Act may form,
 152-22  in accordance with rules established by the Texas Workforce
 152-23  Commission <council>, a local workforce development board to plan
 152-24  and oversee the delivery of all workforce training and services
 152-25  programs and evaluate all workforce development programs in the
 152-26  workforce development area. The authority granted under this
 152-27  subsection does not give a local workforce development board any
  153-1  direct authority or control over workforce funds and programs in
  153-2  its workforce development area, other than programs funded through
  153-3  that board.
  153-4        (b)  Before a local workforce development board may be
  153-5  created, at least three-fourths of the chief elected officials in
  153-6  the workforce development area who represent units of general local
  153-7  government must agree to the creation of the board, including all
  153-8  of the chief elected officials who represent units of general local
  153-9  government having populations of at least 200,000.  The elected
 153-10  officials agreeing to the creation of the board must represent at
 153-11  least 75 percent of the population of the workforce development
 153-12  area.
 153-13        (c)  On agreement regarding the formation of a local
 153-14  workforce development board, the chief elected officials shall
 153-15  reduce the agreement to writing.  The local government agreement
 153-16  shall include:
 153-17              (1)  the purpose for the agreement;
 153-18              (2)  the process that will be used to select the chief
 153-19  elected official who will act on behalf of the other chief elected
 153-20  officials;
 153-21              (3)  the process that will be followed to keep those
 153-22  chief elected officials informed regarding local workforce
 153-23  development activities;
 153-24              (4)  the initial size of the local workforce
 153-25  development board;
 153-26              (5)  how resources allocated to the local workforce
 153-27  development area will be shared among the parties to the agreement;
  154-1              (6) <(4)>  the process to be used to appoint the board
  154-2  members, which must be consistent with applicable federal and state
  154-3  laws; and
  154-4              (7) <(5)>  the terms of office of the members of the
  154-5  board.
  154-6        (d) <(c)>  The chief elected officials shall consider the
  154-7  views of all affected local organizations, including private
  154-8  industry councils and quality workforce planning committees, before
  154-9  making a final decision regarding the formation of a local
 154-10  workforce development board.
 154-11        (e) <(d)>  None of the powers and duties granted a workforce
 154-12  development board under this Act may be exercised in a workforce
 154-13  development area until the chief elected officials in that area
 154-14  reach an agreement providing for the establishment of a local
 154-15  workforce development board as provided by Subsection (b) of this
 154-16  section and the board is certified by the governor.
 154-17        (f) <(e)>  A private industry council in an area in which a
 154-18  local workforce development board is not created or in which the
 154-19  chief elective officers are unable to negotiate the establishment
 154-20  of a local workforce development board may not exercise any of the
 154-21  powers granted a local workforce development board by this Act,
 154-22  except for a power granted under the Job Training Partnership Act
 154-23  (29 U.S.C. Section 1501 et seq.).
 154-24        (g)  A member or former member of a local workforce
 154-25  development board may not be held personally liable for any claim,
 154-26  damage, loss, or repayment obligation of federal or state funds
 154-27  that arises from this Act unless the act or omission that causes
  155-1  the claim, damage, loss, or repayment obligation constitutes
  155-2  official misconduct on the part of the board member, wilful
  155-3  disregard of the requirements of this Act on the part of the board
  155-4  member, or gross negligence on the part of the board member.
  155-5        (h)  In a state planning area in which there is more than one
  155-6  local workforce development area, the quality workforce planning
  155-7  committee of that state planning area shall continue in existence
  155-8  to provide labor market information for the entire area until local
  155-9  workforce development boards are certified in each workforce
 155-10  development area in the state planning area.
 155-11        SECTION 11.23.  Section 4.04, Workforce and Economic
 155-12  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 155-13  Statutes), is amended by amending Subsections (a), (c), and (d) and
 155-14  by adding Subsection (f) to read as follows:
 155-15        (a)  A board is directly responsible and accountable to the
 155-16  division <council> for the planning and oversight of all workforce
 155-17  training and services and the evaluation of all workforce
 155-18  development programs in the workforce development area.  A
 155-19  workforce development board shall ensure effective outcomes
 155-20  consistent with statewide goals, objectives, and performance
 155-21  standards approved by the governor.  The division <council> shall
 155-22  assist workforce development boards in designing effective measures
 155-23  to accomplish this responsibility.  A board is directly responsible
 155-24  to the division for the operational planning and administration of
 155-25  all workforce training and services funded through the Texas
 155-26  Workforce Commission to the local area.
 155-27        (c)  A board shall:
  156-1              (1)  serve as a single point of contact for local
  156-2  business to communicate their skill needs and influence the
  156-3  direction of all workforce development programs in the workforce
  156-4  development area;
  156-5              (2)  serve as a private industry council under the
  156-6  federal Job Training Partnership Act (29 U.S.C. Section 1501 et
  156-7  seq.);
  156-8              (3)  develop a local plan for addressing the workforce
  156-9  development needs of the workforce development area that:
 156-10                    (A)  is responsive to the goals, objectives, and
 156-11  performance standards established by the governor;
 156-12                    (B)  targets services to meet local needs,
 156-13  including the identification of industries and employers likely to
 156-14  employ workers who complete job training programs; and
 156-15                    (C)  ensures that the workforce development
 156-16  system, including the educational system, has the flexibility to
 156-17  meet the needs of local businesses;
 156-18              (4) <(3)>  designate the board or some other entity as
 156-19  the board's fiscal agent to be responsible and accountable for the
 156-20  management of all workforce development funds available to the
 156-21  board;
 156-22              (5) <(4)>  create local career <workforce> development
 156-23  centers as established in Article 5 of this Act;
 156-24              (6) <(5)>  review plans for workforce education to
 156-25  ensure that the plans address the needs of local businesses and
 156-26  recommend changes in the delivery of education services as
 156-27  appropriate;
  157-1              (7) <(6)>  assume the functions and responsibilities of
  157-2  local workforce development advisory boards, councils, and
  157-3  committees authorized by federal or state laws, including private
  157-4  industry councils, quality workforce planning committees, job
  157-5  service employer committees, and local general vocational program
  157-6  advisory committees;
  157-7              (8) <(7)>  monitor and evaluate the effectiveness of
  157-8  the career <workforce> development centers, state agencies and
  157-9  other contractors providing workforce training and services, and
 157-10  vocational and technical education programs operated by local
 157-11  education agencies and institutions of higher education to ensure
 157-12  that performance is consistent with state and local goals and
 157-13  objectives; and
 157-14              (9) <(8)>  promote cooperation and coordination among
 157-15  public organizations, community organizations, and private business
 157-16  providing workforce development services<; and (9)  review
 157-17  applications as consistent with rules developed by the Texas
 157-18  Department of Commerce for funds under the smart jobs fund program
 157-19  under Subchapter J, Chapter 481, Government Code>.
 157-20        (d)  The board shall ensure that employment services are
 157-21  provided for persons seeking employment in the local workforce
 157-22  development area.  The board shall contract with an appropriate
 157-23  entity for the provision of the services, or, if all necessary
 157-24  waivers are granted, the board may provide the services directly.
 157-25  The board may provide relevant labor market information and
 157-26  information regarding the availability of existing workforce
 157-27  development programs to the division <department> in performing the
  158-1  board's duties under <Subsection (c)(9) of> this section.
  158-2        (f)  The chief elected officials designated under Section
  158-3  4.01(b) of this Act shall enter into a partnership agreement with
  158-4  the local workforce development board to select the grant recipient
  158-5  and the administrative entity for the local workforce development
  158-6  area and to determine procedures for the development of the local
  158-7  workforce development plan.
  158-8        SECTION 11.24.  Section 4.05, Workforce and Economic
  158-9  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 158-10  Statutes), is amended to read as follows:
 158-11        Sec. 4.05.  LOCAL PLAN.  (a)  A local workforce development
 158-12  board shall develop a single plan that includes the components
 158-13  specified in this section.
 158-14        (b)  The plan must include a strategic component that:
 158-15              (1)  assesses the labor market needs of the local
 158-16  workforce development area;
 158-17              (2)  identifies existing workforce development
 158-18  programs;
 158-19              (3)  evaluates the effectiveness of existing programs
 158-20  and services; and
 158-21              (4)  sets broad goals and objectives for all workforce
 158-22  development programs in the local area consistent with statewide
 158-23  goals, objectives, and performance standards.
 158-24        (c)  The plan must include an operational component that
 158-25  specifies how all of the resources available to the local workforce
 158-26  development area from the Texas Workforce Commission will be used
 158-27  to achieve the goals and objectives of the plan for the area.  At a
  159-1  minimum, this component must establish:
  159-2              (1)  the goals, objectives, and performance measures to
  159-3  be used in overseeing and evaluating the operation of all workforce
  159-4  training and services;
  159-5              (2)  the segments of the population targeted for
  159-6  various services;
  159-7              (3)  the mix of services to be provided and how they
  159-8  are to be provided; and
  159-9              (4)  the structure of the local service delivery
 159-10  system.
 159-11        (d)  Program resources included in the operational component
 159-12  are those under <for the delivery of all workforce training and
 159-13  services in the board's service area under the following programs>:
 159-14              (1)  job training programs funded under the <Texas>
 159-15  Job-Training Partnership Act (29 U.S.C. Section 1501 et seq.)
 159-16  <(Article 4413(52), Vernon's Texas Civil Statutes)>;
 159-17              (2)  postsecondary vocational and technical job
 159-18  training programs that are not part of approved courses or programs
 159-19  that lead to licensing, certification, or an associate degree under
 159-20  Chapters 61, 108, 130, and 135, and Subchapter E, Chapter 88,
 159-21  Education Code;
 159-22              (3)  adult education programs under Section 11.18,
 159-23  Education Code;
 159-24              (4)  employment services programs <apprenticeship
 159-25  programs under Chapter 33, Education Code>;
 159-26              (5)  <the trade adjustment assistance program under
 159-27  Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
  160-1  seq.);>
  160-2              <(6)  the senior citizens employment program under
  160-3  Chapter 101, Human Resources Code;>
  160-4              <(7)  the Texas Unemployment Compensation Act (Article
  160-5  5221b-1 et seq., Vernon's Texas Civil Statutes);>
  160-6              <(8)>  literacy funds available to the state under the
  160-7  National Literacy Act of 1991 (Pub. L. 102-73 et seq.);
  160-8              (6) <(9)  the National and Community Service Act of
  160-9  1990 (42 U.S.C. Section 12501 et seq.);>
 160-10              <(10)>  the job opportunities and basic skills program
 160-11  under Part F, Subchapter IV, Social Security Act (42 U.S.C.
 160-12  Section 682); and
 160-13              (7) <(11)>  the food stamp employment and training
 160-14  program authorized under 7 U.S.C. Section 2015(d).
 160-15        <(b)  A local plan shall identify:>
 160-16              <(1)  goals, objectives, and performance measures;>
 160-17              <(2)  the population to be served;>
 160-18              <(3)  the mix of services to be provided;>
 160-19              <(4)  the service providers; and>
 160-20              <(5)  the structure of the delivery system.>
 160-21        SECTION 11.25.  Sections 4.06(a) and (f), Workforce and
 160-22  Economic Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 160-23  Statutes), are amended to read as follows:
 160-24        (a)  A board shall review, verify, modify, and use local
 160-25  labor market information developed through the state's <in
 160-26  conjunction with the council shall establish and operate an
 160-27  automated, interactive employer-driven> labor market information
  161-1  system to identify occupation-specific labor demand in each
  161-2  workforce development area.
  161-3        (f)  A public community college shall promptly provide
  161-4  workforce training and services that are requested:
  161-5              (1)  by the workforce development board based on the
  161-6  <board's> labor market <demand> information system available for
  161-7  the area;
  161-8              (2)  by employers located in the college's taxing
  161-9  district when the request is presented directly to the college by
 161-10  the employers or through the workforce development board; or
 161-11              (3)  as part of an economic development incentive
 161-12  package designed to attract or retain an employer, including a
 161-13  package offered under the smart jobs fund program under Subchapter
 161-14  J, Chapter 481, Government Code.
 161-15        SECTION 11.26.  Section 4.08(a), Workforce and Economic
 161-16  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 161-17  Statutes), is amended to read as follows:
 161-18        (a)  A board shall establish a budget for the board that must
 161-19  be included in the local workforce development plan submitted to
 161-20  the division <Council on Workforce and Economic Competitiveness>.
 161-21  A board may employ professional, technical, and support staff as
 161-22  necessary to carry out its <strategic> planning, oversight, and
 161-23  evaluation functions.  A board's staff shall be separate from and
 161-24  independent of any organization providing workforce education or
 161-25  workforce training and services in the workforce development area.
 161-26        SECTION 11.27.  Article 5, Workforce and Economic
 161-27  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  162-1  Statutes), is amended to read as follows:
  162-2                   ARTICLE 5.  LOCAL DELIVERY SYSTEM
  162-3        Sec. 5.01.  COMPONENTS.  The local workforce development
  162-4  system is composed of two major components as follows:
  162-5              (1)  an employer services component that provides labor
  162-6  market information and services and other services as appropriate
  162-7  to local employers; and
  162-8              (2)  an integrated service delivery system composed of
  162-9  a network of career development centers serving the people of this
 162-10  state based on a "one-stop for service" approach and supported by
 162-11  electronic access to comprehensive labor market information.
 162-12        Sec. 5.02.  CAREER <WORKFORCE> DEVELOPMENT CENTERS.  (a) A
 162-13  local workforce development board shall establish career
 162-14  <workforce> development centers accessible to students and <,>
 162-15  workers<, and employers> throughout the workforce development area.
 162-16  Each center shall provide access to information and services
 162-17  available in the workforce development area, including employment
 162-18  services, and shall address the individual needs of students and
 162-19  <,> workers<, and employers>.  The services <available at a center>
 162-20  shall be tailored to meet individual needs and shall include the
 162-21  following:
 162-22              (1)  labor market information, including <the skills of
 162-23  the area workforce,> available job openings<,> and the education
 162-24  and <,> training<, and employment> opportunities in the local area,
 162-25  in the state, and as feasible, in the nation;
 162-26              (2)  a common intake and eligibility determination
 162-27  process for all workforce training <development programs> and
  163-1  services;
  163-2              (3)  independent assessment of individual needs and the
  163-3  development of an individual service strategy;
  163-4              (4)  centralized and continuous case management and
  163-5  counseling;
  163-6              (5)  individual referral for services including basic
  163-7  education, classroom skills training, on-the-job training, and
  163-8  customized training; and
  163-9              (6)  supportive services, including child care, student
 163-10  loans, and other forms of financial assistance required to
 163-11  participate in and complete training.
 163-12        (b)  Except as provided by Subsection (c) of this section, a
 163-13  person that provides one-stop services may not also provide
 163-14  developmental services, such as basic education and skills
 163-15  training.
 163-16        (c)  The division may develop a waiver process for a person
 163-17  subject to Subsection (b) of this section.  The request for a
 163-18  waiver must include a detailed justification based on the lack of
 163-19  an existing qualified alternative for delivery of developmental
 163-20  services in the applicable workforce development area.
 163-21        (d)  The Texas Workforce Commission, in cooperation with
 163-22  local workforce development boards, shall provide for the filing of
 163-23  unemployment insurance claims through career development centers in
 163-24  each local workforce development area.
 163-25        Sec. 5.03. <Sec. 5.02.>  RIGHT TO KNOW.  A local career
 163-26  <workforce> development center shall provide each person, before
 163-27  the person participates in a vocational or technical training
  164-1  program, a written document that informs the person of current
  164-2  employment prospects, <and> the current wage level for a person who
  164-3  completes the vocational or technical training program in which the
  164-4  person is considering participating, and the most recent
  164-5  information available on the performance of institutions providing
  164-6  that training in the local workforce development area.
  164-7        SECTION 11.28.  The Workforce and Economic Competitiveness
  164-8  Act (Article 5190.7a, Vernon's Texas Civil Statutes) is amended by
  164-9  adding Article 7 to read as follows:
 164-10                   ARTICLE 7.  SKILL STANDARDS BOARD
 164-11        Sec. 7.01.  TEXAS SKILL STANDARDS BOARD.  (a)  The Texas
 164-12  Skill Standards Board is created as an advisory board to the
 164-13  governor and the legislature on the development of a statewide
 164-14  system of industry-defined and industry-recognized skill standards
 164-15  and credentials for all major skilled occupations that:
 164-16              (1)  provide strong employment and earnings
 164-17  opportunities in this state; and
 164-18              (2)  require less than a baccalaureate degree.
 164-19        (b)  The board is composed of 11 members appointed by and
 164-20  serving at the pleasure of the governor.  The board consists of the
 164-21  following members:
 164-22              (1)  seven members representing business, two of whom
 164-23  must be from business entities that employ fewer than 50 employees;
 164-24              (2)  two members representing labor;
 164-25              (3)  one member representing secondary education; and
 164-26              (4)  one member representing postsecondary education.
 164-27        (c)  The governor shall appoint the presiding officer of the
  165-1  board from the members representing business.
  165-2        (d)  The board shall:
  165-3              (1)  validate nationally established skill standards to
  165-4  guide curriculum development, training, assessment, and
  165-5  certification of workforce skills;
  165-6              (2)  convene industry groups to develop skill standards
  165-7  and certification procedures for industries and occupations in
  165-8  which standards have not been established or adopted;
  165-9              (3)  review standards developed by other states and
 165-10  nations and enter into agreements for mutual recognition of
 165-11  credentials to enhance portability of skills; and
 165-12              (4)  promote the use of standards and credentials among
 165-13  employers.
 165-14        (e)  The board shall meet at the call of the presiding
 165-15  officer as often as necessary to accomplish its work.
 165-16        (f)  A member of the board is not entitled to compensation
 165-17  for service on the board but is entitled to reimbursement for
 165-18  reasonable expenses incurred in performing board duties, subject to
 165-19  any applicable limitation in the General Appropriations Act.
 165-20        (g)  The council shall provide staff support for the board as
 165-21  necessary.
 165-22        (h)  The board shall report periodically to the governor and
 165-23  shall provide annual reports to the governor, the division, and the
 165-24  legislature.
 165-25        (i)  Article 6252-33, Revised Statutes, does not apply to the
 165-26  board.
 165-27        SECTION 11.29.  The following are repealed:
  166-1              (1)  Section 2.08, Workforce and Economic
  166-2  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  166-3  Statutes);
  166-4              (2)  Section 2.13(e), Workforce and Economic
  166-5  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  166-6  Statutes);
  166-7              (3)  Section 2.14, Workforce and Economic
  166-8  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  166-9  Statutes);
 166-10              (4)  Section 2.16, Workforce and Economic
 166-11  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 166-12  Statutes); and
 166-13              (5)  Section 2.17(f), Workforce and Economic
 166-14  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 166-15  Statutes).
 166-16        SECTION 11.30.  In making appointments to the Council on
 166-17  Workforce and Economic Competitiveness, as that council is
 166-18  reestablished under Section 2.02(b), Workforce and Economic
 166-19  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
 166-20  Statutes), as amended by this Act, the governor shall reappoint to
 166-21  the council at least seven of the members who served on that
 166-22  council in a non-ex officio capacity on the day before the
 166-23  effective date of this Act.
 166-24        SECTION 11.31.  Section 11.18, Education Code, as amended by
 166-25  Chapter 463, Acts of the 71st Legislature, Regular Session, 1989,
 166-26  is amended to read as follows:
 166-27        Sec. 11.18.  Adult Education.  (a)  As used in this section,
  167-1  the following words and phrases shall have the indicated meanings:
  167-2              (1)  "Adult education" means services and instruction
  167-3  provided below the college level for adults by public local
  167-4  education agencies, public nonprofit agencies, or community-based
  167-5  organizations <below the college credit level for adults>.
  167-6              (2)  "Adult" means any individual who is over the age
  167-7  of compulsory school attendance as set forth in Section 21.032 of
  167-8  this code.
  167-9              (3)  "Community-based organization" has the meaning
 167-10  assigned by 20 U.S.C.  Section 1201a, including any future
 167-11  amendments.
 167-12              (4)  "Community education" means the concept which
 167-13  involves the people of the community in a program designed to
 167-14  fulfill their educational needs, while promoting more effective use
 167-15  of public education facilities and other public facilities for the
 167-16  purpose of providing recreational, cultural, and other related
 167-17  community services.
 167-18        (b)  The Texas Workforce Commission <Central Education
 167-19  Agency> shall:
 167-20              (1)  manage this program with adequate staffing to
 167-21  develop, administer, and support a comprehensive statewide adult
 167-22  education program and coordinate related federal and state programs
 167-23  for education and training of adults;
 167-24              (2)  develop, implement, and regulate a comprehensive
 167-25  statewide program for community level education services to meet
 167-26  the special needs of adults;
 167-27              (3)  develop the mechanism and guidelines for
  168-1  coordination of comprehensive adult education and related skill
  168-2  training services for adults with other agencies, both public and
  168-3  private, in planning, developing, and implementing related
  168-4  programs, including community education programs;
  168-5              (4)  administer all state and federal funds for adult
  168-6  education and related skill training in Texas, except in programs
  168-7  where another entity is specifically authorized to do so under
  168-8  other law;
  168-9              (5)  prescribe and administer standards and accrediting
 168-10  policies for adult education;
 168-11              (6)  prescribe and administer rules and regulations for
 168-12  teacher certification for adult education; and
 168-13              (7)  accept and administer grants, gifts, services, and
 168-14  funds from available sources for use in adult education.
 168-15        (c)  Adult education programs shall be provided by public
 168-16  school districts, public junior colleges, <and> public
 168-17  universities, public nonprofit agencies, and community-based
 168-18  organizations approved in accordance with state statute and the
 168-19  regulations and standards adopted by the Texas Workforce Commission
 168-20  in conjunction with the State Board of Education.  The programs
 168-21  shall be designed to meet the education and training needs of
 168-22  adults to the extent possible within available public and private
 168-23  resources.  Bilingual education may be the method of instruction
 168-24  for students who do not function satisfactorily in English whenever
 168-25  it is appropriate for their optimum development.
 168-26        (d)  The Texas Workforce Commission <State Board of
 168-27  Education> may establish or designate an adult education advisory
  169-1  committee composed of no more than 21 members representing public
  169-2  and private nonprofit education, business, labor, minority groups,
  169-3  and the general public for the purpose of advising the commission
  169-4  <board> on needs, priorities, and standards of adult education
  169-5  programs conducted in accordance with this section of the Texas
  169-6  Education Code.
  169-7        (e)  Funds shall be appropriated to implement statewide adult
  169-8  basic education, adult bilingual education, high school
  169-9  equivalency, and high school credit programs to eliminate
 169-10  illiteracy in Texas and to implement and support a statewide
 169-11  program to meet the total range of adult needs for adult education,
 169-12  related skill training, and pilot programs to demonstrate the
 169-13  effectiveness of the community education concept.  The Texas
 169-14  Workforce Commission shall ensure that public local education
 169-15  agencies, public nonprofit agencies, and community-based
 169-16  organizations have direct and equitable access to those funds.  An
 169-17  additional sum of money may be appropriated to the Texas Workforce
 169-18  Commission <Department of Commerce> for the purpose of skill
 169-19  training in direct support of industrial expansion and start-up,
 169-20  and those locations, industries, and occupations designated by the
 169-21  Texas Workforce Commission <Department of Commerce>, when such
 169-22  training is also in support of the basic purposes of this section.
 169-23  To fulfill the basic purposes of this section, an additional sum of
 169-24  money may be appropriated for skill training that is conducted to
 169-25  support the expansion of civilian employment opportunities on
 169-26  United States military reservations.  The Central Education Agency,
 169-27  in conjunction with the Texas Workforce Commission <Department of
  170-1  Commerce>, may adopt rules to administer such skill training
  170-2  programs for which the Central Education Agency is responsible, and
  170-3  the Texas Workforce Commission <Department of Commerce> may adopt
  170-4  rules to administer such skill training programs for which the
  170-5  Texas Workforce Commission <it> is responsible.
  170-6        SECTION 11.32.  Section 16.152, Education Code, is amended by
  170-7  adding Subsection (p) to read as follows:
  170-8        (p)  From the total amount of funds appropriated for
  170-9  allotments under this section, the commissioner of education shall,
 170-10  in each year of the 1996-97 state fiscal biennium, withhold $16.3
 170-11  million or a greater amount as determined in the General
 170-12  Appropriations Act and distribute that amount for the Communities
 170-13  in Schools program under Chapter 305, Labor Code.  After deducting
 170-14  the amount withheld under this subsection from the total amount
 170-15  appropriated for the allotment under Subsection (a) of this
 170-16  section, the commissioner of education shall reduce each district's
 170-17  tier one allotments in the same manner described for a reduction in
 170-18  allotments under Section 16.254 of this code.  This subsection
 170-19  expires August 31, 1997.
 170-20        SECTION 11.33.  Section 32.11(5), Education Code, is amended
 170-21  to read as follows:
 170-22              (5)  "Administrator" means the executive director of
 170-23  the Texas Workforce Commission <State Commissioner of Education> or
 170-24  a person, knowledgeable in the administration of regulating
 170-25  proprietary schools, designated by that executive director <the
 170-26  Commissioner> to administer the provisions of this chapter.
 170-27        SECTION 11.34.  Section 32.12(c), Education Code, is amended
  171-1  to read as follows:
  171-2        (c)  If a State agency that issues a license or other
  171-3  authorization for the practice of an occupation elects not to
  171-4  regulate or approve course hours that exceed the minimum education
  171-5  requirements for the issuance of the license or other
  171-6  authorization, the licensing agency shall enter into a memorandum
  171-7  of understanding with the Texas Workforce Commission <Central
  171-8  Education Agency> for the regulation of those excess course hours
  171-9  under this chapter.  Any course taught under a letter of approval
 171-10  or other written authorization issued by the licensing agency
 171-11  before the effective date of the memorandum is authorized under
 171-12  State law until the course is reviewed by the Texas Workforce
 171-13  Commission <Central Education Agency>.  The licensing agency may
 171-14  terminate the memorandum of understanding on notice to the Texas
 171-15  Workforce Commission <Central Education Agency>.
 171-16        SECTION 11.35.  Section 32.21, Education Code, is amended to
 171-17  read as follows:
 171-18        Sec. 32.21.  WORKFORCE COMMISSION <CENTRAL EDUCATION AGENCY>.
 171-19  (a)  The Texas Workforce Commission <Central Education Agency>
 171-20  shall exercise jurisdiction and control of the system of schools,
 171-21  and it shall be the duty of the executive director of that
 171-22  commission <Commissioner of Education> to carry out supervision of
 171-23  the provisions of this chapter, and to enforce minimum standards
 171-24  for approval of schools under the operating regulations and
 171-25  policies hereinafter set forth and as may from time to time be
 171-26  adopted pursuant to the provisions of this chapter.
 171-27        (b)  The executive director of the Texas Workforce Commission
  172-1  <Central Education Agency> shall prepare a comparison of the cost
  172-2  to a student of courses of instruction or training programs at
  172-3  proprietary schools to the cost to a student of similar courses or
  172-4  programs at schools that are exempt from this chapter under Section
  172-5  32.12 of this code.
  172-6        (c)  The executive director of the Texas Workforce Commission
  172-7  <agency> may consult a recognized expert in a field of study for
  172-8  assistance in determining minimum program standards under this
  172-9  chapter for that field.
 172-10        (d)  The executive director of the Texas Workforce Commission
 172-11  <Central Education Agency> and the Texas Higher Education
 172-12  Coordinating Board shall adopt a memorandum of understanding which
 172-13  develops guidelines for coordinating the regulation of proprietary
 172-14  schools and courses that are subject to Sections 61.301 through
 172-15  61.317 and Chapter 32 of this code.   The memorandum shall include
 172-16  provisions which:
 172-17              (1)  clearly identify the responsibilities of each
 172-18  agency in regulating proprietary schools;
 172-19              (2)  ensure that the rules adopted by both agencies
 172-20  pursuant to the memorandum of understanding are not duplicative or
 172-21  in conflict; and
 172-22              (3)  establish procedures for ensuring that information
 172-23  affecting the proprietary school regulatory activities of both
 172-24  agencies is shared between the agencies.
 172-25        SECTION 11.36.  Section 32.24, Education Code, is amended to
 172-26  read as follows:
 172-27        Sec. 32.24.  DUTIES OF WORKFORCE COMMISSION AND EXECUTIVE
  173-1  DIRECTOR.  <ADMINISTRATOR.  (a)>  The executive director of the
  173-2  Texas Workforce Commission <administrator> shall carry out the
  173-3  policies of this chapter and enforce the rules and regulations
  173-4  adopted by that commission <the State Board of Education>.  The
  173-5  executive director <He> shall also certify the names of those
  173-6  schools meeting the requirements for a certificate of approval.
  173-7        <(b)  The administrator may adopt and enforce temporary rules
  173-8  and regulations pursuant to the provisions of this chapter but the
  173-9  temporary rules and regulations are valid only until the next
 173-10  meeting of the State Board of Education.>
 173-11        SECTION 11.37.  Section 32.25, Education Code, is amended to
 173-12  read as follows:
 173-13        Sec. 32.25.  MEMORANDUM OF UNDERSTANDING FOR REGULATION OF
 173-14  PROPRIETARY SCHOOLS.  (a)  The executive director of the Texas
 173-15  Workforce Commission <Central Education Agency> shall develop, in
 173-16  consultation with the Texas Guaranteed Student Loan Corporation and
 173-17  each state agency that regulates proprietary schools in this state,
 173-18  a comprehensive strategy to reduce default rates at the regulated
 173-19  proprietary schools and to improve the overall quality of the
 173-20  programs operated by these schools.
 173-21        (b)  The executive director of the commission <Central
 173-22  Education Agency> shall execute a memorandum of understanding
 173-23  outlining the strategy with the corporation and each state agency
 173-24  regulating proprietary schools and shall adopt rules to carry out
 173-25  its duties under this section.  The Texas Guaranteed Student Loan
 173-26  Corporation shall adopt the memorandum of understanding as
 173-27  procedures of the corporation, and each agency by rule shall adopt
  174-1  the memorandum of understanding.
  174-2        (c)  The memorandum of understanding shall:
  174-3              (1)  require the development and monitoring of
  174-4  indicators that identify schools that have excessive loan default
  174-5  rates, poor program performance, or both;
  174-6              (2)  require the sharing of specific information
  174-7  relating to the indicators between the Texas Workforce Commission
  174-8  <Central Education Agency> and the Texas Guaranteed Student Loan
  174-9  Corporation or other agency; and
 174-10              (3)  require the application of specific sanctions by
 174-11  the commission <Central Education Agency> or by the Texas
 174-12  Guaranteed Student Loan Corporation or other agency, as
 174-13  appropriate, to lower the default rates, improve program
 174-14  performance, or both.
 174-15        (d)  If the executive director of the commission <Central
 174-16  Education Agency> enters a memorandum of understanding with the
 174-17  Texas Guaranteed Student Loan Corporation related to the regulation
 174-18  of proprietary schools, the commission <agency> may require each
 174-19  proprietary school governed by this chapter to provide information
 174-20  to the commission <agency> that is necessary for the purposes of
 174-21  the memorandum of understanding.
 174-22        SECTION 11.38.  Section 32.32, Education Code, is amended to
 174-23  read as follows:
 174-24        Sec. 32.32.  APPLICATION FOR CERTIFICATE OF APPROVAL.  Every
 174-25  proprietary school desiring to operate in the State of Texas or do
 174-26  business in the State shall make written application to the
 174-27  administrator for a certificate of approval.  Such application
  175-1  shall be verified, be in such form as may be prescribed by the
  175-2  Texas Workforce Commission <State Board of Education>, and shall
  175-3  furnish the administrator such information as the executive
  175-4  director of the commission <he> may require.
  175-5        SECTION 11.39.  Section 32.321(a), Education Code, is amended
  175-6  to read as follows:
  175-7        (a)  The Texas Workforce Commission <State Board of
  175-8  Education> after consultation with the Proprietary School Advisory
  175-9  Commission may establish rules that waive, alter, suspend, or
 175-10  replace any of the following provisions governing small proprietary
 175-11  schools:
 175-12              (1)  the fee schedule authorized under Section 32.71 of
 175-13  this code, provided that fees under a fee schedule established by
 175-14  rule may not be less than the reasonable administrative cost for
 175-15  regulation or more than the amount that a small proprietary school
 175-16  would otherwise pay if it were not classified as a small
 175-17  proprietary school;
 175-18              (2)  participation in the proprietary school tuition
 175-19  protection fund required by Section 32.91 of this code;
 175-20              (3)  the refund policy provisions of Section 32.39 of
 175-21  this code;
 175-22              (4)  the bonding requirements of Section 32.38 of this
 175-23  code;
 175-24              (5)  the examination of a school for compliance under
 175-25  Section 32.34(f) of this code;
 175-26              (6)  the reporting requirements of Section 32.33(15)
 175-27  <32.33(o)> of this code; and
  176-1              (7)  the term for which a certificate of approval is
  176-2  issued under Section 32.34(b) of this code, provided that a rule
  176-3  adopted under this section may not provide for a term that exceeds
  176-4  three years or is less than one year.
  176-5        SECTION 11.40.  Section 32.33, Education Code, is amended to
  176-6  read as follows:
  176-7        Sec. 32.33.  CRITERIA.  The administrator may approve the
  176-8  application of a <such> proprietary school if <when> the school is
  176-9  found, on <upon> investigation at the premises of the school, to
 176-10  have met the following criteria:
 176-11              (1)  the <(a)  The> courses, curriculum, and
 176-12  instruction are of such quality, content, and length as may
 176-13  reasonably and adequately achieve the stated objective for which
 176-14  the courses, curriculum or instruction are offered; provided that
 176-15  before<.  Before> a school conducts a course of instruction in
 176-16  court reporting, the school must produce evidence that the school
 176-17  has obtained approval for the curriculum from the Court Reporters
 176-18  Certification Board;<.>
 176-19              (2)  the <(b)  There is in the> school has adequate
 176-20  space, equipment, instructional material and instructor personnel
 176-21  to provide training of good quality;<.>
 176-22              (3)  educational <(c)  Educational> and experience
 176-23  qualifications of directors, administrators and instructors are
 176-24  adequate;<.>
 176-25              (4)  the <(d)  The> school maintains a written record
 176-26  of the previous education and training of the applicant student and
 176-27  clearly indicates that appropriate credit has been given by the
  177-1  school for previous education and training, with the new training
  177-2  period shortened where warranted through use of appropriate skills
  177-3  or achievement tests and the student so notified;<.>
  177-4              (5)  a <(e)  A> copy of the following information is
  177-5  furnished to a student before enrollment:
  177-6                    (A)  a course outline;
  177-7                    (B)  a schedule of tuition, fees, <refund
  177-8  policy,> and other charges;
  177-9                    (C)  a statement of the school's refund policy;
 177-10                    (D)  a copy of regulations relating <pertaining>
 177-11  to absence, grading policy, <and> rules of operation and conduct,
 177-12  and<; regulations pertaining to> incomplete grades;
 177-13                    (E)  the name, mailing address, and telephone
 177-14  number of the Texas Workforce Commission <Central Education Agency>
 177-15  for the purpose of directing complaints to the commission <agency>;
 177-16                    (F)  the current rates of job placement and
 177-17  employment of students issued a certificate of completion; and
 177-18                    (G)  notification of the availability of the cost
 177-19  comparison information prepared under Section 32.21(b) of this code
 177-20  through the Texas Workforce Commission; <Central Education Agency
 177-21  will be furnished the student prior to enrollment.>
 177-22              (6)  except <(f)  Except> as provided by Section 32.40
 177-23  of this code, on completion of training, the student is given a
 177-24  certificate by the school indicating the course and that training
 177-25  was satisfactorily completed;<.>
 177-26              (7)  adequate <(g)  Adequate> records as prescribed by
 177-27  the administrator are kept to show attendance and progress or
  178-1  grades, and satisfactory standards relating to attendance, progress
  178-2  and conduct are enforced;<.>
  178-3              (8)  the <(h)  The> school complies with all local,
  178-4  city, county, municipal, state and federal regulations, such as
  178-5  fire, building and sanitation codes, and provides<.  The
  178-6  administrator may require such> evidence of compliance to the
  178-7  administrator as considered <is deemed> necessary by the
  178-8  administrator;<.>
  178-9              (9)  the <(i)  The> school is financially sound and
 178-10  capable of fulfilling its commitments for training;<.>
 178-11              (10)  the <(j)  The> school's administrators,
 178-12  directors, owners, and instructors are of good reputation and
 178-13  character;<.>
 178-14              (11)  the <(k)  The> school has, maintains, and
 178-15  publishes in its catalogue and enrollment contract<,> the proper
 178-16  policy for the refund of the unused portion of tuition, fees, and
 178-17  other charges in the event the student enrolled by the school fails
 178-18  to take the course or withdraws or is discontinued therefrom at any
 178-19  time prior to completion;<.>
 178-20              (12)  the <(l)  The> school does not utilize erroneous
 178-21  or misleading advertising, either by actual statement, omission, or
 178-22  intimation as determined by the Texas Workforce Commission; <State
 178-23  Board of Education.>
 178-24              (13)  additional <(m)  Such additional> criteria as
 178-25  <may be> required by the Texas Workforce Commission or the
 178-26  executive director of that commission; <State Board of Education.>
 178-27              (14)  the <(n)  The> school does not use a name like or
  179-1  similar to an existing tax supported school in the same area;<.>
  179-2              (15)  the <(o)  The> school furnishes to the Texas
  179-3  Workforce Commission <Central Education Agency> the current rates
  179-4  of students who receive a certificate of completion and of job
  179-5  placement and employment of students issued a certificate of
  179-6  completion;<.>
  179-7              (16)  the <(p)  The> school furnishes to the Texas
  179-8  Workforce Commission <Central Education Agency> for approval or
  179-9  disapproval student admission requirements for each course or
 179-10  program offered by the school;<.>
 179-11              (17)  the <(q)  The> school furnishes to the Texas
 179-12  Workforce Commission <Central Education Agency> for approval or
 179-13  disapproval the course hour lengths and curriculum content for each
 179-14  course offered by the school; and<.>
 179-15              (18)  the <(r)  The> school does not owe a civil
 179-16  penalty under Section 32.611 of this code.
 179-17        SECTION 11.41.  Sections 32.34(a) and (d), Education Code,
 179-18  are amended to read as follows:
 179-19        (a)  The executive director of the Texas Workforce Commission
 179-20  <administrator>, upon review of an application for a certificate of
 179-21  approval duly submitted in accordance with the provisions of
 179-22  Section 32.32 and meeting the requirements of Section 32.33 of this
 179-23  chapter, shall issue a certificate of approval to the applicant
 179-24  school.  The certificate of approval shall be in a form
 179-25  <recommended by the commission and> approved by the executive
 179-26  director <State Board of Education> and shall state in a clear and
 179-27  conspicuous manner at least the following information:
  180-1              (1)  date of issuance, effective date, and term of
  180-2  approval;
  180-3              (2)  correct name and address of the school;
  180-4              (3)  authority for approval and conditions of approval,
  180-5  if any, referring specifically to the approved catalogue or
  180-6  bulletin published by the school;
  180-7              (4)  signature of the administrator or such person as
  180-8  may have been designated by the executive director  <him> to
  180-9  administer the provisions of this chapter; and
 180-10              (5)  any other fair and reasonable representations that
 180-11  are consistent with this chapter and deemed necessary by the
 180-12  administrator.
 180-13        (d)  At least thirty (30) days prior to expiration of a
 180-14  certificate of approval, the school shall forward to the
 180-15  administrator an application for renewal.  The administrator shall
 180-16  reexamine the school at the premises of the school and either renew
 180-17  or cancel the school's certificate of approval.  If a school fails
 180-18  to file a complete application for renewal at least thirty (30)
 180-19  days before the expiration date of the certificate of approval, the
 180-20  school, as a condition of renewal, must pay, in addition to the
 180-21  annual renewal fee, a late renewal fee in an amount established by
 180-22  rule by the Texas Workforce Commission  <State Board of Education
 180-23  rule> of at least $100.
 180-24        SECTION 11.42.  Section 32.38(e), Education Code, is amended
 180-25  to read as follows:
 180-26        (e)  The administrator, for good cause shown, <as recommended
 180-27  by the commission and approved by the State Board of Education,>
  181-1  may waive and suspend the requirements set forth in Subsections (a)
  181-2  and (c) of this Section with respect to schools operating wholly or
  181-3  in part under a federal grant where no tuition fee is charged to
  181-4  the student.
  181-5        SECTION 11.43.  Sections 32.39(c) and (e), Education Code,
  181-6  are amended to read as follows:
  181-7        (c)  In lieu of the refund policy herein set forth, for
  181-8  programs of instruction not regularly offered to the general
  181-9  public, the Texas Workforce Commission <State Board of Education>
 181-10  may, for good cause shown, amend, modify, substitute and/or alter
 181-11  the terms of such policy due to the specialized nature and
 181-12  objective of the subject school's course of instruction.
 181-13        (e)  If a refund is not made within the period required by
 181-14  this section, the school shall pay a penalty. If the refund is made
 181-15  to a lending institution, the penalty shall also be paid to that
 181-16  institution and applied against the student's loan.  The executive
 181-17  director of the commission <commissioner of education> annually
 181-18  shall establish the level of the penalty at a level sufficient to
 181-19  provide a deterrent to the retention of student funds.  The
 181-20  executive director of the commission <Central Education Agency> may
 181-21  exempt a school from the payment of the penalty if the school makes
 181-22  a good faith effort to refund the tuition, fees, and other charges
 181-23  but is unable to locate the student.  The school shall provide to
 181-24  the executive director of the commission <the agency> on request
 181-25  documentation of the effort to locate the student.
 181-26        SECTION 11.44.  Section 32.401(b), Education Code, is amended
 181-27  to read as follows:
  182-1        (b)  A proprietary school may offer an applied technology
  182-2  degree, an occupational studies degree, or other degree approved by
  182-3  the Texas Workforce Commission in conjunction with the Central
  182-4  Education Agency.  The commission may not <Central Education Agency
  182-5  shall have no authority to> approve a degree title that uses
  182-6  "associate," "bachelor's," "master's," or "doctor's" in the title
  182-7  and shall consult with the Texas Higher Education Coordinating
  182-8  Board to ensure that the titles of degrees approved by the
  182-9  commission <agency> are distinctly different from the titles of
 182-10  degrees approved by the board.
 182-11        SECTION 11.45.  Section 32.402(d), Education Code, is amended
 182-12  to read as follows:
 182-13        (d)  The authority of a school to operate under a small
 182-14  proprietary school certificate of approval terminates on the final
 182-15  determination of issuance or denial of an initial certificate of
 182-16  approval.  If a school fails to file a complete application within
 182-17  the period required by Subsection (b) of this section, the school,
 182-18  as a condition of issuance, must pay a late fee in an amount
 182-19  established by rule by the Texas Workforce Commission <State Board
 182-20  of Education rule> of at least $100.
 182-21        SECTION 11.46.  Section 32.42(d), Education Code, is amended
 182-22  to read as follows:
 182-23        (d)  Upon the filing of the lawsuit, citation shall be served
 182-24  upon the administrator.  Whereupon, the administrator shall cause
 182-25  to be made a complete record of all proceedings had before the
 182-26  administrator, and shall certify a copy of the proceedings to the
 182-27  Court.  Trial before the Court shall be upon the basis of the
  183-1  record made before the administrator, and the Court shall make its
  183-2  decision based upon the record.  The administrator's decision shall
  183-3  be affirmed by the Court if the Court finds substantial evidence in
  183-4  the record to justify the decision, unless the Court finds the
  183-5  order to be:
  183-6              (1)  arbitrary and capricious, or
  183-7              (2)  in violation of the Constitution or laws of the
  183-8  State of Texas, or
  183-9              (3)  in violation of rules adopted by the Texas
 183-10  Workforce Commission under this chapter <and regulations
 183-11  promulgated by the State Board of Education pursuant to the
 183-12  provisions of the Act>.
 183-13        SECTION 11.47.  Section 32.612, Education Code, is amended to
 183-14  read as follows:
 183-15        Sec. 32.612.  COMPETITIVE BIDDING; ADVERTISING.  The Texas
 183-16  Workforce Commission <State Board of Education> may not adopt rules
 183-17  to restrict competitive bidding or advertising by a proprietary
 183-18  school except to prohibit false, misleading, or deceptive
 183-19  competitive bidding or advertising practices.  Those rules may not
 183-20  restrict:
 183-21              (1)  the use of an advertising medium;
 183-22              (2)  the size or duration of an advertisement; or
 183-23              (3)  advertisement under a trade name.
 183-24        SECTION 11.48.  Section 32.63(b), Education Code, is amended
 183-25  to read as follows:
 183-26        (b)  The attorney general, at the request of the Texas
 183-27  Workforce Commission <Central Education Agency>, may bring a civil
  184-1  action to collect a civil penalty under this section.
  184-2        SECTION 11.49.  Section 32.64, Education Code, is amended to
  184-3  read as follows:
  184-4        Sec. 32.64.  SANCTIONS.  (a)  If the Texas Workforce
  184-5  Commission <Central Education Agency> has reasonable cause to
  184-6  believe that a proprietary school has violated this chapter or a
  184-7  rule adopted under this chapter, the commission or the executive
  184-8  director of the commission <agency> may:
  184-9              (1)  order a peer review of the school; or
 184-10              (2)  suspend the admission of students to the school.
 184-11        (b)  A peer review ordered under this section shall be
 184-12  conducted by a peer review team composed of knowledgeable persons
 184-13  selected by the executive director of the commission <agency>.  The
 184-14  executive director <agency> shall attempt to provide a balance on
 184-15  each team between members assigned to the team who are from this
 184-16  state and those who are from other states.  The team shall provide
 184-17  the commission and the executive director <agency> with an
 184-18  objective assessment of the content of the school's curriculum and
 184-19  its application.  The costs of providing a peer review team shall
 184-20  be paid by the school.
 184-21        SECTION 11.50.  Sections 32.71(a)-(e), Education Code, are
 184-22  amended to read as follows:
 184-23        (a)  Certificate and registration fees, except those charged
 184-24  pursuant to Subsection (d) of this section, shall be collected by
 184-25  the executive director of the Texas Workforce Commission
 184-26  <Administrator> and deposited with the State Treasurer.  Each fee
 184-27  shall be in an amount set by the executive director <Administrator>
  185-1  and approved by the commission <State Board of Education> in an
  185-2  amount not to exceed 150 percent of each fee in the following
  185-3  schedule:
  185-4              (1)  the initial fee for a school:
  185-5                    (A)  for a certificate of approval is $2,000; or
  185-6                    (B)  for a small proprietary school certificate
  185-7  of approval is $1,000;
  185-8              (2)  the first renewal fee and each subsequent renewal
  185-9  fee for a school is the greater of:
 185-10                    (A)  an amount that is determined by applying a
 185-11  percentage, not to exceed 0.3 percent, to the gross tuition and
 185-12  fees, excluding refunds as provided by Section 32.39 of this code,
 185-13  of the school; or
 185-14                    (B)  $500;
 185-15              (3)  the initial registration fee for a representative
 185-16  is $60;
 185-17              (4)  the annual renewal fee for a representative is
 185-18  $30;
 185-19              (5)  the fee for a change of a name of a school or
 185-20  owner is $100;
 185-21              (6)  the fee for a change of an address of a school is
 185-22  $180;
 185-23              (7)  the fee for a change in the name or address of a
 185-24  representative or a change in the name or address of a school that
 185-25  causes the reissuance of a representative permit is $10;
 185-26              (8)  the application fee for an additional course is
 185-27  $150, except for seminar and workshop courses, for which the fee is
  186-1  $25;
  186-2              (9)  the application fee for a director, administrative
  186-3  staff member, or instructor is $15;
  186-4              (10)  the application fee for the authority to grant
  186-5  degrees is $2,000;
  186-6              (11)  the application fee for an additional degree
  186-7  course is $250; and
  186-8              (12)  the fee for an inspection required by rule of the
  186-9  commission <State Board of Education> of classroom facilities that
 186-10  are separate from the main campus is $250.
 186-11        (b)  The executive director <commissioner of  education>
 186-12  shall periodically review and recommend adjustments in the level of
 186-13  fees to the <State Board of Education and the> legislature.
 186-14        (c)  For purposes of this section, the gross amount of annual
 186-15  student fees and tuition for a proprietary school is the amount
 186-16  determined by the executive director <State Board of Education>
 186-17  based on any report submitted by the school to the commission
 186-18  <Central Education Agency> or other information obtained by the
 186-19  commission <agency>.
 186-20        (d)  In connection with the regulation of any school or
 186-21  course through a memorandum of understanding pursuant to Section
 186-22  32.12(c) of this code, the executive director <Administrator> shall
 186-23  set an application and annual renewal fee, not to exceed $2,000.
 186-24  The fee shall be approved by the commission <State Board of
 186-25  Education> to be an amount reasonably calculated to cover the
 186-26  administrative costs associated with assuming the additional
 186-27  regulation.
  187-1        (e)  The fee for an investigation at a school to resolve a
  187-2  complaint filed against the school is $400.  The fee may be charged
  187-3  only if:
  187-4              (1)  the complaint could not have been resolved by
  187-5  telephone or written correspondence only;
  187-6              (2)  a representative of the commission  <Central
  187-7  Education Agency> visits the school as a part of the complaint
  187-8  resolution process; and
  187-9              (3)  the school is found to be at fault.
 187-10        SECTION 11.51.  Section 32.81(a), Education Code, is amended
 187-11  to read as follows:
 187-12        (a)  The cost of administration of this Chapter shall be
 187-13  included in the State budget allowance for the Texas Workforce
 187-14  Commission <State Board of Education>.
 187-15        SECTION 11.52.  Sections 32.91(a), (c), and (d), Education
 187-16  Code, are amended to read as follows:
 187-17        (a)  Except as provided by Subsection (e) of this section, at
 187-18  the time that each school pays its annual renewal fee, in the years
 187-19  provided by Subsection (c) of this section, the Texas Workforce
 187-20  Commission <State Board of Education> shall also collect a fee from
 187-21  the school for deposit to the credit of a special fund in the state
 187-22  treasury to be called the proprietary school tuition protection
 187-23  fund.
 187-24        (c)  <Beginning on January 1, 1990, the board shall collect
 187-25  the fee for two years.>  If on January 1, 1993, or any subsequent
 187-26  year the amount in the fund is less than $200,000, the Texas
 187-27  Workforce Commission <board> shall collect a fee during that year
  188-1  by applying a percentage to each school's annual renewal fee at a
  188-2  rate that will bring the balance of the fund to $250,000.
  188-3        (d)  The state treasurer shall invest the fund in the same
  188-4  manner as other state funds.  Sufficient funds from the tuition
  188-5  protection fund shall be appropriated to the Texas Workforce
  188-6  Commission <Central Education Agency administration> for the
  188-7  purpose outlined in this section.
  188-8        SECTION 11.53.  Section 32.92(a), Education Code, is amended
  188-9  to read as follows:
 188-10        (a)  If a proprietary school closes, the Texas Workforce
 188-11  Commission <Central Education Agency> shall attempt to arrange for
 188-12  students of the closed school to attend another proprietary school.
 188-13        SECTION 11.54.  Section 33.01(7), Education Code, is amended
 188-14  to read as follows:
 188-15              (7)  "Commission" means the Texas Workforce Commission
 188-16  <"CEA" means the Central Education Agency>.
 188-17        SECTION 11.55.  Section 33.02(a), Education Code, is amended
 188-18  to read as follows:
 188-19        (a)  Pursuant to the provisions of this chapter, the Texas
 188-20  Workforce Commission <commissioner of education> may allocate state
 188-21  funds for the support of apprenticeship training programs that meet
 188-22  the criteria set forth in this chapter.
 188-23        SECTION 11.56.  Section 33.04, Education Code, is amended to
 188-24  read as follows:
 188-25        Sec. 33.04.  NOTICE OF AVAILABLE FUNDS.  In order to ensure
 188-26  <insure> that all citizens of this state <Texas> have an equal
 188-27  opportunity to benefit from apprenticeship training programs, the
  189-1  commission <State Board of Vocational Education> shall provide for
  189-2  statewide publication in a manner recommended by the advisory
  189-3  committee and intended to give actual notice to all potential
  189-4  program sponsors of the amount of funds that will be available to
  189-5  support apprenticeship training programs during the current and
  189-6  following fiscal years, the qualifications required of program
  189-7  sponsors and apprenticeship committees, and the procedures to be
  189-8  followed in applying for state funds.  The notice may also include
  189-9  other information recommended by the advisory committee and
 189-10  approved by the State Board of Vocational Education.
 189-11  Notwithstanding the foregoing, the commission <State Board of
 189-12  Vocational Education> shall publish any information concerning
 189-13  available funds given to a particular program sponsor in a manner
 189-14  recommended by the advisory committee and intended to give actual
 189-15  notice to all potential program sponsors statewide.
 189-16        SECTION 11.57.  Sections 33.07(a) and (d), Education Code,
 189-17  are amended to read as follows:
 189-18        (a)  The commission <CEA> shall maintain a clear audit trail
 189-19  of all funds appropriated for the apprenticeship system of adult
 189-20  vocational education.  For each course that is funded, the audit
 189-21  trail in the commission <CEA> shall include the following records:
 189-22              (1)  the name of the sponsoring public school district
 189-23  or state postsecondary institution;
 189-24              (2)  the name of the instructor;
 189-25              (3)  the number of students enrolled;
 189-26              (4)  the place and schedule of class meetings; and
 189-27              (5)  certification by the BAT for preparatory and
  190-1  related instruction courses that the students enrolled were
  190-2  registered apprentices.
  190-3        (d)  All state funds appropriated to the commission under
  190-4  <Central Education Agency pursuant to> this chapter are subject to
  190-5  audit by the state auditor in accordance with Chapter 321,
  190-6  Government Code.  Funds received under <pursuant to> this chapter
  190-7  by a school district or postsecondary institution are subject to
  190-8  audit as otherwise provided by law.
  190-9        SECTION 11.58.  Section 33.08, Education Code, is amended to
 190-10  read as follows:
 190-11        Sec. 33.08.  APPROPRIATION AND DISTRIBUTION OF FUNDS.
 190-12  (a)  On recommendation of the advisory committee the State Board of
 190-13  Vocational Education, in conjunction with the commission, shall
 190-14  adopt formulas and administrative procedures to be used in
 190-15  requesting appropriations of state funds as a budgetary line item
 190-16  for the Apprenticeship System of Adult Vocational Education.
 190-17        (b)  The commission <CEA> shall prepare an update to the
 190-18  Apprenticeship Related Instruction Cost Study adopted by the State
 190-19  Board of Education on February 10, 1973, prior to each biennial
 190-20  session of the legislature.
 190-21        (c)  On recommendation of the advisory committee the State
 190-22  Board of Vocational Education, in conjunction with the commission,
 190-23  shall adopt forms, formulas, and administrative procedures for the
 190-24  distribution of available funds to apprenticeship training
 190-25  programs.  Distribution formulas must be uniform in application to
 190-26  all local program sponsors.
 190-27        (d)  On recommendation of the advisory committee the State
  191-1  Board of Vocational Education, in conjunction with the commission,
  191-2  shall reserve until December 1 of each year a percentage of the
  191-3  funds appropriated under the line item described in this section to
  191-4  be used solely for apprenticeship-related instruction programs.
  191-5  This percentage shall be established by the formulas required by
  191-6  this section.  Reserved funds that are not obligated on December 1
  191-7  may be used for preparatory and supplementary instruction programs
  191-8  as well as related instruction programs.
  191-9        (e)  No funds shall be distributed to a public school
 191-10  district or state postsecondary institution until the district or
 191-11  institution has filed all reports required by this chapter, <and
 191-12  by> the State Board of Vocational Education, and the commission.
 191-13        SECTION 11.59.  Section 33.09, Education Code, is amended to
 191-14  read as follows:
 191-15        Sec. 33.09.  RULES.  The State Board of Vocational Education,
 191-16  in conjunction with the commission, shall promulgate rules
 191-17  necessary to implement the provisions of this chapter.
 191-18        SECTION 11.60.  Section 33.10(a), Education Code, is amended
 191-19  to read as follows:
 191-20        (a)  Recommendations of the advisory committee submitted to
 191-21  the State Board of Vocational Education or the commission must be
 191-22  acted on, and either accepted or rejected.
 191-23        SECTION 11.61.  Section 481.026, Government Code, is amended
 191-24  to read as follows:
 191-25        Sec. 481.026.  <DUTIES OF> LITERACY <COUNCIL; INTERAGENCY
 191-26  WORK GROUP>.  (a)  In this section, "council" means the Council on
 191-27  Workforce and Economic Competitiveness.
  192-1        (b)  The council <Texas Literacy Council> shall:
  192-2              (1)  advise the governor, the Texas Workforce
  192-3  Commission <State Job Training Coordinating Council>, the State
  192-4  Board of Education, the Texas Higher Education Coordinating Board,
  192-5  and any group interested in literacy on policy, planning, research,
  192-6  and program development;
  192-7              (2)  coordinate the development and maintenance of a
  192-8  literacy services delivery system;
  192-9              (3)  oversee the attainment of the state's literacy
 192-10  goals;
 192-11              (4)  build a partnership with the private sector in
 192-12  order to inform the objectives-setting process and to gain
 192-13  acceptance of the services of a functional literacy program;
 192-14              (5)  provide state leadership to encourage and support
 192-15  local and statewide literacy efforts;
 192-16              (6)  <advise the State Board of Education on needs,
 192-17  priorities, and standards of adult literacy education programs
 192-18  conducted in accordance with Section 11.18, Education Code;>
 192-19              <(7)>  advocate the importance of literacy to ensure
 192-20  that all in need of assistance understand the benefits of increased
 192-21  functional literacy and to ensure that the necessary resources are
 192-22  available;
 192-23              (7) <(8)>  make literacy instruction available to
 192-24  adults and out-of-school youth by ensuring that a comprehensive
 192-25  literacy instruction capacity is present in every Texas community;
 192-26              (8) <(9)>  coordinate and improve local literacy
 192-27  instruction to ensure the most efficient and effective use of
  193-1  resources to meet adult education goals;
  193-2              (9) <(10)>  identify state and local literacy programs
  193-3  and enter them in a directory for centralized referral and
  193-4  communication;
  193-5              (10) <(11)>  continue oversight of literacy needs
  193-6  analysis;
  193-7              (11) <(12)>  continue to develop an awareness campaign;
  193-8              (12) <(13)>  develop a timetable and objectives for
  193-9  reaching the proposed goals and subgoals; and
 193-10              (13) <(14)>  make recommendations to the governor,
 193-11  lieutenant governor, and speaker of the house of representatives or
 193-12  other state officials or organizations that it considers
 193-13  appropriate regarding the expenditure of funds and the
 193-14  administration of programs.
 193-15        <(b)  An interagency work group is created to advise the
 193-16  council.  The advisory work group is composed of representatives
 193-17  from the Central Education Agency, Texas State Library and Archives
 193-18  Commission, Texas Higher Education Coordinating Board, Texas
 193-19  Employment Commission, Texas Department of Corrections, Texas
 193-20  Department of Human Services, Texas Rehabilitation Commission,
 193-21  Advisory Council for Technical Vocational Education, and State Job
 193-22  Training Coordinating Council.>
 193-23        <(c)  The council shall, with advice from the advisory work
 193-24  group, develop, adopt, and present to the 72nd Legislature a
 193-25  five-year strategic plan for comprehensive Texas literacy efforts.
 193-26  The plan must include:>
 193-27              <(1)  identification of all money from private, local,
  194-1  and federal sources available for investment in state and community
  194-2  literacy programs;>
  194-3              <(2)  proposals for acquiring local, state, and federal
  194-4  money identified in A Guide to Adult Literacy Funds and Resources
  194-5  to provide maximum support for state and community programs;>
  194-6              <(3)  proposals for coordination of state government
  194-7  resources, planning, and personnel among the agencies advising the
  194-8  council, to ensure, within budget constraints and consistent with
  194-9  existing missions, general access to state support services for
 194-10  community programs;>
 194-11              <(4)  identification of program shortages and gaps in
 194-12  service delivery, and proposals to establish a comprehensive
 194-13  service delivery system for all regions of the state and all target
 194-14  populations;>
 194-15              <(5)  an appropriate balance in recommended funding and
 194-16  support services for both adult literacy training and early student
 194-17  intervention, to ensure development of a continuum of literacy
 194-18  training services targeted at family needs;>
 194-19              <(6)  a discussion of evaluation tools used to measure
 194-20  student and program performance, in order to assure policymakers of
 194-21  concrete achievements and accountability for public funds; and>
 194-22              <(7)  other items that should be included in the
 194-23  judgment of the council.>
 194-24        (c) <(d)>  The department may award literacy grants out of
 194-25  state, local, federal, and private money available to the
 194-26  department for that purpose.  Grants shall be awarded under
 194-27  guidelines set by the Texas Workforce Commission <council>.  The
  195-1  guidelines shall include a competitive request for proposal process
  195-2  that includes<, designed by the council with the assistance of its
  195-3  advisory work group.  The process shall include> criteria for
  195-4  evaluating the proposals.
  195-5        (d) <(e)>  The department <council> may establish a Texas
  195-6  literacy trust fund for the purpose of collecting private funds for
  195-7  distribution to community literacy programs.  The fund must meet
  195-8  all applicable requirements under state and federal law necessary
  195-9  for qualification as a nonprofit trust. The fund, if established,
 195-10  shall be a separate fund kept and held in escrow and in trust by
 195-11  the state treasurer for and on behalf of the department <council>
 195-12  as funds held outside the treasury under Section 404.073.  Unless
 195-13  prohibited by other law, the state treasurer may invest and
 195-14  reinvest the money, pending its use, in the fund in investments
 195-15  authorized by law for state funds that the state treasurer
 195-16  considers appropriate.  The department shall distribute money from
 195-17  the fund under guidelines set by the Texas Workforce Commission
 195-18  <council>.
 195-19        SECTION 11.62.  Section 501.095(b), Government Code, is
 195-20  amended to read as follows:
 195-21        (b)  An agency of the state not listed in this section
 195-22  <subsection> that determines that it may provide services to
 195-23  inmates with a history of chronic unemployment may participate in
 195-24  the development of the memorandum, if the parties listed in this
 195-25  section <subsection> approve the agency's participation.
 195-26        SECTION 11.63.  Section 31.012, Human Resources Code, is
 195-27  amended by adding Subsection (d) to read as follows:
  196-1        (d)  A state program operated under this section shall be
  196-2  administered by the division of workforce development of the Texas
  196-3  Workforce Commission when the program is transferred to that
  196-4  commission.
  196-5        SECTION 11.64.  Section 44.001, Human Resources Code, is
  196-6  amended to read as follows:
  196-7        Sec. 44.001.  Designated Agency.  The Texas Workforce
  196-8  Commission <department> is the state agency designated to
  196-9  administer a day-care program established by federal law and
 196-10  financed partially or totally by federal funds.
 196-11        SECTION 11.65.  Sections 44.002(a), (c), and (d), Human
 196-12  Resources Code, are amended to read as follows:
 196-13        (a)  The Texas Workforce Commission <commissioner> shall
 196-14  promulgate rules to carry out the administrative provisions of the
 196-15  program consistent with federal law and regulations.
 196-16        (c)  The rules must establish procedures for input by the
 196-17  parents of the children in a day-care center into the operation of
 196-18  the center.  Where programs have more than 30 percent of their
 196-19  licensed capacity purchased by the commission <department>, these
 196-20  procedures must include the establishment of ongoing parent
 196-21  advisory committees that regularly meet and review day-care center
 196-22  operations.
 196-23        (d)  The executive director of the commission <commissioner>
 196-24  may promulgate eligibility standards for admittance into the
 196-25  program, but the standards must allow for exceptions where
 196-26  necessary to maintain family self-sufficiency and integrity.  The
 196-27  exceptions must be reviewed biannually by the commission
  197-1  <department> with opportunity provided for public input.  The
  197-2  initial exceptions and any revisions must be published in the Texas
  197-3  Register.
  197-4        SECTION 11.66.  Section 44.003, Human Resources Code, is
  197-5  amended to read as follows:
  197-6        Sec. 44.003.  Administration of Federal-Local Program.
  197-7  (a)  If the program is to be funded through political subdivisions
  197-8  of the state or local agencies approved by the commission
  197-9  <department> matching federal grants, the commission <department>
 197-10  shall promulgate procedures for effective delivery of services
 197-11  consistent with this section and with federal law and regulations.
 197-12        (b)  If the services are provided through contracting with
 197-13  operators of day-care programs on request from political
 197-14  subdivisions or local agencies, the commission <department> may not
 197-15  promulgate standards for selection of the type of programs more
 197-16  restrictive than required by federal law or regulations.
 197-17        (c)  The executive director of the commission <department>
 197-18  shall establish an accounting system consistent with federal law
 197-19  and regulations which will provide that an operator of a day-care
 197-20  program contracting with the commission <department>:
 197-21              (1)  shall receive prepayment in accordance with
 197-22  policies and procedures mutually agreed on by the state comptroller
 197-23  of public accounts and the commission <department>; and
 197-24              (2)  shall be paid on the basis of legitimate and
 197-25  reasonable expenses, insofar as possible, given federal regulations
 197-26  and department policy, instead of being paid on the basis of the
 197-27  number of children attending or the number of children enrolled in
  198-1  the program, provided that on being monitored by the commission
  198-2  <department>, the contracting operator can substantiate that there
  198-3  were sufficient preparations in the development of the services
  198-4  offered.
  198-5        (d)  The executive director of the commission <department>
  198-6  shall establish procedures for hearing complaints by operators of
  198-7  day-care programs contracting with the commission <department>
  198-8  relating to the failure of the commission <department> to comply
  198-9  with Subsection (c) of this section.
 198-10        SECTION 11.67.  Section 44.031, Human Resources Code, is
 198-11  amended to read as follows:
 198-12        Sec. 44.031.  Establishment.  (a)  The commission
 198-13  <department> may establish day-care centers for all children who
 198-14  qualify for services under Section 44.032 of this code.  Where in
 198-15  the opinion of the executive director of the commission
 198-16  <department> it appears feasible for the furtherance of the
 198-17  objectives of this legislation, the commission <department> may
 198-18  establish cooperative agreements with other state agencies.
 198-19        (b)  The commission <department> is not required to establish
 198-20  a day-care center or to provide services under this subchapter
 198-21  unless funds are appropriated for that purpose.
 198-22        SECTION 11.68.  Sections 44.032(a) and (b), Human Resources
 198-23  Code, are amended to read as follows:
 198-24        (a)  Except as provided by Subsection (b) of this section, to
 198-25  be eligible for admission to a day-care center authorized under
 198-26  this subchapter, a child must be at least six weeks of age and:
 198-27              (1)  the child must be eligible for state assistance
  199-1  under the aid to families with dependent children program and the
  199-2  child's caretaker must be employed, enrolled in a
  199-3  <department-authorized> job training program authorized by the
  199-4  Texas Workforce Commission, registered to work by that commission
  199-5  <the Texas Employment Commission>, or permanently and totally
  199-6  disabled; or
  199-7              (2)  the child must be from a family eligible under
  199-8  federal law or regulations to participate in a partially or totally
  199-9  federally funded welfare or social services program.
 199-10        (b)  Additional children of the same age group may also be
 199-11  admitted to a center under additional standards established by the
 199-12  commission <commissioner>.
 199-13        SECTION 11.69.  Section 44.034, Human Resources Code, is
 199-14  amended to read as follows:
 199-15        Sec. 44.034.  Standards; Recommendations.  (a)  If the Texas
 199-16  Workforce Commission <department> establishes day-care centers
 199-17  under this subchapter, the department shall prescribe standards of
 199-18  operation and performance for the centers that will ensure proper
 199-19  nutrition, social adjustment, health services, and appropriate
 199-20  growth and development for children admitted.
 199-21        (b)  The executive director of the commission <department>
 199-22  shall <also> prescribe procedures for receiving recommendations
 199-23  relating to the operation of the centers from parents, guardians,
 199-24  or custodians of children admitted to the centers, operators of the
 199-25  centers, and other interested persons.
 199-26        SECTION 11.70.  Sections 44.035(a), (c), and (d), Human
 199-27  Resources Code, are amended to read as follows:
  200-1        (a)  The executive director of the Texas Workforce Commission
  200-2  <department> may contract for services authorized under this
  200-3  subchapter with an individual, organization, association, or
  200-4  corporation meeting the standards established under Section 44.034
  200-5  of this code and the standards for child-care facilities licensed
  200-6  by the department.
  200-7        (c)  The executive director of the commission <department>
  200-8  shall terminate a contract with a day-care center that fails to
  200-9  maintain the department's standards.
 200-10        (d)  When the executive director of the commission
 200-11  <department> intends to cancel a <its> contract with a day-care
 200-12  center, the executive director <department> shall give the center
 200-13  reasonable notice and an opportunity for a hearing if one is
 200-14  requested.  The commission <department> shall adopt rules
 200-15  consistent with Chapter 2001, Government Code, <the Administrative
 200-16  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
 200-17  Civil Statutes)> to implement this section.  Hearings under this
 200-18  section are contested cases under that chapter <Act>.
 200-19        SECTION 11.71.  Section 44.036, Human Resources Code, is
 200-20  amended to read as follows:
 200-21        Sec. 44.036.  Annual Evaluation of Day-Care Centers.  If the
 200-22  commission <department> establishes day-care centers or provides
 200-23  services under this subchapter, the commission, with the assistance
 200-24  of the department, shall evaluate the performance of the centers
 200-25  each state fiscal year.  This evaluation shall be sent to the
 200-26  governor and to the Legislative Budget Board not later than the
 200-27  100th day after the last day of the state fiscal year covered by
  201-1  the evaluation.
  201-2        SECTION 11.72.  Sections 44.061(f) and (g), Human Resources
  201-3  Code, are amended to read as follows:
  201-4        (f)  The committee shall advise and assist the department and
  201-5  the Texas Workforce Commission in developing coordinated state
  201-6  policies for the use of federal and state funds in child-care
  201-7  programs, including policies relating to the:
  201-8              (1)  review of any state plan required for the use of
  201-9  federal or state funds;
 201-10              (2)  development of a coordinated and comprehensive
 201-11  training program for child-care providers;
 201-12              (3)  establishment of guidelines providing technical
 201-13  assistance to child-care providers, including loans, grants, or
 201-14  training;
 201-15              (4)  development of a quality improvement program for
 201-16  federal and state funded child-care services;
 201-17              (5)  review of public access to current child-care
 201-18  services, with special emphasis placed on special needs populations
 201-19  and localities of the state with limited child-care programs;
 201-20              (6)  development of consumer education programs related
 201-21  to the access and selection of child-care services;
 201-22              (7)  review of appropriations to child-care programs;
 201-23              (8)  review of expenditures of child-care programs; and
 201-24              (9)  review of state efforts to maximize access to
 201-25  federal child-care funding.
 201-26        (g)  The committee shall review child-care policies and
 201-27  programs for compliance with applicable guidelines and shall advise
  202-1  the board, the commission, and the department on the results of the
  202-2  review.
  202-3        SECTION 11.73.  Sections 101.023(b) and (c), Human Resources
  202-4  Code, are amended to read as  follows:
  202-5        (b)  The Texas Workforce Commission <department> may
  202-6  establish and administer a community program for persons 55 years
  202-7  of age or older who lack suitable employment and have family
  202-8  incomes under federal poverty guidelines.
  202-9        (c)  The Texas Workforce Commission <department> may contract
 202-10  with a public agency or a private, nonprofit organization with
 202-11  experience in managing similar programs to employ persons under
 202-12  this program in providing recreation, beautification, conservation,
 202-13  or restoration services, or public service employment positions for
 202-14  state, county, city, or regional governments or school districts.
 202-15  The Texas Workforce Commission <department> may not contract with
 202-16  an organization that is not a subscriber under the state workers'
 202-17  compensation law or that does not pay the federal minimum wage rate
 202-18  or the prevailing wage rate for the particular job, whichever is
 202-19  greater.
 202-20        SECTION 11.74.  The following are repealed:
 202-21              (1)  Section 11.18(b)(4), Education Code, as amended by
 202-22  Chapter 812, Acts of the 71st Legislature, Regular Session, 1989;
 202-23  and
 202-24              (2)  Section 32.22, Education Code.
 202-25        SECTION 11.75.  (a)  The three-member Texas Employment
 202-26  Commission is abolished on September 1, 1995.  A person serving as
 202-27  a member of the Texas Employment Commission on August 31, 1995,
  203-1  serves as a member of the Texas Workforce Commission until the date
  203-2  on which the governor appoints a person with the corresponding
  203-3  proper qualifications to the Texas Workforce Commission.  A person
  203-4  serving as a member of the Texas Employment Commission on August
  203-5  31, 1995, is eligible for appointment by the governor to the Texas
  203-6  Workforce Commission.  The governor shall appoint the initial
  203-7  members of the Texas Workforce Commission not later than September
  203-8  30, 1995, as follows:
  203-9              (1)  the member who represents employers for a term
 203-10  expiring February 1, 1997;
 203-11              (2)  the member who represents labor for a term
 203-12  expiring February 1, 1999; and
 203-13              (3)  the member who represents the public for a term
 203-14  expiring February 1, 2001.
 203-15        (b)  The executive director of the Texas Workforce Commission
 203-16  shall determine, on a program-by-program basis, the date on which a
 203-17  program administered by the Texas Employment Commission on August
 203-18  31, 1995, shall be transferred to the Texas Workforce Commission,
 203-19  and the date on which a program listed under Section 302.021, Labor
 203-20  Code, as added by this article, and administered by another state
 203-21  agency on August 31, 1995, shall be transferred to the Texas
 203-22  Workforce Commission.  The transfer under this subsection may begin
 203-23  on the date on which the executive director is appointed.
 203-24        (c)  The programs administered by the Texas Employment
 203-25  Commission as of August 31, 1995, shall remain administratively
 203-26  distinct from the programs operated by the Texas Workforce
 203-27  Commission until those employment agency programs are transferred
  204-1  to the Texas Workforce Commission as provided by Subsection (b) of
  204-2  this section.  The Texas Workforce Commission shall operate the
  204-3  employment agency programs as programs of the Texas Employment
  204-4  Commission until the transfer is completed and may refer to itself
  204-5  as the "Texas Employment Commission" with regard to those programs
  204-6  and actions taken in relation to those programs until the transfer
  204-7  of all Texas Employment Commission programs is completed.
  204-8        (d)  All money, records, property, and equipment in the
  204-9  custody of a program administered by the Texas Employment
 204-10  Commission on August 31, 1995, or otherwise transferred under
 204-11  Section 302.021, Labor Code, as added by this article, shall be
 204-12  transferred to the custody of the Texas Workforce Commission on the
 204-13  earlier of the 30th day after the date on which the program is
 204-14  transferred to the Texas Workforce Commission or September 30,
 204-15  1996, or September 30, 1997, for the child-care services program
 204-16  operated under Chapter 44, Human Resources Code, as amended by this
 204-17  article.  A person employed by a program becomes an employee of the
 204-18  Texas Workforce Commission on the date on which the transfer of the
 204-19  program to the Texas Workforce Commission is completed.
 204-20        (e)  A reference in a law or administrative rule to an agency
 204-21  that as of August 31, 1995, administered a program transferred to
 204-22  the Texas Workforce Commission means the Texas Workforce
 204-23  Commission.
 204-24        (f)  The transfer of all affected programs shall be made as
 204-25  soon as practicable.  The transfer of the child-care services
 204-26  program operated under Chapter 44, Human Resources Code, as amended
 204-27  by this article,  shall be completed not later than September 1,
  205-1  1997.  The transfer of all other affected programs shall be
  205-2  completed not later than September 1, 1996.
  205-3        (g)  Any appropriation made to the Texas Employment
  205-4  Commission or to another state agency for the administration of a
  205-5  program transferred under this section for the state fiscal
  205-6  biennium ending August 31, 1997, is transferred to the Texas
  205-7  Workforce Commission on the date on which the program is
  205-8  transferred to the Texas Workforce Commission.
  205-9        (h)  On and after September 1, 1995, a reference in any law
 205-10  to the Texas Employment Commission means the Texas Workforce
 205-11  Commission, except as provided by this section.
 205-12        SECTION 11.76.  (a)  The comptroller shall conduct a
 205-13  management study to review the smart jobs fund program created
 205-14  under Subchapter J, Chapter 481, Government Code, and the programs
 205-15  to be transferred to the Texas Workforce Commission.  If the adult
 205-16  education program under Section 11.18, Education Code, is not
 205-17  transferred to the Texas Workforce Commission because of the
 205-18  passage of alternative requirements in Senate Bill 1, Acts of the
 205-19  74th Legislature, Regular Session, 1995, the comptroller shall
 205-20  include that program in the study.  Based on the study, the
 205-21  comptroller shall develop and make recommendations to the governor,
 205-22  lieutenant governor, and speaker of the house of representatives
 205-23  for the integrated structure of the Texas Workforce Commission.
 205-24        (b)  Each state agency affected by the transfer of program
 205-25  jurisdiction shall cooperate with the comptroller in formulating
 205-26  and implementing a transition plan, including the development of
 205-27  program transition plans and an interim operating budget and the
  206-1  temporary assignment of staff as necessary to ensure an orderly
  206-2  transition.
  206-3        (c)  The comptroller's report and recommendations for the
  206-4  structure of the commission and transition of the programs affected
  206-5  under this article shall be filed with the governor, lieutenant
  206-6  governor, and speaker of the house of representatives not later
  206-7  than December 1, 1995.
  206-8        (d)  After review by the governor, lieutenant governor, and
  206-9  speaker of the house of representatives of the comptroller's plan,
 206-10  the Texas Workforce Commission shall, to the extent practicable,
 206-11  implement the program transition in a manner consistent with the
 206-12  comptroller's plan.
 206-13        (e)  The transition oversight committee is created to assist
 206-14  the transition of programs to the jurisdiction of the Texas
 206-15  Workforce Commission and to assist that commission in
 206-16  implementation of the comptroller's recommendations.  The committee
 206-17  is composed of:
 206-18              (1)  the executive director of the Texas Workforce
 206-19  Commission;
 206-20              (2)  the agency administrator of the Texas Employment
 206-21  Commission;
 206-22              (3)  the executive director of the Council on Workforce
 206-23  and Economic Competitiveness;
 206-24              (4)  the commissioner of education;
 206-25              (5)  the commissioner of human services;
 206-26              (6)  the executive director of the Texas Department on
 206-27  Aging;
  207-1              (7)  the executive director of the Texas Department of
  207-2  Commerce;
  207-3              (8)  a representative of the governor;
  207-4              (9)  a representative of the lieutenant governor; and
  207-5              (10)  a representative of the speaker of the house of
  207-6  representatives.
  207-7        (f)  The representative of the governor shall serve as
  207-8  presiding officer of the committee.
  207-9        (g)  Each state agency affected by the transfer of program
 207-10  jurisdiction shall cooperate with the comptroller, the committee,
 207-11  and the Texas Workforce Commission in formulating and implementing
 207-12  a transition plan.
 207-13        (h)  The committee may:
 207-14              (1)  appoint a full-time staff person with clerical
 207-15  assistance as necessary to assist in implementing the duties of the
 207-16  committee;
 207-17              (2)  adopt interim rules and procedures as necessary to
 207-18  implement this section, consistent with this article and the laws
 207-19  of this state; and
 207-20              (3)  transfer staff from the affected state agencies to
 207-21  the committee to assist the committee in the implementation of its
 207-22  duties.
 207-23        (i)  The committee shall hold its initial meeting not later
 207-24  than the 30th day after the effective date of this article.
 207-25        (j)  This section expires and the committee is abolished
 207-26  September 1, 1997.
 207-27        SECTION 11.77.  The executive director of the Texas Workforce
  208-1  Commission shall report to the legislature and the governor not
  208-2  later than December 1, 1996, the results of an analysis conducted
  208-3  by that commission as to whether block grant funding under Section
  208-4  302.062, Labor Code, as added by this article, should be extended
  208-5  to the programs exempted from block grant funding under Subsection
  208-6  (g) of that section.
  208-7        SECTION 11.78.  (a)  The state auditor shall evaluate the
  208-8  management and fiscal control systems of the Texas Workforce
  208-9  Commission and make any recommendations for improvement to the
 208-10  governor, the legislature, and the commission.
 208-11        (b)  The state auditor shall report to the governor and the
 208-12  legislature not later than December 1, 1996, the results of the
 208-13  evaluation conducted under Subsection (a) of this section.
 208-14        SECTION 11.79.  (a)  In addition to the new changes in law
 208-15  made by this article relating to job training and school dropout
 208-16  prevention, this article conforms Sections 305.021(a) and (b),
 208-17  Labor Code, as added by this article, to changes made by Section 1,
 208-18  Chapter 183, Acts of the 73rd Legislature, Regular Session, 1993.
 208-19        (b)  Section 1, Chapter 183, Acts of the 73rd Legislature,
 208-20  Regular Session, 1993, is repealed.
 208-21        SECTION 11.80.  The lieutenant governor shall appoint the
 208-22  initial presiding officer to the oversight committee created under
 208-23  Subchapter G, Chapter 301, Labor Code, as added by this article.
 208-24        SECTION 11.81.  The changes in law made by this article are
 208-25  not intended to supersede the authority of the State Board of
 208-26  Education, the Central Education Agency, or local school boards
 208-27  over the curriculum of kindergarten through eighth grade.
  209-1       ARTICLE 12.  REPEALER; WAIVERS; EFFECTIVE DATE; EMERGENCY
  209-2        SECTION 12.01.  REPEALER.  Sections 31.011 and 31.013, Human
  209-3  Resources Code, are repealed.
  209-4        SECTION 12.02.  WAIVERS.  If before implementing any
  209-5  provision of this Act, the Texas Department of Human Services, the
  209-6  Title IV-D agency, or another agency determines that a waiver or
  209-7  authorization from a federal agency is necessary for implementation
  209-8  of that provision, the department or the agency affected by the
  209-9  provision shall request the waiver or authorization and may delay
 209-10  implementing that provision until the waiver or authorization is
 209-11  granted.  In order to implement Section 31.014, Human Resources
 209-12  Code, providing benefits to certain two-parent families, the
 209-13  department shall reapply for any needed waiver or authorization
 209-14  whether or not implementation of the program would be cost-neutral.
 209-15        SECTION 12.03.  EFFECTIVE DATE.  Except as otherwise provided
 209-16  by this Act, this Act takes effect September 1, 1995.
 209-17        SECTION 12.04.  Emergency.  The importance of this
 209-18  legislation and the crowded condition of the calendars in both
 209-19  houses create an emergency and an imperative public necessity that
 209-20  the constitutional rule requiring bills to be read on three several
 209-21  days in each house be suspended, and this rule is hereby suspended,
 209-22  and that this Act take effect and be in force according to its
 209-23  terms, and it is so enacted.