74R10666 E
By Raymond H.B. No. 2858
Substitute the following for H.B. No. 2858:
By Yarbrough C.S.H.B. No. 2858
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of the smart jobs fund and the employment
1-3 training program created under that fund.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading to Subchapter J, Chapter 481,
1-6 Government Code, is amended to read as follows:
1-7 SUBCHAPTER J. SMART JOBS FUND <PROGRAM>
1-8 SECTION 2. Section 481.151, Government Code, is amended to
1-9 read as follows:
1-10 Sec. 481.151. DEFINITIONS. In this subchapter:
1-11 (1) "Business development" includes relocation,
1-12 expansion, turnover, diversification, or technological change.
1-13 (2) "Demand occupation" means an occupation in which,
1-14 as a result of business development, there are or will be positive
1-15 growth-to-replacement ratios within the next 12 to 24 months,
1-16 according to the best available sources of state and local labor
1-17 market information.
1-18 (3) "Emerging occupation" means an occupation that:
1-19 (A) arises through forces related to
1-20 technological changes in the workplace; and
1-21 (B) requires at least two months of customized
1-22 education or training before a person trained in another field can
1-23 be reasonably expected to perform the duties of the occupation.
1-24 (4) <(3)> "Employee" means an individual who performs
2-1 services for another under a contract of hire, whether express or
2-2 implied, or oral or written.
2-3 (5) <(4)> "Employer" means a person that employs one
2-4 or more employees.
2-5 (6) <(5)> "Executive director" means the executive
2-6 director of the department.
2-7 (7) <(6)> "Existing employer" means an employer that:
2-8 (A) has been liable to pay contributions under
2-9 Subtitle A, Title 4, Labor Code <the Texas Unemployment
2-10 Compensation Act (Article 5221b-1 et seq., Vernon's Texas Civil
2-11 Statutes)> for more than one year;
2-12 (B) has employees; and
2-13 (C) is in compliance with the reporting and
2-14 payment requirements of that subtitle <Act>, as determined by the
2-15 Texas Employment Commission.
2-16 (8) <(7)> "Family wage job" means a job that offers:
2-17 (A) wages that start at a level at least equal
2-18 to 75 percent of <or greater than> the state average weekly wage;
2-19 (B) benefits, such as vacation leave, sick
2-20 leave, and insurance coverage;
2-21 (C) reasonable opportunities for continued skill
2-22 development and career path advancement; and
2-23 (D) a substantial likelihood of long-term job
2-24 security.
2-25 (9) <(8)> "In-kind contribution" means a noncash
2-26 contribution of goods and services provided by an employer as all
2-27 or part of the employer's matching share of a grant or project.
3-1 (10) <(9)> "Job" means employment on a basis
3-2 customarily considered full-time for the applicable occupation and
3-3 industry.
3-4 (11) "Manufacturing occupation" means an occupation in
3-5 an industry that is involved in the manufacture of products using
3-6 mechanical power and machinery.
3-7 (12) <(10)> "Minority employer" means a business
3-8 entity at least 51 percent of which is owned by minority group
3-9 members or, in the case of a corporation, at least 51 percent of
3-10 the shares of which are owned by minority group members and that:
3-11 (A) is managed and, in daily operations, is
3-12 controlled by minority group members; and
3-13 (B) is a domestic business entity with a home or
3-14 branch office located in this state and is not a branch or
3-15 subsidiary of a foreign corporation or other foreign business
3-16 entity.
3-17 (13) <(11)> "Minority group members" include members
3-18 of groups eligible for designation as historically underutilized
3-19 businesses under Section 481.191 <:>
3-20 <(A) African-Americans;>
3-21 <(B) American Indians;>
3-22 <(C) Asian-Americans; and>
3-23 <(D) Mexican-Americans and other Americans of
3-24 Hispanic origin>.
3-25 (14) <(12)> "Program" means the smart jobs fund
3-26 <program> created under this subchapter.
3-27 (15) <(13)> "Project" means a specific employment
4-1 training project developed and implemented under this subchapter.
4-2 (16) <(14)> "Provider" means a person that provides
4-3 employment-related training. The term includes employers, employer
4-4 associations, labor organizations, community-based organizations,
4-5 training consultants, public and private schools, technical
4-6 institutes, junior or community colleges, senior colleges,
4-7 universities, and proprietary schools, as defined by Section 32.11,
4-8 Education Code.
4-9 (17) "Smart job" means a job that:
4-10 (A) is a family wage job; and
4-11 (B) requires, as a condition of employment,
4-12 high-level thinking, reasoning, and technical skills.
4-13 (18) <(15)> "State average weekly wage" means the
4-14 annual average of the average weekly wage of manufacturing
4-15 production workers in this state as of September 1 of each year, as
4-16 determined by the Texas Employment Commission under Section
4-17 207.002, Labor Code <3(b), Texas Unemployment Compensation Act
4-18 (Article 5221b-1, Vernon's Texas Civil Statutes)>, adjusted for
4-19 regional variances.
4-20 <(16) "Targeted industry" means an industry that
4-21 promotes high-skill, high-wage jobs using Texas-available material
4-22 and human resources, as determined by the department.>
4-23 (19) <(17)> "Trainee" means a participant in a project
4-24 funded under this subchapter.
4-25 (20) <(18)> "Wages" means all forms of compensation or
4-26 remuneration, excluding benefits, payable for a specific period to
4-27 an employee for personal services rendered by that employee.
5-1 SECTION 3. Sections 481.152(a) and (b), Government Code, are
5-2 amended to read as follows:
5-3 (a) The smart jobs fund <program> is created in the
5-4 department as a business <work force development> incentive program
5-5 to enhance employment opportunities and to meet the needs of
5-6 existing and new industries in this state.
5-7 (b) The program shall give priority for funding to projects
5-8 that offer <the creation and retention of> family wage jobs <and
5-9 focus on employers in industries that promote high-skill, high-wage
5-10 jobs in high-technology areas and on demand occupations that
5-11 provide those jobs>. At least 60 percent of the money spent under
5-12 the program shall be used for projects that assist existing
5-13 employers.
5-14 SECTION 4. Section 481.155, Government Code, is amended to
5-15 read as follows:
5-16 Sec. 481.155. GRANTS. (a) The executive director may award
5-17 grants for projects that meet the requirements of this chapter.
5-18 The executive director shall attempt to ensure that at least 20
5-19 percent of the total dollar amount of grants awarded under the
5-20 program are awarded to minority employers.
5-21 (b) The program is job-driven. A grant may not be awarded
5-22 unless each employer participating in the project certifies that:
5-23 (1) a job or job opening exists or will exist at the
5-24 end of the project for which the grant is sought; and
5-25 (2) the job or job opening will be filled by a
5-26 participant in the project.
5-27 (c) A grant may not be awarded for a project under this
6-1 section unless each employer participating in the project certifies
6-2 that, by the end of <starting wage for a new job created through>
6-3 the project, wages will be greater than 75 <66 2/3> percent of the
6-4 state average weekly wage. For <and that the wage for> a job
6-5 existing on the date that the project is scheduled to begin that
6-6 already pays a wage at or greater than 75 percent of the state
6-7 average weekly wage, the employer must certify a five <will be
6-8 increased to the greater of:>
6-9 <(1) 10> percent increase in the amount of the wage
6-10 for <over the wage in effect on the day before> the date on which
6-11 the project ends <is scheduled to begin for that job; or>
6-12 <(2) 75 percent of the state average weekly wage>.
6-13 (d) An employer may apply for a grant under this chapter and
6-14 may request a modification of a requirement imposed under
6-15 Subsection (c) if:
6-16 (1) the employer is required to reduce or eliminate
6-17 the employer's work force because of reductions in overall
6-18 employment within an industry;
6-19 (2) there is <or> a substantial change in the skills
6-20 required to continue the employer's business because of
6-21 technological changes; or
6-22 (3) other factors occur that the executive director
6-23 determines reasonable to warrant a modification.
6-24 (e) In awarding a grant under Subsection (d) <this
6-25 subsection>, the executive director may modify the requirements of
6-26 Subsection (c). Grants awarded under this subsection for which the
6-27 executive director has modified the requirements of Subsection (c)
7-1 may not, in any fiscal year, exceed five <10> percent of the total
7-2 dollar amount of grants awarded under the program in that year.
7-3 (f) <(e)> Unless modified by the executive director under
7-4 rules adopted by the policy board, a grant may not be awarded for a
7-5 project unless each employer participating in the project certifies
7-6 that it will continue to spend on nonmanagerial training an amount
7-7 from private sources equal to the average amount spent by that
7-8 employer on such training for the most recent two-year period.
7-9 (g) <(f)> A grant may not be awarded for a project if the
7-10 project will impair existing contracts for services or collective
7-11 bargaining agreements, except that a project inconsistent with the
7-12 terms of a collective bargaining agreement may be undertaken with
7-13 the written concurrence of the collective bargaining unit and the
7-14 employer or employers who are parties to the agreement.
7-15 (h) <(g)> During each state fiscal year the executive
7-16 director shall attempt to ensure that at least 50 percent of the
7-17 total dollar amount of grants awarded under this section is awarded
7-18 to small businesses, as defined by Section 481.101.
7-19 SECTION 5. Sections 481.156(a) and (e), Government Code, are
7-20 amended to read as follows:
7-21 (a) The following may apply for a grant under this
7-22 subchapter:
7-23 (1) one or more employers to secure training for
7-24 demand occupations, emerging occupations, or manufacturing
7-25 occupations in a particular industry;
7-26 (2) one or more employers acting in partnership with
7-27 an employer organization, labor organization, or community-based
8-1 organization to secure training for demand occupations, emerging
8-2 occupations, or manufacturing occupations in a particular industry;
8-3 or
8-4 (3) one or more employers acting in partnership with a
8-5 consortium composed of one or more providers to secure training for
8-6 demand occupations, emerging occupations, or manufacturing
8-7 occupations in a particular industry.
8-8 (e) The executive director shall act on a completed
8-9 application not later than the 30th business day after the date on
8-10 which the application is filed with the department.
8-11 SECTION 6. Section 481.157(b), Government Code, is amended
8-12 to read as follows:
8-13 (b) The policy board may adopt rules modifying the
8-14 requirements of Subsection (a) for employers with fewer than 100
8-15 <50> employees and may also adopt rules modifying the requirements
8-16 of Subsection (a) for projects that provide significant economic
8-17 benefits to an entire region of the state.
8-18 SECTION 7. Section 481.159(b), Government Code, is amended
8-19 to read as follows:
8-20 (b) Reimbursable costs in the contract may include only
8-21 those expenses related to direct training in job-related basic
8-22 skills, including literacy skills, job-related vocational skills,
8-23 and administrative costs. Total administrative costs <for any
8-24 particular project> may not exceed 10 percent of direct
8-25 training-related costs <the project's expenditures>.
8-26 SECTION 8. Section 481.160(b), Government Code, is amended
8-27 to read as follows:
9-1 (b) The annual report must include for that fiscal year:
9-2 (1) the number of employers receiving grants under the
9-3 program;
9-4 (2) the total amount of grants awarded;
9-5 (3) <the value, expressed in dollars and as a
9-6 percentage of total training expenditures, of matching
9-7 contributions made by employers;>
9-8 <(4)> the number of small businesses, as defined by
9-9 Section 481.101(3), that receive grants under the program and the
9-10 total amount of the grants awarded to those businesses;
9-11 (4) <(5)> the number of businesses located in
9-12 enterprise zones, as that term is defined by Chapter 2303 <the
9-13 Texas Enterprise Zone Act (Article 5190.7, Vernon's Texas Civil
9-14 Statutes)>, that receive grants under the program and the total
9-15 amount of the grants awarded to those businesses;
9-16 (5) <(6)> the geographical distribution of employers
9-17 receiving grants under the program;
9-18 (6) <(7)> the total number of jobs created, enhanced,
9-19 or retained under the program, reported by region of the state and
9-20 by industry <occupation>;
9-21 (7) <(8)> the wage levels of trainees entering or
9-22 returning to the work force, broken down by current employees
9-23 undergoing retraining and new hires, at three months and <,> one
9-24 year<, and three years> after the conclusion of their training;
9-25 (8) <(9)> the number and percentage of participating
9-26 employers that provide workers' compensation insurance coverage and
9-27 the number and percentage of employees covered;
10-1 (9) <(10)> the number and percentage of participating
10-2 employers that offer health care insurance coverage and the number
10-3 and percentage of employees covered;
10-4 (10) <(11)> the number and percentage of women
10-5 employers and minority employers receiving grants under the program
10-6 and the total amount of the grants awarded, broken out by group;
10-7 and
10-8 (11) <(12)> the number and percentage of women,
10-9 minority group members, and disabled individuals participating as
10-10 trainees in training projects, broken out by group<; and>
10-11 <(13) the number and percentage of women private
10-12 providers and private providers who are minority group members
10-13 utilized by employers in training projects, broken out by group>.
10-14 SECTION 9. This Act takes effect September 1, 1995, and
10-15 applies only to a grant awarded under the smart jobs fund on or
10-16 after that date. A grant awarded before that date is governed by
10-17 the law in effect on the date that the grant was awarded, and the
10-18 former law is continued in effect for that purpose.
10-19 SECTION 10. The importance of this legislation and the
10-20 crowded condition of the calendars in both houses create an
10-21 emergency and an imperative public necessity that the
10-22 constitutional rule requiring bills to be read on three several
10-23 days in each house be suspended, and this rule is hereby suspended.