1-1 By: Raymond (Senate Sponsor - Montford) H.B. No. 2858
1-2 (In the Senate - Received from the House May 15, 1995;
1-3 May 18, 1995, read first time and referred to Committee on Economic
1-4 Development; May 26, 1995, reported favorably by the following
1-5 vote: Yeas 8, Nays 1; May 26, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the operation of the smart jobs fund and the employment
1-9 training program created under that fund.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. The heading to Subchapter J, Chapter 481,
1-12 Government Code, is amended to read as follows:
1-13 SUBCHAPTER J. SMART JOBS FUND <PROGRAM>
1-14 SECTION 2. Section 481.151, Government Code, is amended to
1-15 read as follows:
1-16 Sec. 481.151. DEFINITIONS. In this subchapter:
1-17 (1) "Business development" includes relocation,
1-18 expansion, turnover, diversification, or technological change.
1-19 (2) "Demand occupation" means an occupation in which,
1-20 as a result of business development, there are or will be positive
1-21 growth-to-replacement ratios within the next 12 to 24 months,
1-22 according to the best available sources of state and local labor
1-23 market information.
1-24 (3) "Emerging occupation" means an occupation that:
1-25 (A) arises through forces related to
1-26 technological changes in the workplace; and
1-27 (B) requires at least two months of customized
1-28 education or training before a person trained in another field can
1-29 be reasonably expected to perform the duties of the occupation.
1-30 (4) <(3)> "Employee" means an individual who performs
1-31 services for another under a contract of hire, whether express or
1-32 implied, or oral or written.
1-33 (5) <(4)> "Employer" means a person that employs one
1-34 or more employees.
1-35 (6) <(5)> "Executive director" means the executive
1-36 director of the department.
1-37 (7) <(6)> "Existing employer" means an employer that:
1-38 (A) has been liable to pay contributions under
1-39 Subtitle A, Title 4, Labor Code <the Texas Unemployment
1-40 Compensation Act (Article 5221b-1 et seq., Vernon's Texas Civil
1-41 Statutes)> for more than one year;
1-42 (B) has employees; and
1-43 (C) is in compliance with the reporting and
1-44 payment requirements of that subtitle <Act>, as determined by the
1-45 Texas Employment Commission.
1-46 (8) <(7)> "Family wage job" means a job that offers:
1-47 (A) wages that start at a level at least equal
1-48 to 75 percent of <or greater than> the state average weekly wage;
1-49 (B) benefits, such as vacation leave, sick
1-50 leave, and insurance coverage;
1-51 (C) reasonable opportunities for continued skill
1-52 development and career path advancement; and
1-53 (D) a substantial likelihood of long-term job
1-54 security.
1-55 (9) <(8)> "In-kind contribution" means a noncash
1-56 contribution of goods and services provided by an employer as all
1-57 or part of the employer's matching share of a grant or project.
1-58 (10) <(9)> "Job" means employment on a basis
1-59 customarily considered full-time for the applicable occupation and
1-60 industry.
1-61 (11) "Manufacturing occupation" means an occupation in
1-62 an industry that is involved in the manufacture of products using
1-63 mechanical power and machinery.
1-64 (12) <(10)> "Minority employer" means a business
1-65 entity at least 51 percent of which is owned by minority group
1-66 members or, in the case of a corporation, at least 51 percent of
1-67 the shares of which are owned by minority group members and that:
1-68 (A) is managed and, in daily operations, is
2-1 controlled by minority group members; and
2-2 (B) is a domestic business entity with a home or
2-3 branch office located in this state and is not a branch or
2-4 subsidiary of a foreign corporation or other foreign business
2-5 entity.
2-6 (13) <(11)> "Minority group members" include members
2-7 of groups eligible for designation as historically underutilized
2-8 businesses under Section 481.191 <:>
2-9 <(A) African-Americans;>
2-10 <(B) American Indians;>
2-11 <(C) Asian-Americans; and>
2-12 <(D) Mexican-Americans and other Americans of
2-13 Hispanic origin>.
2-14 (14) <(12)> "Program" means the smart jobs fund
2-15 <program> created under this subchapter.
2-16 (15) <(13)> "Project" means a specific employment
2-17 training project developed and implemented under this subchapter.
2-18 (16) <(14)> "Provider" means a person that provides
2-19 employment-related training. The term includes employers, employer
2-20 associations, labor organizations, community-based organizations,
2-21 training consultants, public and private schools, technical
2-22 institutes, junior or community colleges, senior colleges,
2-23 universities, other institutions of higher education as defined by
2-24 Section 61.003, Education Code, and proprietary schools, as defined
2-25 by Section 32.11, Education Code.
2-26 (17) "Smart job" means a job that:
2-27 (A) is a family wage job; and
2-28 (B) requires, as a condition of employment,
2-29 high-level thinking, reasoning, and technical skills.
2-30 (18) <(15)> "State average weekly wage" means the
2-31 annual average of the average weekly wage of manufacturing
2-32 production workers in this state as of September 1 of each year, as
2-33 determined by the Texas Employment Commission under Section
2-34 207.002, Labor Code <3(b), Texas Unemployment Compensation Act
2-35 (Article 5221b-1, Vernon's Texas Civil Statutes)>, adjusted for
2-36 regional variances.
2-37 <(16) "Targeted industry" means an industry that
2-38 promotes high-skill, high-wage jobs using Texas-available material
2-39 and human resources, as determined by the department.>
2-40 (19) <(17)> "Trainee" means a participant in a project
2-41 funded under this subchapter.
2-42 (20) <(18)> "Wages" means all forms of compensation or
2-43 remuneration, excluding benefits, payable for a specific period to
2-44 an employee for personal services rendered by that employee.
2-45 SECTION 3. Sections 481.152(a) and (b), Government Code, are
2-46 amended to read as follows:
2-47 (a) The smart jobs fund <program> is created in the
2-48 department as a business <work force development> incentive program
2-49 to enhance employment opportunities and to meet the needs of
2-50 existing and new industries in this state.
2-51 (b) The program shall give priority for funding to projects
2-52 that offer <the creation and retention of> family wage jobs <and
2-53 focus on employers in industries that promote high-skill, high-wage
2-54 jobs in high-technology areas and on demand occupations that
2-55 provide those jobs>. At least 60 percent of the money spent under
2-56 the program shall be used for projects that assist existing
2-57 employers.
2-58 SECTION 4. Section 481.155, Government Code, is amended to
2-59 read as follows:
2-60 Sec. 481.155. GRANTS. (a) The executive director may award
2-61 grants for projects that meet the requirements of this chapter.
2-62 The executive director shall attempt to ensure that at least 20
2-63 percent of the total dollar amount of grants awarded under the
2-64 program are awarded to minority employers.
2-65 (b) The program is job-driven. A grant may not be awarded
2-66 unless each employer participating in the project certifies that:
2-67 (1) a job or job opening exists or will exist at the
2-68 end of the project for which the grant is sought; and
2-69 (2) the job or job opening will be filled by a
2-70 participant in the project.
3-1 (c) A grant may not be awarded for a project under this
3-2 section unless each employer participating in the project certifies
3-3 that, by the end of <starting wage for a new job created through>
3-4 the project, wages will be greater than 75 <66 2/3> percent of the
3-5 state average weekly wage. For <and that the wage for> a job
3-6 existing on the date that the project is scheduled to begin that
3-7 already pays a wage at or greater than 75 percent of the state
3-8 average weekly wage, the employer must certify a five <will be
3-9 increased to the greater of:>
3-10 <(1) 10> percent increase in the amount of the wage
3-11 for <over the wage in effect on the day before> the date on which
3-12 the project ends <is scheduled to begin for that job; or>
3-13 <(2) 75 percent of the state average weekly wage>.
3-14 (d) An employer may apply for a grant under this chapter and
3-15 may request a modification of a requirement imposed under
3-16 Subsection (c) if:
3-17 (1) the employer is required to reduce or eliminate
3-18 the employer's work force because of reductions in overall
3-19 employment within an industry;
3-20 (2) there is <or> a substantial change in the skills
3-21 required to continue the employer's business because of
3-22 technological changes; or
3-23 (3) other factors occur that the executive director
3-24 determines reasonable to warrant a modification.
3-25 (e) In awarding a grant under Subsection (d) <this
3-26 subsection>, the executive director may modify the requirements of
3-27 Subsection (c). Grants awarded under this subsection for which the
3-28 executive director has modified the requirements of Subsection (c)
3-29 may not, in any fiscal year, exceed five <10> percent of the total
3-30 dollar amount of grants awarded under the program in that year.
3-31 (f) <(e)> Unless modified by the executive director under
3-32 rules adopted by the policy board, a grant may not be awarded for a
3-33 project unless each employer participating in the project certifies
3-34 that it will continue to spend on nonmanagerial training an amount
3-35 from private sources equal to the average amount spent by that
3-36 employer on such training for the most recent two-year period.
3-37 (g) <(f)> A grant may not be awarded for a project if the
3-38 project will impair existing contracts for services or collective
3-39 bargaining agreements to which the grant application is subject at
3-40 the time of the application, except that a project inconsistent
3-41 with the terms of a collective bargaining agreement may be
3-42 undertaken with the written concurrence of the collective
3-43 bargaining unit and the employer or employers who are parties to
3-44 the agreement.
3-45 (h) <(g)> During each state fiscal year the executive
3-46 director shall attempt to ensure that at least 50 percent of the
3-47 total dollar amount of grants awarded under this section is awarded
3-48 to small businesses, as defined by Section 481.101.
3-49 SECTION 5. Sections 481.156(a) and (e), Government Code, are
3-50 amended to read as follows:
3-51 (a) The following may apply for a grant under this
3-52 subchapter:
3-53 (1) one or more employers to secure training for
3-54 demand occupations, emerging occupations, or manufacturing
3-55 occupations in a particular industry;
3-56 (2) one or more employers acting in partnership with
3-57 an employer organization, labor organization, or community-based
3-58 organization to secure training for demand occupations, emerging
3-59 occupations, or manufacturing occupations in a particular industry;
3-60 or
3-61 (3) one or more employers acting in partnership with a
3-62 consortium composed of one or more providers to secure training for
3-63 demand occupations, emerging occupations, or manufacturing
3-64 occupations in a particular industry.
3-65 (e) The executive director shall act on a completed
3-66 application not later than the 30th business day after the date on
3-67 which the application is filed with the department.
3-68 SECTION 6. Section 481.157(b), Government Code, is amended
3-69 to read as follows:
3-70 (b) The policy board may adopt rules modifying the
4-1 requirements of Subsection (a) for employers with fewer than 100
4-2 <50> employees and may also adopt rules modifying the requirements
4-3 of Subsection (a) for projects that provide significant economic
4-4 benefits to an entire region of the state.
4-5 SECTION 7. Section 481.159(b), Government Code, is amended
4-6 to read as follows:
4-7 (b) Reimbursable costs in the contract may include only
4-8 those expenses related to direct training in job-related basic
4-9 skills, including literacy skills, job-related vocational skills,
4-10 and administrative costs. Total administrative costs <for any
4-11 particular project> may not exceed 10 percent of direct
4-12 training-related costs <the project's expenditures>.
4-13 SECTION 8. Section 481.160(b), Government Code, is amended
4-14 to read as follows:
4-15 (b) The annual report must include for that fiscal year:
4-16 (1) the number of employers receiving grants under the
4-17 program;
4-18 (2) the total amount of grants awarded;
4-19 (3) <the value, expressed in dollars and as a
4-20 percentage of total training expenditures, of matching
4-21 contributions made by employers;>
4-22 <(4)> the number of small businesses, as defined by
4-23 Section 481.101(3), that receive grants under the program and the
4-24 total amount of the grants awarded to those businesses;
4-25 (4) <(5)> the number of businesses located in
4-26 enterprise zones, as that term is defined by Chapter 2303 <the
4-27 Texas Enterprise Zone Act (Article 5190.7, Vernon's Texas Civil
4-28 Statutes)>, that receive grants under the program and the total
4-29 amount of the grants awarded to those businesses;
4-30 (5) <(6)> the geographical distribution of employers
4-31 receiving grants under the program;
4-32 (6) <(7)> the total number of jobs created, enhanced,
4-33 or retained under the program, reported by region of the state and
4-34 by industry <occupation>;
4-35 (7) <(8)> the wage levels of trainees entering or
4-36 returning to the work force, broken down by current employees
4-37 undergoing retraining and new hires, at three months and <,> one
4-38 year<, and three years> after the conclusion of their training;
4-39 (8) <(9)> the number and percentage of participating
4-40 employers that provide workers' compensation insurance coverage and
4-41 the number and percentage of employees covered;
4-42 (9) <(10)> the number and percentage of participating
4-43 employers that offer health care insurance coverage and the number
4-44 and percentage of employees covered;
4-45 (10) <(11)> the number and percentage of women
4-46 employers and minority employers receiving grants under the program
4-47 and the total amount of the grants awarded, broken out by group;
4-48 and
4-49 (11) <(12)> the number and percentage of women,
4-50 minority group members, and disabled individuals participating as
4-51 trainees in training projects, broken out by group<; and>
4-52 <(13) the number and percentage of women private
4-53 providers and private providers who are minority group members
4-54 utilized by employers in training projects, broken out by group>.
4-55 SECTION 9. This Act takes effect September 1, 1995, and
4-56 applies only to a grant awarded under the smart jobs fund on or
4-57 after that date. A grant awarded before that date is governed by
4-58 the law in effect on the date that the grant was awarded, and the
4-59 former law is continued in effect for that purpose.
4-60 SECTION 10. The importance of this legislation and the
4-61 crowded condition of the calendars in both houses create an
4-62 emergency and an imperative public necessity that the
4-63 constitutional rule requiring bills to be read on three several
4-64 days in each house be suspended, and this rule is hereby suspended.
4-65 * * * * *