By Ellis                                               S.B. No. 596
       74R5714 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the consolidation of certain programs regarding job
    1-3  training, labor, and employment, the creation of a statewide
    1-4  workforce development system, and the creation and operation of the
    1-5  Texas Workforce Development Department.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7                   ARTICLE 1.  WORKFORCE DEVELOPMENT
    1-8        SECTION 1.01.  The heading of Subtitle B, Title 4, Labor
    1-9  Code, is amended to read as follows:
   1-10           SUBTITLE B.  WORKFORCE DEVELOPMENT; <ADDITIONAL>
   1-11                          EMPLOYMENT SERVICES
   1-12        SECTION 1.02.  Subtitle B, Title 4, Labor Code, is amended by
   1-13  adding new Chapters 301 and 302 to read as follows:
   1-14                   CHAPTER 301.  GENERAL PROVISIONS
   1-15        Sec. 301.001.  APPLICATION OF SUNSET ACT.  The Texas
   1-16  Workforce Development Department is subject to Chapter 325,
   1-17  Government Code (Texas Sunset Act).  Unless continued in existence
   1-18  as provided by that chapter, the department is abolished September
   1-19  1, 2007.
   1-20        Sec. 301.002.  DEFINITIONS.  Except as otherwise provided, in
   1-21  this subtitle:
   1-22              (1)  "Commission" means the Texas Employment
   1-23  Commission.
   1-24              (2)  "Commissioner" means the commissioner of workforce
    2-1  development.
    2-2              (3)  "Council" means the Council on Workforce and
    2-3  Economic Competitiveness.
    2-4              (4)  "Department" means the Texas Workforce Development
    2-5  Department.
    2-6         CHAPTER 302.  TEXAS WORKFORCE DEVELOPMENT DEPARTMENT
    2-7                      SUBCHAPTER A.  ORGANIZATION
    2-8        Sec. 302.001.  PURPOSE.  The Texas Workforce Development
    2-9  Department is a state agency created to administer workforce
   2-10  training and service in this state, in particular through the
   2-11  consolidation of job training, employment, and employment-related
   2-12  educational programs conducted by this state.
   2-13        Sec. 302.002.  AGENCY STRUCTURE.  The department is composed
   2-14  of the commissioner of workforce development and the staff of the
   2-15  department.
   2-16           (Sections 302.003-302.020 reserved for expansion
   2-17          SUBCHAPTER B.  COMMISSIONER; AGENCY ADMINISTRATION
   2-18        Sec. 302.021.  COMMISSIONER; GENERAL POWERS AND DUTIES.  (a)
   2-19  The commission shall recommend to the governor an individual to be
   2-20  named as commissioner of workforce development.  The governor may
   2-21  either appoint the individual or reject the nomination.  If the
   2-22  governor rejects the nomination, the commission shall recommend
   2-23  additional appointees until the governor makes the appointment.
   2-24  Appointment of the commissioner is subject to confirmation by the
   2-25  senate.
   2-26        (b)  The commissioner shall serve a two-year term that
   2-27  expires on February 1 of each odd-numbered year. The commissioner
    3-1  may serve consecutive terms.
    3-2        (c)  To be appointed commissioner, a person must have broad
    3-3  experience, with recognized abilities of the highest order in
    3-4  organization, direction, and coordination of workforce development
    3-5  programs and in the administration and management of employment
    3-6  programs generally.  The commissioner must be a citizen of the
    3-7  United States.
    3-8        (d)  The commissioner shall execute an official bond in an
    3-9  amount not to exceed $50,000, conditioned on the faithful
   3-10  performance of the duties of the office as prescribed by the laws
   3-11  of this state and by Chapter 653, Government Code.
   3-12        (e)  The commissioner shall:
   3-13              (1)  appoint and prescribe the duties of all officers,
   3-14  administrators, accountants, attorneys, experts, and other
   3-15  employees as necessary in the performance of the department's
   3-16  duties;
   3-17              (2)  delegate authority to persons appointed under this
   3-18  section as the commissioner considers reasonable and proper for the
   3-19  effective administration of the department;
   3-20              (3)  adopt rules in accordance with Chapter 2001,
   3-21  Government Code, as necessary for the proper administration of the
   3-22  department;
   3-23              (4)  prepare and submit an annual agency performance
   3-24  report to the commission;
   3-25              (5)  respond promptly in writing to any reasonable
   3-26  request for information made by a member of the commission; and
   3-27              (6)  bond any person who handles money or signs checks
    4-1  for the department.
    4-2        (f)  The commissioner may obligate funds from the smart jobs
    4-3  fund and the skills development fund in a manner consistent with
    4-4  the rules adopted for those programs.  The commissioner is not
    4-5  required to receive commission approval for decisions made under
    4-6  this subsection, but shall report to the commission on a quarterly
    4-7  basis  regarding actions taken under this subsection.  Submission
    4-8  by the commissioner of a quarterly report under this subsection
    4-9  does not supersede the requirement to provide information under
   4-10  Subsection (e)(5).
   4-11        Sec. 302.022.  PERSONNEL POLICIES.  (a)  The commissioner
   4-12  shall develop an intra-agency career ladder program for employees
   4-13  of the department.  The program shall require the intra-agency
   4-14  posting of all non-entry-level positions concurrently with any
   4-15  public posting.
   4-16        (b)  The commissioner shall develop a system of annual
   4-17  performance evaluations based on measurable job tasks.  All merit
   4-18  pay for department employees must be based on the system
   4-19  established under this subsection.
   4-20        Sec. 302.023.  STANDARDS OF CONDUCT INFORMATION.  The
   4-21  commissioner shall provide to the department's employees as often
   4-22  as necessary information regarding their qualifications under this
   4-23  chapter and their responsibilities under applicable laws relating
   4-24  to standards of conduct for state officers and employees.
   4-25        Sec. 302.024.  EQUAL EMPLOYMENT OPPORTUNITY POLICIES.  (a)
   4-26  The commissioner shall prepare and maintain a written policy
   4-27  statement to ensure implementation of a program of equal employment
    5-1  opportunity under which all personnel transactions are made without
    5-2  regard to race, color, disability, sex, religion, age, or national
    5-3  origin.  The policy statement must include:
    5-4              (1)  personnel policies, including policies relating to
    5-5  recruitment, evaluation, selection, appointment, training, and
    5-6  promotion of personnel that are in compliance with Chapter 21;
    5-7              (2)  a comprehensive analysis of the department's
    5-8  workforce that meets federal and state guidelines;
    5-9              (3)  procedures by which a determination can be made of
   5-10  significant underuse in the department's workforce of all persons
   5-11  for whom federal or state guidelines encourage a more equitable
   5-12  balance; and
   5-13              (4)  reasonable methods to appropriately address those
   5-14  areas of underuse.
   5-15        (b)  A policy statement under Subsection (a) must cover an
   5-16  annual period, be updated annually, be reviewed by the Commission
   5-17  on Human Rights for compliance with Subsection (a), and be filed
   5-18  with the governor's office.
   5-19        (c)  The governor's office shall deliver a biennial report to
   5-20  the legislature based on the information received under Subsection
   5-21  (b).  The report may be made separately or as part of other
   5-22  biennial reports to the legislature.
   5-23           (Sections 302.025-302.040 reserved for expansion
   5-24    SUBCHAPTER C.  JURISDICTION OF WORKFORCE DEVELOPMENT DEPARTMENT
   5-25        Sec. 302.041.  CONSOLIDATION OF WORKFORCE DEVELOPMENT
   5-26  PROGRAMS.  (a)  In cooperation with the local workforce development
   5-27  boards created under Article 4, Workforce and Economic
    6-1  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
    6-2  Statutes), the commissioner shall administer:
    6-3              (1)  adult education programs under Section 11.18,
    6-4  Education Code;
    6-5              (2)  proprietary schools programs under Chapter 32,
    6-6  Education Code;
    6-7              (3)  apprenticeship programs under Chapter 33,
    6-8  Education Code;
    6-9              (4)  the employment incentive programs under Chapter
   6-10  31, Human Resources Code;
   6-11              (5)  the employment program under Chapter 101, Human
   6-12  Resources Code;
   6-13              (6)  the employer new hire reporting program under
   6-14  Chapter 76, Human Resources Code;
   6-15              (7)  the work and family policies program under Chapter
   6-16  81;
   6-17              (8)  job training programs under Chapter 303 (Texas Job
   6-18  Training Partnership Act);
   6-19              (9)  the job counseling program for displaced
   6-20  homemakers under Chapter 304;
   6-21              (10)  the Communities in Schools program under Chapter
   6-22  305;
   6-23              (11)  the reintegration of offenders program under
   6-24  Chapter 306;
   6-25              (12)  the Texas State Employment Service under Chapter
   6-26  307;
   6-27              (13)  the smart jobs fund program created under
    7-1  Subchapter J, Chapter 481, Government Code;
    7-2              (14)  the workforce development programs under Section
    7-3  4.01, Workforce and Economic Competitiveness Act (Article 5190.7a,
    7-4  Vernon's Texas Civil Statutes);
    7-5              (15)  the inmate employment counseling program under
    7-6  Section 499.051(f), Government Code;
    7-7              (16)  the continuity of care program under Section
    7-8  501.095, Government Code;
    7-9              (17)  a literacy program from funds available to the
   7-10  state under  Section 481.026, Government Code;
   7-11              (18)  the community service program under the National
   7-12  and Community Service Act of 1990 (42 U.S.C. Section 12501 et
   7-13  seq.); and
   7-14              (19)  the trade adjustment allowance program under Part
   7-15  2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
   7-16  seq.).
   7-17        (b)  To the extent authorized under federal law, the
   7-18  commissioner shall administer in this state:
   7-19              (1)  the Job Opportunities and Basic Skills program
   7-20  under Part F, Subchapter IV, Social Security Act (42 U.S.C. Section
   7-21  682); and
   7-22              (2)  the food stamp employment and training program
   7-23  authorized under 7 U.S.C. Section 2015(d).
   7-24        Sec. 302.042.  GENERAL POWERS AND DUTIES.  (a)  The
   7-25  department shall meet the needs of:
   7-26              (1)  the businesses of this state for a highly skilled
   7-27  and productive workforce;
    8-1              (2)  the workers of this state for education, skills
    8-2  training, and labor market information to enhance their ability to
    8-3  be employed and to attain a decent standard of living; and
    8-4              (3)  the taxpayers of this state to ensure that tax
    8-5  revenues for workforce development are spent effectively and
    8-6  efficiently.
    8-7        (b)  The commissioner shall:
    8-8              (1)  administer all programs and corresponding federal
    8-9  and state legislation consolidated under the department's authority
   8-10  by this chapter;
   8-11              (2)  determine the organization and methods of
   8-12  procedure of the department in accordance with all applicable state
   8-13  and federal legislation;
   8-14              (3)  promote the adoption of high skill, high
   8-15  performance work organizations in this state;
   8-16              (4)  implement workforce training and services policies
   8-17  and programs, consistent with recommendations from the council and
   8-18  as approved by the governor;
   8-19              (5)  support research and demonstration projects
   8-20  designed to develop new programs and approaches to service
   8-21  delivery;
   8-22              (6)  serve as an advocate at the state and federal
   8-23  levels for the local workforce development boards;
   8-24              (7)  contract with local workforce development boards
   8-25  for program planning and service delivery;
   8-26              (8)  provide training and professional development
   8-27  services for department staff and local workforce development
    9-1  boards and their staff;
    9-2              (9)  provide technical assistance and support to local
    9-3  workforce development boards; and
    9-4              (10)  perform other functions and duties as may be
    9-5  required by law or assigned by the governor.
    9-6        (c)  The commissioner may adopt rules, make expenditures,
    9-7  enter into contracts with public, private, and nonprofit
    9-8  organizations, require reports, conduct investigations, and take
    9-9  other action the commissioner considers necessary or suitable to
   9-10  fulfill the department's administrative duties.
   9-11        Sec. 302.043.  STATE-LOCAL PLANNING.  The commissioner shall
   9-12  design and implement a state-local planning process for workforce
   9-13  training and services provided through the programs under the
   9-14  jurisdiction of the commissioner.
   9-15        Sec. 302.044.  REVIEW OF LOCAL PLANS; RECOMMENDATIONS.  The
   9-16  commissioner shall review the local workforce training and services
   9-17  plans developed under Section 4.05, Workforce and Economic
   9-18  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
   9-19  Statutes), and shall make recommendations to the council regarding
   9-20  the implementation of those plans.
   9-21        Sec. 302.045.  WAIVERS.  The commissioner shall develop
   9-22  objective criteria for the granting of waivers allowed under this
   9-23  chapter.
   9-24        Sec. 302.046.  CLIENT ACCESSIBILITY.  The commissioner shall
   9-25  develop a plan to ensure client accessibility to workforce
   9-26  programs.  The plan must include a uniform statewide client
   9-27  application system to determine an applicant's eligibility for a
   10-1  workforce program for which state or federal financial assistance
   10-2  is available.
   10-3        Sec. 302.047.  INTEGRATION OF PROGRAM ADMINISTRATION.  (a)
   10-4  The commissioner shall develop a plan for the integration of the
   10-5  administrative functions of the various education, job training,
   10-6  and employment programs under the jurisdiction and authority of the
   10-7  commissioner.
   10-8        (b)  The plan under Subsection (a) shall specify dates by
   10-9  which integration of the various functions must be completed.  To
  10-10  the extent possible, the plan shall rely on existing state and
  10-11  available federal funds to ensure minimum disruption of services.
  10-12        (c)  The plan under Subsection (a) shall be developed and
  10-13  submitted to the governor, the legislature, and the council not
  10-14  later than December 1, 1996.
  10-15        (d)  This section expires January 1, 1997.
  10-16           (Sections 302.048-302.060 reserved for expansion
  10-17           SUBCHAPTER D.  LOCAL WORKFORCE DEVELOPMENT BOARDS
  10-18        Sec. 302.061.  TRAINING FOR LOCAL WORKFORCE DEVELOPMENT BOARD
  10-19  MEMBERS.  (a)  The department shall provide management and board
  10-20  development training for all members of local workforce development
  10-21  boards that includes information regarding the importance of high
  10-22  quality workforces to the economic prosperity of their communities
  10-23  and encourages board members to be advocates in their communities
  10-24  for effective and efficient workforce development programs.  If a
  10-25  member of a workforce development board does not receive training
  10-26  under this section before the 91st day after the date on which the
  10-27  member begins service on the board, the person is ineligible to
   11-1  continue serving on the board.
   11-2        (b)  Training may be provided directly by the department or
   11-3  by a third party that has demonstrated experience in providing
   11-4  training to local workforce development or similar boards.  The
   11-5  council periodically shall review and appraise the quality of
   11-6  training.
   11-7        (c)  A local workforce development board shall provide at
   11-8  least 25 percent of the costs for the management and board
   11-9  development training of its members.
  11-10        SECTION 1.03.  Chapter 301, Labor Code, is redesignated as
  11-11  Chapter 303, Labor Code, and amended to read as follows:
  11-12           CHAPTER 303 <301>.  JOB TRAINING PARTNERSHIP ACT
  11-13                   SUBCHAPTER A.  GENERAL PROVISIONS
  11-14        Sec. 303.001 <301.001>.  Short Title.  This chapter may be
  11-15  cited as the Texas Job Training Partnership Act.
  11-16        Sec. 303.002 <301.002>.  Purpose.  The purpose of this
  11-17  chapter is to facilitate the development and implementation of
  11-18  effective state and local systems for managing job training,
  11-19  employment, and related programs in this state, as authorized by
  11-20  the federal act.
  11-21        Sec. 303.003 <301.003>.  State Policy.  It is the policy of
  11-22  this state that:
  11-23              (1)  all available resources from federal, state, and
  11-24  local governments, business, labor, and community-based
  11-25  organizations are coordinated to develop and promote a balanced,
  11-26  equitable, and cost-beneficial employment and training system;
  11-27              (2)  the governor and the legislature consult in
   12-1  implementing the federal act and this chapter; and
   12-2              (3)  to reduce dependency on public assistance, the
   12-3  programs created under this chapter emphasize service to AFDC
   12-4  recipients.
   12-5        Sec. 303.004 <301.004>.  State Goals.  (a)  It is a goal of
   12-6  this state to assist its citizens to obtain gainful employment and
   12-7  to reduce dependency on public assistance and unemployment
   12-8  compensation by:
   12-9              (1)  preparing young people and unskilled adults who
  12-10  are economically disadvantaged for entry into the work force;
  12-11              (2)  assisting citizens faced with serious barriers to
  12-12  employment, including age, disability, lack of education, and
  12-13  locality, to overcome those barriers;
  12-14              (3)  taking an affirmative role in ensuring the maximum
  12-15  use of available resources in planning, implementing, and
  12-16  facilitating this chapter through a partnership of individuals from
  12-17  the various diverse communities of the state, including
  12-18  representatives of business communities, local and state
  12-19  government, ethnic communities, education communities, and the
  12-20  various cultural and socioeconomic communities, in participation in
  12-21  decision-making and policy-making activities associated with
  12-22  programs created under this chapter; and
  12-23              (4)  retraining individuals whose current skills are no
  12-24  longer in demand in the labor market or who have been laid off from
  12-25  full-time employment, and who must upgrade their work skills to
  12-26  return to the work force.
  12-27        (b)  It is a goal of this state to develop a well-trained,
   13-1  productive work force to meet the needs of a changing economy by:
   13-2              (1)  coordinating existing labor market information to
   13-3  maximize its utility for planning and operating programs;
   13-4              (2)  providing enhanced employment and training
   13-5  capabilities that are specially designed to meet the needs of
   13-6  business and industry, including industries that use advanced
   13-7  technology;
   13-8              (3)  linking employment and training services with
   13-9  economic development efforts; and
  13-10              (4)  coordinating planning and delivery of job
  13-11  training, employment, and related programs provided by separate
  13-12  state agencies to improve the efficiency and effectiveness of those
  13-13  programs.
  13-14        Sec. 303.005 <301.005>.  Definitions.  (a)  In this chapter:
  13-15              (1)  "Committee" means the monitoring committee
  13-16  established under Section 303.026 <301.026>.
  13-17              (2)  <"Department" means the Texas Department of
  13-18  Commerce.>
  13-19              <(3)>  "Federal act" means the federal Job Training
  13-20  Partnership Act (29 U.S.C. Section 1501 et seq.).
  13-21              (3) <(4)>  "Grant recipient" means an entity that
  13-22  contracts for and receives funds from the governor.
  13-23              (4) <(5)>  "Labor market area" means an economically
  13-24  integrated geographical area within which individuals may reside
  13-25  and find employment within a reasonable distance.
  13-26              (5) <(6)>  "Service delivery area" means a geographic
  13-27  area designated as a service delivery area under Section 303.041
   14-1  <301.041>.
   14-2              (6) <(7)>  "State council" means the State Job Training
   14-3  Coordinating Council.
   14-4        (b)  The definitions provided by Section 4 of the federal act
   14-5  apply to this chapter, except that "governor" means the governor of
   14-6  this state.
   14-7        Sec. 303.006.  PRIVATE INDUSTRY COUNCIL; LOCAL WORKFORCE
   14-8  DEVELOPMENT BOARD.  For the purposes of this chapter, "private
   14-9  industry council" refers to both:
  14-10              (1)  the entity described as a private industry council
  14-11  by the federal act; and
  14-12              (2)  a local workforce development board in a local
  14-13  market area in which a local workforce development board created
  14-14  under Article 4, Workforce and Economic Competitiveness Act
  14-15  (Article 5190.7a, Vernon's Texas Civil Statutes), has been
  14-16  established.
  14-17              (Sections 303.007-303.020 <301.006-301.020>
  14-18                        reserved for expansion)
  14-19                  SUBCHAPTER B.  STATE ADMINISTRATION
  14-20        Sec. 303.021 <301.021>.  General Duties of Governor's Office
  14-21  and Staff.  (a)  The governor or the governor's delegated agency is
  14-22  responsible for the planning, monitoring, implementing, and
  14-23  evaluating of job training, employment, and related programs as
  14-24  provided for by the federal act.
  14-25        (b)  A job training and employment staff is in the governor's
  14-26  office.  The staff has responsibility for policy development,
  14-27  program planning, monitoring, and evaluation of the programs under
   15-1  this chapter in coordination with existing state agencies as
   15-2  provided under the federal act.  The staff shall:
   15-3              (1)  assist the state council as directed by the
   15-4  governor; and
   15-5              (2)  perform other functions relating to the job
   15-6  training, employment, and related programs as assigned by the
   15-7  governor.
   15-8        Sec. 303.022 <301.022>.  General Duties of Department.  The
   15-9  department has primary responsibility for implementation and
  15-10  management of the job training program.  The department shall
  15-11  perform other functions relating to the job training program as
  15-12  assigned by the governor.
  15-13        Sec. 303.023 <301.023>.  Composition of State Job Training
  15-14  Coordinating Council; Meetings.  (a)  The governor shall appoint
  15-15  the members of the State Job Training Coordinating Council in
  15-16  accordance with the federal act.  The state council may not have
  15-17  more than 40 members, including the presiding officer.
  15-18        (b)  The state council shall meet at least once quarterly.
  15-19        Sec. 303.024 <301.024>.  Duties of State Council.  The state
  15-20  council shall:
  15-21              (1)  develop and recommend statewide goals and program
  15-22  objectives;
  15-23              (2)  identify needs for training and employment
  15-24  services;
  15-25              (3)  review operations of local programs and state
  15-26  agencies providing job training, employment, and related programs
  15-27  identified in the federal act;
   16-1              (4)  establish standards for coordinating program
   16-2  planning and operations;
   16-3              (5)  evaluate the results of state and local training
   16-4  and employment services;
   16-5              (6)  develop and recommend to the governor the state's
   16-6  coordination and special services plan;
   16-7              (7)  perform the functions assigned to the state job
   16-8  training coordinating council for the job opportunities and basic
   16-9  skills program under Title IV of the Social Security Act (42 U.S.C.
  16-10  Section 681 et seq.);
  16-11              (8)  perform the functions of the advisory council
  16-12  required under the Wagner-Peyser Act (29 U.S.C. Section 49), as
  16-13  implemented under Subtitle A (Texas Unemployment Compensation Act);
  16-14              (9)  assist each private industry council in developing
  16-15  programs to serve AFDC recipients;
  16-16              (10)  develop conflict-of-interest guidelines relating
  16-17  to the participation of a member of a private industry council in a
  16-18  contract with the service delivery area administered by that
  16-19  private industry council; and
  16-20              (11)  perform functions relating to job training,
  16-21  employment, and related programs as required by the federal act or
  16-22  as assigned by the governor.
  16-23        Sec. 303.025 <301.025>.  Submission of Agency Information to
  16-24  State Council.  A state agency providing an employment, job
  16-25  training, or related program shall:
  16-26              (1)  provide to the state council information for
  16-27  planning, reviewing program operations, and evaluating program
   17-1  results as required by the governor; and
   17-2              (2)  submit the agency's plans to the state council.
   17-3        Sec. 303.026 <301.026>.  Monitoring Committee; Submission of
   17-4  Agency Information.  (a)  A joint committee appointed by the
   17-5  speaker of the house of representatives and the lieutenant governor
   17-6  shall monitor the progress of the implementation of this chapter.
   17-7  The committee shall recommend:
   17-8              (1)  any necessary legislative action or remedies for
   17-9  the next regular session of the legislature; and
  17-10              (2)  congressional remedies.
  17-11        (b)  To monitor implementation of this chapter as required by
  17-12  Subsection (a), the committee may oversee each employment, job
  17-13  training, and related program conducted by a state agency.  Each
  17-14  state agency that conducts such a program shall cooperate fully
  17-15  with the committee and shall submit information and reports to the
  17-16  committee as requested by the committee.
  17-17        Sec. 303.027 <301.027>.  Submission of Audit Information to
  17-18  Committee.  (a)  To obtain information necessary to monitor the
  17-19  progress of the implementation of this chapter, the committee is
  17-20  entitled to receive the results of audits that relate to state and
  17-21  local job training plans.  The committee may prescribe the form in
  17-22  which the results are reported to the committee.
  17-23        (b)  The state auditor shall submit to the committee the
  17-24  results of a financial audit, effectiveness audit, or compliance
  17-25  audit conducted under Section 321.013, Government Code, that relate
  17-26  to the operation of an employment, job training, or related program
  17-27  administered by a state agency.
   18-1        (c)  The private industry council and appropriate chief
   18-2  elected official of each service delivery area shall submit to the
   18-3  state auditor, in the manner directed by the state auditor, the
   18-4  results of an audit conducted under audit procedures established
   18-5  under Section 303.052(b) <301.052(b)> that relates to the operation
   18-6  of the service delivery area's program of job training, employment,
   18-7  or related services.  The state auditor shall compile a summary of
   18-8  audit results from the information received from each service
   18-9  delivery area and shall submit the summary in writing to the
  18-10  committee.
  18-11        Sec. 303.028 <301.028>.  POLICIES AND RULES.  (a)  The
  18-12  governor may adopt policies <rules> to implement this chapter and
  18-13  the federal act.
  18-14        (b)  The commissioner shall adopt necessary rules for the
  18-15  implementation and management of the job training program.
  18-16        Sec. 303.029.  CONTESTED CASES.  A proceeding of the
  18-17  department involving the job training program is not subject to the
  18-18  provisions of Chapter 2001, Government Code, relating to contested
  18-19  cases.
  18-20              (Sections 303.030-303.040 <301.029-301.040>
  18-21                        reserved for expansion)
  18-22               SUBCHAPTER C.  PROGRAM DELIVERY SYSTEM--
  18-23                   STATE AND LOCAL RESPONSIBILITIES
  18-24        Sec. 303.041 <301.041>.  Designation of Service Delivery
  18-25  Areas.  The governor shall designate service delivery areas
  18-26  according to the procedures established by the federal act so that:
  18-27              (1)  each service delivery area is composed of one or
   19-1  more units of local government within which programs can be
   19-2  efficiently and effectively provided;
   19-3              (2)  each service delivery area meets the federal act
   19-4  requirements for the establishment of a service delivery area;
   19-5              (3)  the number of service delivery areas, to the
   19-6  extent feasible, is kept to a minimum for administrative
   19-7  efficiency; and
   19-8              (4)  the size of each service delivery area entitles
   19-9  the area to receive an allocation of funds sufficient to plan and
  19-10  operate an effective local program, as determined by the governor.
  19-11        Sec. 303.042 <301.042>.  Certification of Private Industry
  19-12  Councils.  The governor shall certify a private industry council in
  19-13  each service delivery area when the governor determines that the
  19-14  appointment procedures and composition of the membership of the
  19-15  private industry council are consistent with the requirements of
  19-16  the federal act.
  19-17        Sec. 303.043 <301.043>.  Standards for Local Administrative
  19-18  Entity.  The governor shall prescribe standards for the selection
  19-19  of a local entity to administer programs authorized under the
  19-20  federal act to ensure that the entity can:
  19-21              (1)  develop plans and provide for efficient and
  19-22  effective programs;
  19-23              (2)  provide accurate management information when
  19-24  required; and
  19-25              (3)  properly disburse, account for, and control all
  19-26  fund expenditures.
  19-27        Sec. 303.044 <301.044>.  Composition of Private Industry
   20-1  Councils.  (a)  The appropriate chief elected officials in each
   20-2  service delivery area shall select the members and the initial size
   20-3  of the private industry council for the area in accordance with
   20-4  procedures specified in the federal act.
   20-5        (b)  Each private industry council must include a
   20-6  representative of the local Texas Department of Human Services
   20-7  region.
   20-8        Sec. 303.045 <301.045>.  Agreement for Local Procedures.  The
   20-9  appropriate chief elected officials in a service delivery area
  20-10  shall enter into an agreement with the private industry council of
  20-11  the area to determine procedures for:
  20-12              (1)  the selection of the grant recipient, the planning
  20-13  entity, and the administrative entity for the service delivery
  20-14  area; and
  20-15              (2)  the development of the local job training plan.
  20-16        Sec. 303.046 <301.046>.  Preparation and Submission of Local
  20-17  Plans.  The appropriate chief elected officials in each service
  20-18  delivery area and the private industry council of the area shall,
  20-19  in accordance with their agreement:
  20-20              (1)  prepare a plan that provides a comprehensive
  20-21  program of job training, employment, and related services in
  20-22  response to the needs of the eligible persons within the service
  20-23  delivery area;
  20-24              (2)  submit the plan before the 120th day before the
  20-25  beginning date of the plan to the committee, each house of the
  20-26  legislature, and other entities as prescribed by the federal act;
  20-27  and
   21-1              (3)  develop jointly with the Texas State Employment
   21-2  Service those components of the state plan required under the
   21-3  Wagner-Peyser Act (29 U.S.C.  Section 49g) that are applicable to
   21-4  that service delivery area.
   21-5        Sec. 303.047 <301.047>.  Approval of Local Plan.  The
   21-6  governor shall approve or disapprove a final local job training
   21-7  plan or modification according to the standards established by the
   21-8  federal act.
   21-9        Sec. 303.048 <301.048>.  Local Implementation; Service
  21-10  Delivery Area Coordination.  (a)  The appropriate chief elected
  21-11  officials in each service delivery area and the private industry
  21-12  council for the area shall:
  21-13              (1)  allocate available resources to its program of job
  21-14  training, employment, and related services;
  21-15              (2)  develop procedures and standards for the selection
  21-16  of eligible participants and their eligibility determination; and
  21-17              (3)  select service providers with a demonstrated
  21-18  capability to provide effective services and achieve performance
  21-19  goals.
  21-20        (b)  If a single labor market area contains more than one
  21-21  service delivery area, the appropriate chief elected officials and
  21-22  the private industry council for each of the applicable service
  21-23  delivery areas shall coordinate their activities as required by the
  21-24  federal act.
  21-25        Sec. 303.049 <301.049>.  Governor's Coordination and Special
  21-26  Services Plan and Activities.  (a)  The governor or the governor's
  21-27  delegated agency shall:
   22-1              (1)  prepare a statement of goals and objectives for
   22-2  job training and placement programs;
   22-3              (2)  provide specifications for the design,
   22-4  development, and operation of a statewide uniform labor market
   22-5  information system to facilitate the timely availability of
   22-6  employment and training information throughout the state;
   22-7              (3)  develop and provide to service delivery areas
   22-8  information on a state and local basis regarding economic,
   22-9  industrial, and labor market conditions;
  22-10              (4)  plan, provide for the operation of, and evaluate
  22-11  special model or demonstration programs, including programs
  22-12  receiving financial assistance from private sources;
  22-13              (5)  make available to service delivery areas, with or
  22-14  without reimbursement and on request, appropriate information and
  22-15  technical assistance to assist in developing and implementing plans
  22-16  and programs; and
  22-17              (6)  provide preservice and in-service training to
  22-18  improve the professional capability of managers and technical staff
  22-19  of state agencies, local administrative entities, private industry
  22-20  councils, and contractors involved in planning and operating
  22-21  programs.
  22-22        (b)  The governor shall submit a coordination and special
  22-23  services plan to the United States secretary of labor in accordance
  22-24  with the federal act.
  22-25        Sec. 303.050 <301.050>.  Review and Comment by Legislature.
  22-26  (a)  The legislature may review and comment on the job training
  22-27  plan submitted from each service delivery area.
   23-1        (b)  The governor shall submit the governor's coordination
   23-2  and special services plan to the lieutenant governor and the
   23-3  speaker of the house of representatives not later than February 1
   23-4  of each odd-numbered year.  The lieutenant governor and speaker
   23-5  shall refer the plan to the appropriate senate and house committees
   23-6  for review and comment.
   23-7        Sec. 303.051 <301.051>.  Performance Standard Variations.
   23-8  The governor shall prescribe, within parameters established by the
   23-9  secretary, variations in the performance standards for programs
  23-10  under the federal act.  The variations must recognize the economic,
  23-11  geographic, and demographic differences in the various regions of
  23-12  the state.
  23-13        Sec. 303.052 <301.052>.  Program Recordkeeping,
  23-14  Accountability, and Audits.  (a)  The governor or the governor's
  23-15  delegated agency shall:
  23-16              (1)  establish and maintain a computerized statewide
  23-17  management information system to collect and maintain the
  23-18  financial, participant, and program information necessary to ensure
  23-19  monthly program accountability;
  23-20              (2)  develop and formally issue procedures to ensure
  23-21  consistency of definitions, formats, recordkeeping, information
  23-22  gathering, and reporting, including procedures concerning:
  23-23                    (A)  planning and contracting;
  23-24                    (B)  labor market information;
  23-25                    (C)  financial management;
  23-26                    (D)  participant tracking;
  23-27                    (E)  monitoring;
   24-1                    (F)  evaluations;
   24-2                    (G)  audits;
   24-3                    (H)  complaints and grievance procedures;
   24-4                    (I)  personnel standards, including equal
   24-5  opportunity compliance; and
   24-6                    (J)  property management;
   24-7              (3)  at least once annually, monitor or provide for the
   24-8  monitoring of each grant recipient and contractor to ensure
   24-9  compliance; and
  24-10              (4)  at least once every two years, provide for an
  24-11  independent audit of each recipient of funds authorized under the
  24-12  federal act.
  24-13        (b)  The appropriate chief elected officials in each service
  24-14  delivery area and the private industry council of the area shall,
  24-15  in accordance with their agreement:
  24-16              (1)  prepare and submit an annual report to the
  24-17  governor in accordance with the federal act;
  24-18              (2)  establish procedures for providing oversight of
  24-19  all programs conducted under the local job training plan;
  24-20              (3)  maintain records and a management information
  24-21  system designed to facilitate uniform compilation and analysis of
  24-22  programmatic and financial information for the service delivery
  24-23  area, consistent with federal and state requirements; and
  24-24              (4)  establish fiscal, audit, and debt-collection
  24-25  procedures to ensure the proper disbursal, use, and accounting of
  24-26  all funds provided under the federal act.
  24-27        Sec. 303.053 <301.053>.  Programs for Student Dropouts.
   25-1  (a)  To provide educational services to student dropouts, the
   25-2  department may contract with public community and junior colleges
   25-3  and private, nonprofit organizations that conduct model or
   25-4  exemplary youth programs that meet the unique educational needs of
   25-5  student dropouts.  In entering into a contract, the department must
   25-6  follow the same procedure as a state agency contracting with a
   25-7  private consultant under Subchapter B, Chapter 2254, Government
   25-8  Code <454, Acts of the 65th Legislature, Regular Session, 1977
   25-9  (Article 6252-11c, Vernon's Texas Civil Statutes)>.
  25-10        (b)  A contract entered into under this section must be
  25-11  structured to encourage partnerships among public school districts,
  25-12  public community and junior colleges, private industry councils,
  25-13  and the private, nonprofit organizations.
  25-14        (c)  A program provided under a contract entered into under
  25-15  this section must provide services that attempt to:
  25-16              (1)  return student dropouts to the public school
  25-17  system;
  25-18              (2)  prepare student dropouts to complete the
  25-19  requirements for a general equivalency or adult proficiency level
  25-20  diploma; and
  25-21              (3)  prepare student dropouts to obtain permanent
  25-22  employment.
  25-23        (d)  A program provided under a contract entered into under
  25-24  this section must provide a curriculum that is flexible and
  25-25  innovative and that provides training in basic skills.
  25-26        (e)  An organization providing a program under this section
  25-27  shall document its overall strategy and success rate in educating
   26-1  student dropouts and provide this information to each school
   26-2  district in the area the organization serves.  The organization
   26-3  shall request information from each of the school districts
   26-4  regarding the referral process, curriculum, and instructional
   26-5  resources of the program.
   26-6        (f)  The primary standard to be used in determining the
   26-7  success rate of a program under this section is the rate at which
   26-8  student dropouts in the program:
   26-9              (1)  return to public school;
  26-10              (2)  acquire a general equivalency or adult proficiency
  26-11  level diploma;
  26-12              (3)  obtain permanent employment; and
  26-13              (4)  are not being arrested or prosecuted for a crime.
  26-14        SECTION 1.04.  Chapter 302, Labor Code, is redesignated as
  26-15  Chapter 304, Labor Code, and amended to read as follows:
  26-16                    CHAPTER 304 <302>.  EMPLOYMENT
  26-17                  COUNSELING FOR DISPLACED HOMEMAKERS
  26-18        Sec. 304.001.  DEFINITION <302.001.  ><Definitions>.  In this
  26-19  chapter, "displaced<:>
  26-20              <(1)  "Commission" means the Texas Employment
  26-21  Commission.>
  26-22              <(2)  "Displaced> homemaker" means a person who:
  26-23              (1) <(A)>  has worked without pay as a homemaker for
  26-24  the person's family;
  26-25              (2) <(B)>  is not gainfully employed;
  26-26              (3) <(C)>  has had, or would have, difficulty in
  26-27  obtaining employment; and
   27-1              (4) <(D)>  has depended on:
   27-2                    (A) <(i)>  the income of a family member for
   27-3  financial support and has lost that income; or
   27-4                    (B) <(ii)>  government assistance as the parent
   27-5  of dependent children and is no longer eligible for that
   27-6  assistance.
   27-7        Sec. 304.002 <302.002>.  Job Counseling Program.  (a)  The
   27-8  department <commission>, through a special assistance job
   27-9  counseling program, shall:
  27-10              (1)  provide counseling for displaced homemakers;
  27-11              (2)  assist displaced homemakers in obtaining training
  27-12  and education; and
  27-13              (3)  place displaced homemakers in suitable employment.
  27-14        (b)  The counseling must:
  27-15              (1)  consider and build on the skills and experiences
  27-16  of the homemaker; and
  27-17              (2)  prepare the person, through employment counseling,
  27-18  to reenter the paid work force and develop and improve job skills.
  27-19        (c)  The department <commission> shall design the program
  27-20  specifically for persons reentering the paid work force after a
  27-21  number of years as homemakers to enable them to assume or resume a
  27-22  valuable role in the paid work force commensurate with the
  27-23  homemakers' talents and abilities.
  27-24        (d)  The department <commission> may not charge a fee for
  27-25  participation in the program by a displaced homemaker.
  27-26        Sec. 304.003 <302.003>.  Personnel; Office.  The department
  27-27  <commission> shall use its personnel, services, facilities, and
   28-1  equipment to operate the job counseling program.
   28-2        Sec. 304.004 <302.004>.  Cooperation by State Agencies and
   28-3  Political Subdivisions.  State agencies and political subdivisions
   28-4  of the state shall cooperate with the department <commission> in
   28-5  obtaining suitable employment for displaced homemakers counseled by
   28-6  the department <commission>.
   28-7        SECTION 1.05.  Chapter 216, Labor Code, is moved from
   28-8  Subtitle A, Title 4, Labor Code, to Subtitle B of that title,
   28-9  redesignated as Chapter 305, Labor Code, and amended to read as
  28-10  follows:
  28-11          CHAPTER 305 <216>.  COMMUNITIES IN SCHOOLS PROGRAM
  28-12                   SUBCHAPTER A.  GENERAL PROVISIONS
  28-13        Sec. 305.001 <216.001>.  Definitions.  In this chapter:
  28-14              (1)  "Agency" means the Central Education Agency.
  28-15              (2)  "Communities in Schools program" means an
  28-16  exemplary youth dropout prevention program.
  28-17        Sec. 305.002 <216.002>.  Statewide Operation of Program.  It
  28-18  is the intent of the legislature that the Communities in Schools
  28-19  program operate throughout this state.
  28-20              (Sections 305.003-305.010 <216.003-216.010>
  28-21                        reserved for expansion)
  28-22                  SUBCHAPTER B.  OPERATION OF PROGRAM
  28-23        Sec. 305.011 <216.011>.  State Coordinator.  The commissioner
  28-24  <administrator of the commission> shall appoint a state coordinator
  28-25  for the Communities in Schools program.
  28-26        Sec. 305.012 <216.012>.  Duties of State Coordinator.  The
  28-27  state coordinator shall:
   29-1              (1)  coordinate the efforts of social service
   29-2  organizations and agencies and of public school personnel to
   29-3  provide services to students who are at risk of dropping out of
   29-4  school or engaging in delinquent conduct;
   29-5              (2)  set standards for the Communities in Schools
   29-6  program;
   29-7              (3)  obtain information from each participating school
   29-8  district to determine necessary program changes;
   29-9              (4)  promote and market the program in communities in
  29-10  which the program is not established;
  29-11              (5)  help communities that want to participate in the
  29-12  program establish a local funding base; and
  29-13              (6)  train a program director for each participating
  29-14  community.
  29-15        Sec. 305.013 <216.013>.  Agency Cooperation; Memorandum of
  29-16  Understanding.  (a)  The agency and the department <commission>
  29-17  shall work together to maximize the effectiveness of the
  29-18  Communities in Schools program.
  29-19        (b)  The agency and the department <commission> shall develop
  29-20  and mutually agree to a memorandum of understanding to clearly
  29-21  define the responsibilities of each agency under this chapter.  The
  29-22  memorandum must address:
  29-23              (1)  the role of the department <commission> in
  29-24  encouraging local business to participate in local Communities in
  29-25  Schools programs;
  29-26              (2)  the role of the agency in obtaining information
  29-27  from participating school districts;
   30-1              (3)  the use of federal or state funds available to the
   30-2  agency or the department <commission> for programs of this nature;
   30-3  and
   30-4              (4)  other areas identified by the agency and the
   30-5  commissioner <commission> that require clarification.
   30-6        (c)  The agency and the commissioner <commission> shall adopt
   30-7  rules to implement the memorandum and shall update the memorandum
   30-8  and rules annually.
   30-9              (Sections 305.014-305.020 <216.014-216.020>
  30-10                        reserved for expansion)
  30-11      SUBCHAPTER C.  PARTICIPATION IN PROGRAM BY CERTAIN SCHOOLS
  30-12        Sec. 305.021 <216.021>.  Designation of Participating
  30-13  Schools.  (a)  The state coordinator, in cooperation with the
  30-14  program directors in the counties or cities in which a Communities
  30-15  in Schools program is <was> established on September 1, 1993
  30-16  <1991>, shall designate <not more than 32 elementary schools and 76
  30-17  secondary schools in those counties> to participate in the program:
  30-18              (1)  the campuses designated on September 1, 1991, for
  30-19  original participation in the program for continuation in the
  30-20  program; and
  30-21              (2)  not more than 135 additional elementary and
  30-22  secondary schools in those counties or cities.
  30-23        (b)  The state coordinator, in cooperation with the program
  30-24  directors in six <four> additional counties or cities designated by
  30-25  the state coordinator, shall designate additional elementary and
  30-26  secondary schools to participate in the Communities in Schools
  30-27  program.
   31-1        (c)  The designation of secondary schools to participate in
   31-2  the Communities in Schools program must be distributed among high
   31-3  schools and junior high or middle schools.
   31-4        Sec. 305.022 <216.022>.  Participation in Program.  An
   31-5  elementary or secondary school designated under Section 305.021
   31-6  <216.021> shall participate in the Communities in Schools program
   31-7  if the number of students enrolled in the school who are at risk of
   31-8  dropping out of school is equal to at least 10 percent of the
   31-9  number of students in average daily attendance at the school, as
  31-10  determined by the agency.
  31-11              (Sections 305.023-305.030 <216.023-216.030>
  31-12                        reserved for expansion)
  31-13                    SUBCHAPTER D.  PROGRAM FUNDING
  31-14        Sec. 305.031 <216.031>.  Donations to Program.  (a)  The
  31-15  department <commission> may accept a donation of services or money
  31-16  or other property that the commissioner <commission> determines
  31-17  furthers the lawful objectives of the department <commission> in
  31-18  connection with the Communities in Schools program.
  31-19        (b)  Donations must be accepted in an open meeting by <a
  31-20  majority of the voting members of> the commissioner <commission>.
  31-21  The donation, with the name of the donor and the purpose of the
  31-22  donation, must be reported in the public records of the department
  31-23  <commission>.
  31-24        SECTION 1.06.  Chapter 217, Labor Code, is moved from
  31-25  Subtitle A, Title 4, Labor Code, to Subtitle B of that title,
  31-26  redesignated as Chapter 306, Labor Code, and amended to read as
  31-27  follows:
   32-1     CHAPTER 306 <217>.  PROJECT RIO (REINTEGRATION OF OFFENDERS)
   32-2        Sec. 306.001 <217.001>.  Definitions.  In this chapter:
   32-3              (1)  "Department" means the Texas Department of
   32-4  Criminal Justice.
   32-5              (2)  "Institutional division" means the institutional
   32-6  division of the department.
   32-7              (3)  "Project RIO" means the project for reintegration
   32-8  of offenders.
   32-9        Sec. 306.002 <217.002>.  Project Rio.  The project for
  32-10  reintegration of offenders is a statewide employment referral
  32-11  program designed to reintegrate into the labor force persons
  32-12  formerly confined in the institutional division.
  32-13        Sec. 306.003 <217.003>.  Administration.  The department and
  32-14  the commissioner <commission> shall cooperate to maximize the
  32-15  effectiveness of Project RIO. For that purpose, the commissioner
  32-16  <commission> shall administer the project.
  32-17        Sec. 306.004 <217.004>.  Memorandum of
  32-18  Understanding--Adoption.  (a)  The department and the Texas
  32-19  Workforce Development Department <commission> shall adopt a
  32-20  memorandum of understanding that establishes the respective
  32-21  responsibilities of each agency and of the divisions within the
  32-22  department.
  32-23        (b)  The commissioner <commission> shall coordinate the
  32-24  development of the memorandum of understanding.  The department
  32-25  shall adopt rules as necessary to implement the memorandum and may
  32-26  amend the memorandum and those rules as necessary.
  32-27        Sec. 306.005 <217.005>.  Memorandum of
   33-1  Understanding--Contents.  (a)  The memorandum of understanding must
   33-2  establish the role of:
   33-3              (1)  the institutional division in ascertaining and
   33-4  encouraging an inmate's chances for employment by:
   33-5                    (A)  providing vocational and educational
   33-6  assessment for the person while incarcerated in the division;
   33-7                    (B)  developing a skills enhancement program for
   33-8  the person while incarcerated, in cooperation with other
   33-9  governmental, educational, and private entities, using available
  33-10  public or private financial resources authorized by statute; and
  33-11                    (C)  referring the person on release to the
  33-12  project through the person's parole officer;
  33-13              (2)  the community justice assistance division and the
  33-14  pardons and paroles division of the department in:
  33-15                    (A)  encouraging and referring persons to the
  33-16  project; and
  33-17                    (B)  ensuring that those persons participate in
  33-18  the project and avail themselves of its services; and
  33-19              (3)  the Texas Workforce Development Department
  33-20  <commission> in developing and maintaining a statewide network for
  33-21  finding positions of employment that require the skills possessed
  33-22  by project participants and in helping those participants to secure
  33-23  employment.
  33-24        (b)  The memorandum also must establish the methods by which
  33-25  the Texas Workforce Development Department <commission> shall
  33-26  coordinate its efforts under this chapter with the operations of
  33-27  service providers operating under Chapter 303 <301> (Texas
   34-1  Job-Training Partnership Act).
   34-2        Sec. 306.006 <217.006>.  Project Director.  (a)  The
   34-3  commissioner <administrator of the commission> shall designate the
   34-4  director of Project RIO to coordinate the efforts of the affected
   34-5  state agencies and expedite the delivery of services to
   34-6  participants in the project, including prospective employers.
   34-7        (b)  The project director shall:
   34-8              (1)  propose, for adoption by the commissioner
   34-9  <commission>, standards and guidelines for the operation of the
  34-10  project;
  34-11              (2)  obtain information from appropriate state agencies
  34-12  and offices affiliated with the project to determine any necessary
  34-13  changes in the project;
  34-14              (3)  disseminate information statewide about the
  34-15  project; and
  34-16              (4)  train <commission> staff of the Texas Workforce
  34-17  Development Department to assist in the operation of affiliated
  34-18  services.
  34-19        SECTION 1.07.  Subchapter F, Chapter 202, Labor Code, is
  34-20  transferred from Chapter 202, Labor Code, to Subtitle B, Title 4,
  34-21  Labor Code, redesignated as Chapter 307, and amended to read as
  34-22  follows:
  34-23             CHAPTER 307.  TEXAS STATE EMPLOYMENT SERVICE
  34-24                  <SUBCHAPTER F.  EMPLOYMENT SERVICE>
  34-25        Sec. 307.001 <202.081>.  TEXAS STATE EMPLOYMENT SERVICE.  (a)
  34-26  The Texas State Employment Service is a division of the department
  34-27  <commission>.
   35-1        (b)  The department <commission>, through the division, shall
   35-2  establish and maintain free public employment offices as necessary
   35-3  to perform the commissioner's <commission's> duties under the
   35-4  Wagner-Peyser Act (29 U.S.C. Section 49 et seq.).  The number and
   35-5  locations of the public employment offices shall be determined by
   35-6  the commissioner <commission> as necessary for the proper
   35-7  administration of this subtitle.
   35-8        Sec. 307.002 <202.082>.  EMPLOYMENT SERVICES AGREEMENTS.  (a)
   35-9  To establish and maintain public employment offices under this
  35-10  chapter <subchapter>, the commissioner <commission> may enter into
  35-11  an agreement with any political subdivision of the state or with a
  35-12  private or nonprofit organization and, as a part of the agreement,
  35-13  accept money, services, or quarters as a contribution to the
  35-14  employment service account.
  35-15        (b)  To establish and maintain, or assist in the
  35-16  establishment and maintenance of, public employment offices within
  35-17  a county or other political subdivision of this state, the
  35-18  commissioners court of the county or the governing body of the
  35-19  other political subdivision may enter into agreements with the
  35-20  Texas State Employment Service on terms and conditions agreed to by
  35-21  the commissioners court or other governing body and the Texas State
  35-22  Employment Service.  The county or other political subdivision may
  35-23  employ means and appropriate and spend funds as necessary to
  35-24  establish and operate the public employment offices, and may
  35-25  provide, as part of the agreement, payment for:
  35-26              (1)  the rent of premises;
  35-27              (2)  services rendered;
   36-1              (3)  the purchase of equipment; and
   36-2              (4)  any other purpose considered advisable by the
   36-3  commissioners court or other governing body.
   36-4        <(c)  The penalty provisions of this subtitle, including the
   36-5  provisions of Chapters 213 and 214, do not apply to an action or
   36-6  omission under Subsection (b).>
   36-7        SECTION 1.08.  Section 203.153, Labor Code, is transferred
   36-8  from Chapter 203, Labor Code, to Subtitle B, Title 4, Labor Code,
   36-9  redesignated as Section 307.003, and amended to read as follows:
  36-10        Sec. 307.003 <203.153>.  EMPLOYMENT SERVICE FINANCING.  Money
  36-11  received by the state under the Wagner-Peyser Act (29 U.S.C.
  36-12  Section 49 et seq.) shall be deposited to the credit of the
  36-13  employment service account in the general revenue <of the
  36-14  administration> fund.  The money in the account may be used by the
  36-15  commissioner <commission> as provided by this chapter <Subchapter F
  36-16  of Chapter 202> and the Wagner-Peyser Act.
  36-17        SECTION 1.09.  Sections 209.045 and 209.046, Labor Code, are
  36-18  amended to read as follows:
  36-19        Sec. 209.045.  EMPLOYMENT SERVICE REFERRALS TO SUITABLE WORK.
  36-20  The Texas State Employment Service <employment service> shall refer
  36-21  a claimant entitled to extended benefits to suitable work that
  36-22  meets the standards prescribed in Sections 209.046, 209.047(a), and
  36-23  209.047(b).
  36-24        Sec. 209.046.  EXCEPTIONS TO REQUIREMENT TO ACCEPT OR APPLY
  36-25  FOR SUITABLE WORK.  An individual may not be denied extended
  36-26  benefits for failure to accept a job offer of suitable work or
  36-27  apply for suitable work if:
   37-1              (1)  the work was not offered to the individual in
   37-2  writing and was not listed with the Texas State Employment Service
   37-3  <employment service>; or
   37-4              (2)  failure to accept or apply for the work would not
   37-5  result in a denial of benefits under the applicable suitable work
   37-6  requirements for a regular benefit claimant in Section 207.008, to
   37-7  the extent that the standards of suitability in that section are
   37-8  not inconsistent with Section 209.047.
   37-9                  ARTICLE 2.  SKILLS DEVELOPMENT FUND
  37-10                         (Article 2 reserved)
  37-11           ARTICLE 3.  CONFORMING AMENDMENTS--WORKFORCE AND
  37-12                     ECONOMIC COMPETITIVENESS ACT
  37-13        SECTION 3.01.  Section 2.02(b), Workforce and Economic
  37-14  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  37-15  Statutes), is amended to read as follows:
  37-16        (b)  The council shall be composed of:
  37-17              (1)  the following ex officio voting members:
  37-18                    (A)  the commissioner of education;
  37-19                    (B)  the commissioner of higher education;
  37-20                    (C)  the commissioner of <health and> human
  37-21  services;
  37-22                    (D)  the executive director of the Texas
  37-23  Department of Commerce; <and>
  37-24                    (E)  the administrator of the Texas Employment
  37-25  Commission; and
  37-26                    (F)  the commissioner of workforce development;
  37-27              (2)  six voting members appointed by the governor who
   38-1  represent education, at least one of whom represents local public
   38-2  education, one of whom represents public postsecondary education,
   38-3  one of whom represents secondary vocational education, and one of
   38-4  whom represents postsecondary vocational education;
   38-5              (3)  seven voting members who represent organized labor
   38-6  appointed by the governor based on recommendations made by
   38-7  recognized labor organizations;
   38-8              (4)  seven voting members appointed by the governor who
   38-9  represent business and industry, including business members serving
  38-10  on local workforce development boards or private industry councils;
  38-11              (5)  one voting member appointed by the governor who
  38-12  represents a community-based organization;
  38-13              (6)  one voting member appointed by the governor who
  38-14  represents a joint-sponsored apprenticeship program as defined by
  38-15  the United States Department of Labor's Bureau of Apprenticeship
  38-16  and Training appointed from a list of three nominees submitted to
  38-17  the governor by the Apprenticeship and Training Association of
  38-18  Texas;
  38-19              (7)  one voting member appointed by the governor who
  38-20  represents a community-based adult literacy organization;
  38-21              (8)  one voting member appointed by the governor who
  38-22  represents adult basic and continuing education programs;
  38-23              (9)  six voting members appointed by the governor each
  38-24  of whom represents not more than one of the following categories:
  38-25                    (A)  literacy groups;
  38-26                    (B)  local welfare or public housing agencies;
  38-27                    (C)  units of local government;
   39-1                    (D)  adult education organizations;
   39-2                    (E)  teachers or counselors;
   39-3                    (F)  local service delivery organizations;
   39-4                    (G)  special needs populations;
   39-5                    (H)  rural and agricultural organizations;
   39-6                    (I)  proprietary schools;
   39-7                    (J)  members of the state legislature; and
   39-8                    (K)  other groups and organizations; and
   39-9              (10)  the following ex officio nonvoting members:
  39-10                    (A)  the chair of the State Board of Education;
  39-11                    (B)  the chair of the Texas Higher Education
  39-12  Coordinating Board;
  39-13                    (C)  the presiding officer of the Texas Board of
  39-14  Human Services;
  39-15                    (D)  the presiding officer of the governing board
  39-16  of the Texas Department of Commerce;
  39-17                    (E)  the chair of the Texas Employment
  39-18  Commission;
  39-19                    (F)  the commissioner of the Texas Rehabilitation
  39-20  Commission; <and>
  39-21                    (G)  the executive director of the Texas
  39-22  Commission for the Blind; and
  39-23                    (H)  the commissioner of workforce development.
  39-24        SECTION 3.02.  Section 2.06(a), Workforce and Economic
  39-25  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  39-26  Statutes), is amended to read as follows:
  39-27        (a)  The council shall:
   40-1              (1)  promote the development of a well-educated, highly
   40-2  skilled workforce in this state through literacy, adult basic
   40-3  education, community education, apprenticeship, and
   40-4  state-of-the-art occupational skills education and training
   40-5  programs;
   40-6              (2)  serve as an advocate for the development of an
   40-7  integrated workforce development system to provide quality services
   40-8  addressing the needs of business and workers in this state;
   40-9              (3)  promote and assist in the development of an
  40-10  industry-based skills standards and certification system for
  40-11  occupations requiring less than a baccalaureate-level education and
  40-12  training;
  40-13              (4)  promote the development of high productivity
  40-14  workplaces in this state;
  40-15              (5)  recommend to the governor the components of a
  40-16  school and training-to-work transition process;
  40-17              (6)  develop and recommend to the governor a single
  40-18  strategic plan that establishes the framework for the budgeting and
  40-19  operation of all workforce development programs administered by
  40-20  agencies represented on the council;
  40-21              (7)  recommend to the governor the designation of
  40-22  workforce development areas for the local planning and delivery of
  40-23  workforce development programs;
  40-24              (8)  identify and recommend to the governor incentives
  40-25  to encourage the consolidation of local boards, councils, and
  40-26  committees;
  40-27              (9)  <design and implement a state-local planning
   41-1  process for the state's workforce training and services programs;>
   41-2              <(10)>  review local workforce training and services
   41-3  plans and make recommendations to the governor for approval;
   41-4              (10) <(11)>  implement a statewide system for
   41-5  evaluating the effectiveness of all workforce development programs
   41-6  using the administrative records of the state's unemployment
   41-7  compensation program and other sources as appropriate;
   41-8              (11) <(12)>  support research and demonstration
   41-9  projects designed to develop new programs and approaches to service
  41-10  delivery;
  41-11              <(13)  provide for training and professional
  41-12  development for council members, local chief elected officials,
  41-13  workforce development boards and staff, and private industry
  41-14  councils and staff;>
  41-15              (12) <(14)>  serve as an advocate at the state and
  41-16  federal levels for the local workforce development boards;
  41-17              (13) <(15)>  establish and operate a comprehensive
  41-18  labor market information system that serves employers, students,
  41-19  workers, and state and local planning  organizations;
  41-20              (14) <(16)>  ensure that occupational skills training
  41-21  is provided in occupations that are currently in demand at the
  41-22  local level and is directed toward high-skill and high-wage jobs;
  41-23              <(17)  develop and recommend to the governor and
  41-24  legislature not later than November 15, 1994, a plan for
  41-25  consolidating all workforce development programs in this state;>
  41-26              (15) <(18)>  oversee the operation of the state's
  41-27  workforce development programs to assess the degree to which the
   42-1  programs are effective in achieving state and local goals and
   42-2  objectives;
   42-3              (16) <(19)>  develop and recommend to the governor
   42-4  criteria for the establishment of local workforce development
   42-5  boards;
   42-6              <(20)  develop objective criteria for granting waivers
   42-7  allowed under this Act;>
   42-8              <(21)  develop and recommend to the governor a plan to
   42-9  ensure client accessibility to workforce programs that includes a
  42-10  uniform statewide client application system for determining an
  42-11  applicant's eligibility for a workforce program for which state or
  42-12  federal financial assistance is available;> and
  42-13              (17) <(22)>  carry out the federal and state mandated
  42-14  duties and responsibilities for all advisory councils under
  42-15  applicable federal and state workforce development programs.
  42-16        SECTION 3.03.  Section 2.08, Workforce and Economic
  42-17  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  42-18  Statutes), is repealed.
  42-19        SECTION 3.04.  Section 2.09(d), Workforce and Economic
  42-20  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  42-21  Statutes), is amended to read as follows:
  42-22        (d)  At least annually, the council shall issue an
  42-23  occupation-specific analysis by provider of the job placement
  42-24  performance of each workforce education program for the previous
  42-25  one-year, three-year, and five-year periods to:
  42-26              (1)  each provider of a workforce education program or
  42-27  workforce training and services program;
   43-1              (2)  the Texas Higher Education Coordinating Board for
   43-2  each provider of a workforce education program approved and
   43-3  administered by the board; <and>
   43-4              (3)  each local workforce development board for each
   43-5  provider of workforce training and services within the workforce
   43-6  development area; and
   43-7              (4)  the Texas Workforce Development Department.
   43-8        SECTION 3.05.  Section 2.13(e), Workforce and Economic
   43-9  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  43-10  Statutes), is amended to read as follows:
  43-11        (e)  The executive director of the State Occupational
  43-12  Information Coordinating Council shall be an employee of the
  43-13  council and shall report to the executive director of the council
  43-14  and <shall> provide labor market information, information relevant
  43-15  to workforce program evaluation, and technical assistance to the
  43-16  council and its staff as requested.  <The executive director of the
  43-17  State Occupational Information Coordinating Council may enter into
  43-18  contracts for products and services with State Occupational
  43-19  Information Coordinating Council membership agencies and other
  43-20  organizations if consistent with the state strategic plan.>
  43-21        SECTION 3.06.  Section 4.01, Workforce and Economic
  43-22  Competitiveness Act (Article 5190.7a, Vernon's Texas Civil
  43-23  Statutes), is amended to read as follows:
  43-24        Sec. 4.01.  CREATION OF LOCAL WORKFORCE DEVELOPMENT BOARDS.
  43-25  (a)  The chief elected officials in a workforce development area
  43-26  designated by the governor under Section 3.01 of this Act may form,
  43-27  in accordance with rules established by the council, a local
   44-1  workforce development board to plan and oversee the delivery of all
   44-2  workforce training and services programs and evaluate all workforce
   44-3  development programs in the workforce development area.
   44-4        (b)  Before a local workforce development board may be
   44-5  created, at least three-fourths of the chief elected officials in
   44-6  the workforce development area who represent units of general local
   44-7  government must agree to the creation of the board, including all
   44-8  of the chief elected officials who represent units of general local
   44-9  government having populations of at least 200,000.  The elected
  44-10  officials agreeing to the creation of the board must represent at
  44-11  least 75 percent of the population of the workforce development
  44-12  area.
  44-13        (c)  On agreement regarding the formation of a local
  44-14  workforce development board, the chief elected officials shall
  44-15  reduce the agreement to writing.  The local government agreement
  44-16  shall include:
  44-17              (1)  the purpose for the agreement;
  44-18              (2)  the process that will be used to select the chief
  44-19  elected official who will act on behalf of the other chief elected
  44-20  officials;
  44-21              (3)  the initial size of the local workforce
  44-22  development board;
  44-23              (4)  the process to be used to appoint the board
  44-24  members, which must be consistent with applicable federal and state
  44-25  laws; and
  44-26              (5)  the terms of office of the members of the board.
  44-27        (d) <(c)>  The chief elected officials shall consider the
   45-1  views of all affected local organizations, including private
   45-2  industry councils and quality workforce planning committees, before
   45-3  making a final decision regarding the formation of a local
   45-4  workforce development board.
   45-5        (e) <(d)>  None of the powers and duties granted a workforce
   45-6  development board under this Act may be exercised in a workforce
   45-7  development area until the chief elected officials in that area
   45-8  reach an agreement providing for the establishment of a local
   45-9  workforce development board as provided by Subsection (b) of this
  45-10  section and the board is certified by the governor.
  45-11        (f) <(e)>  A private industry council in an area in which a
  45-12  local workforce development board is not created or in which the
  45-13  chief elective officers are unable to negotiate the establishment
  45-14  of a local workforce development board may not exercise any of the
  45-15  powers granted a local workforce development board by this Act,
  45-16  except for a power granted under the Job Training Partnership Act
  45-17  (29 U.S.C. Section 1501 et seq.).
  45-18             ARTICLE 4.  CONFORMING AMENDMENTS--LABOR CODE
  45-19                         (Article 4 reserved)
  45-20             ARTICLE 5.  CONFORMING AMENDMENTS--OTHER LAWS
  45-21                         (Article 5 reserved)
  45-22                         ARTICLE 6.  REPEALER
  45-23        SECTION 6.01.   (a)  In addition to the new changes in law
  45-24  made by this Act relating to job training and school dropout
  45-25  prevention, this Act conforms certain provisions of the Labor Code
  45-26  relating to those subjects to changes in law made by several Acts
  45-27  of the 73rd Legislature, Regular Session, 1993, as follows:
   46-1              (1)  Sections 305.021(a) and (b), Labor Code, conformed
   46-2  to changes made by Section 1, Chapter 183, Acts of the 73rd
   46-3  Legislature,  Regular Session, 1993;
   46-4              (2)  Section 303.006, Labor Code, added to conform the
   46-5  code to changes made by Section 7.03, Chapter 668, Acts of the 73rd
   46-6  Legislature, Regular Session, 1993;
   46-7              (3)  Section 303.028, Labor Code, conformed to changes
   46-8  made by Sections 29 and 30, Chapter 986, Acts of the 73rd
   46-9  Legislature, Regular Session, 1993; and
  46-10              (4)  Section 303.029, Labor Code, added to conform to
  46-11  changes made by Section 29, Chapter 986, Acts of the 73rd
  46-12  Legislature,  Regular Session, 1993.
  46-13        (b)  The following are repealed:
  46-14              (1)  Section 1, Chapter 183, Acts of the 73rd
  46-15  Legislature, Regular Session, 1993;
  46-16              (2)  Section 7.03, Chapter 668, Acts of the 73rd
  46-17  Legislature, Regular Session, 1993; and
  46-18              (3)  Sections 29 and 30, Chapter 986, Acts of the 73rd
  46-19  Legislature, Regular Session, 1993.
  46-20           ARTICLE 7.  TRANSITION; EFFECTIVE DATE; EMERGENCY
  46-21        SECTION 7.01.  A person serving as the state coordinator for
  46-22  the Communities in Schools program who was appointed by the
  46-23  administrator of the Texas Employment Commission before September
  46-24  1, 1995, may continue to serve in that capacity until January 1,
  46-25  1996.  The commissioner of workforce development shall appoint a
  46-26  person who meets the qualifications for service as the state
  46-27  coordinator not later than January 1, 1996.
   47-1        SECTION 7.02.  The Texas State Employment Service is
   47-2  transferred from the Texas Employment Commission to the Texas
   47-3  Workforce Development Department on the effective date of this Act.
   47-4  All property, records, funds, and staff of the Texas State
   47-5  Employment Service shall be transferred to the Texas Workforce
   47-6  Development Department not later than January 1, 1996.
   47-7        SECTION 7.03.  The initial term of the commissioner of
   47-8  workforce development expires February 1, 1997.
   47-9        SECTION 7.04.  This Act takes effect September 1, 1995.
  47-10        SECTION 7.05.  The importance of this legislation and the
  47-11  crowded condition of the calendars in both houses create an
  47-12  emergency and an imperative public necessity that the
  47-13  constitutional rule requiring bills to be read on three several
  47-14  days in each house be suspended, and this rule is hereby suspended.