JKM C.S.H.B. 2928 75(R)BILL ANALYSIS ECONOMIC DEVELOPMENT C.S.H.B. 2928 By: Coleman 4-18-97 Committee Report (Substituted) BACKGROUND Federal welfare reforms have presented Texas with the challenge of providing jobs to 50% of the state's welfare recipients by the year 2002. The state must meet this challenge by working with Texas businesses to offer on-the-job training and direct work experience to those on public assistance. With appropriate training and new skills, Texas' welfare recipients can move from welfare to work more successfully. PURPOSE To create the self-sufficiency fund for use by public community and technical colleges, community- based organizations, and state extension agencies to develop job training programs for recipients of the financial assistance program for persons with dependent children, businesses and trade unions, and sponsor small and medium-sized business networks and consortiums. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Subtitle B, Title 4, Labor Code, by adding Chapter 308. SELF SUFFICIENCY FUND (fund). Sec. 308.001(a) creates the fund as an account in the general revenue fund for use by public community and technical colleges, community-based organizations, and state extension agencies to: develop customized job-training programs for recipients of financial assistance under Chapter 31, Human Resources Code; develop customized job-training programs for businesses and trade unions; and sponsoring small and medium-sized business networks and consortiums. Subsection (b) states that job-training programs for financial assistance recipients must be designed to enable the recipient to find and apply for existing jobs, and that employers who participate in setting curricula and standards commit to hire graduates of the training program. Subsection (c) states that training programs must ensure that that participants meet state and federal work requirements and that participation in the program is considered meeting the work requirements under Sec.; 31.012, Human Resources Code. Subsection (d) states that training programs shall work with employers to place graduates in employment with wages reasonably calculated to make the graduate independent of public assistance under Chapters 31 and 33, Human Resources Code. Subsection (e) directs the Texas Workforce Commission to administer the program. The executive director, or his appointee, is responsible for the distribution of money from the fund. Subsection (f) directs the executive director to develop criteria to ensure that employers and training resources work together to propose training and employment for a specific number of clients. Subsection (g) provides that funds may also be used for support services for participants to prepare for and participate in training and to make the transition from training to employment. Subsection (h) states that to the greatest extent practicable, money from the fund shall be spent in all areas of the state. Subsection (i) states the community-based organizations has the same meaning as 20 U.S.C. Section 1201a and its subsequent amendments. Community-based organizations may be faith-based. SECTION 2.Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 2928 amends Subtitle B, Title 4, Labor Code by adding a new Chapter 308, rather than a new Section 303.005. CSHB 2829 Sec. 308.001 subsection (a) adds language to create the fund subject to the availability of funds; establishes the purpose of the fund; adds state extension agencies to the list of entities that may participate in the program. Subsection (b) establishes that the job training programs must be designed to assist clients in finding a job. CSHB 2928 adds a new Subsection (c) and (d) and renumbers accordingly. Subsection (c) establishes that participants in a program funded by the self- sufficiency fund shall be considered to be meeting work requirements. Subsection (d) requires training programs to work with employers to ensure that graduate are placed in livable wage jobs that keep graduates off of public assistance. Subsection (e) requires the Texas Workforce Commission administer the fund and that a person knowledgeable in the administration of grants is responsible for disbursement from the fund. Subsection (f) directs the executive director to develop criteria to ensure that a specific number of clients are served. Subsection (g) allows the fund to be used for support services if necessary. Subsection (h) allows that money from the fund should be spent in all areas of the state. Subsection (i) defines "community-based organization" and clarifies that a faith- based organization may participate in the program.