SRC-CDH H.B. 3116 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3116
By: Greenberg (Ellis)
Health & Human Services
5-5-97
Engrossed


DIGEST 

Welfare reform legislation passed on both the state and federal level has
created intense financial and political pressure to move welfare
recipients into the workforce.  One approach that is available to
facilitate this process is subsidized employment.  In a subsidized
employment situation, the government, in an attempt to attract private
sector participation, confers a benefit on an employer for the hiring
and/or training of an individual currently receiving cash assistance
benefits.  This benefit can take the form of a direct wage subsidy, a tax
credit, or a requirement that the participant work for the employer in
exchange for the benefits that the participant receives.  H.B. 3116 aims
to ensure that any public money expended in a subsidized employment
situation truly benefits the community, rather than becoming a way for
employers to attain cheaper labor costs.  This legislation protects
low-wage workers from displacement by subsidized employment programs and
protects participants in these programs from violations of state and
federal labor laws. 

PURPOSE

As proposed, H.B. 3116 establishes provisions regarding work
supplementation programs for certain welfare recipients.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2308G, Government Code, by adding Section
2308.314, as follows: 

Sec. 2308.314.  PARTICIPATION IN WORK SUPPLEMENTATION PROGRAMS;
DISPLACEMENT OF EMPLOYEES PROHIBITED.  Prohibits an employer from hiring a
welfare recipient under a work supplementation program if the hiring will
result in the displacement of an employee from an existing position, will
result in the elimination of a vacant position created by the layoff of an
employee in the preceding 90 days, or is the result of a strike.  Provides
that a participant in a work supplementation program is considered an
employee; is entitled to receive sick leave, vacation, and paid holidays
or other pay; is entitled to receive compensation; and is entitled to the
same rights as the employer's other employees under any applicable
grievance procedures.  Prohibits an employer participating in a work
supplementation program from requiring as a condition of employment that
an employee join or refrain from joining a labor organization.  Provides
that this section does not create or authorize a cause of action against
an employer.  Defines "participant," "welfare recipient," and "work
supplementation program."   

SECTION 2. Sets forth the terms by which a state agency is required to
request a waiver or authorization from a federal agency and may delay
implementing certain provisions until the waiver or authorization is
granted.   

SECTION 3. Provides that this Act does not apply to certain work
supplementation programs or certain volunteer work experience programs. 

SECTION 4. Effective date:  September 1, 1997.
 
SECTION 5. Emergency clause.