JKM C.S.H.B. 3116 75(R)BILL ANALYSIS


ECONOMIC DEVELOPMENT
C.S.H.B. 3116
By: Greenberg
4-2-97
Committee Report (Substituted)



BACKGROUND 
 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 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 they receive.   
 This bill aims to ensure that any public money expended in a subsidized
employment situation truly benefits the community and doesn't merely
become a way for employers to attain cheaper labor costs.  Individuals who
are currently working in very low-wage, unskilled occupations are placed
in some risk by subsidized employment programs. These individuals would
then simply take the place on welfare previously occupied by the
participants who would now be working.  

PURPOSE
 The purpose of  this bill is to protect low-wage workers from
displacement by subsidized employment programs, protect participants in
these programs from violations of state and federal labor laws 
.
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 Subchapter G, Chapter 2308, Government Code, by adding
Section 2308.314 to prohibit the displacement of employees by workers
participating in a wage supplementation program.  Subsection (a) prohibits
an employer from hiring a welfare recipient under a wage supplementation
program if the hiring will: result in the displacement or partial
displacement of an employee from an existing position, the elimination of
a vacant position caused by a lay off within the last 90 days, or impair a
collective bargaining agreement. 
  
  Subsection (b) requires a public employer who intends to fill a position
with a   participant to notify an organization that represents employees
who are engaged in   similar work or training as the work or training
involved in the position to be   filled of the employer's intent.  The
employer must notify the organization   before the date on which the
position is filled. 

  Subsection (c) states that the work supplement program participant is an
employee   of the participating employer for purposes under state and
federal law, is entitled to   sick leave, vacation, and paid holidays or
other pay as other employees who perform   the same type of work, is
entitled to pay at a rate that is not less than the rate the   employer
pays other employees with similar background, training, or experience who
perform the same type of work, and is entitled to the same rights as the
employer's   other employees under any applicable grievance procedures. 

Subsection (d) defines "participant," "welfare recipient," and "work
supplementation program." 

SECTION 2.   If a state agency determines that a waiver or authorization
from a federal agency is   necessary for implementation of any provision
of this Act, the state agency shall   request the waiver or authorization
and may delay implementing that provision until   the waiver or
authorization is granted. 

SECTION 3.   States that this Act does not apply to a work supplementation
program (as defined by   Section 2308.314 (d) (3) (A) or (C), Government
Code) created by HB 1639, S.B.   781, or other similar legislation created
by the 75th Legislature that becomes law and   contains provisions
prohibiting the displacement from existing positions of employees   of an
employer who is or will be participating in the program. 

SECTION 4.Effective date.

SECTION 5. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1.    CSHB 3116 added Subsection (b) which requires employers to
notify, before the date   on which an employer intends to fill a position,
an organization that represents   employees who are engaged in similar
work or training as the work or training   involved in the position to be
filled of the employer's intent.  Renumbers subsequent   subsections in
the bill. 

  Subsection (b) of H.B. 3116 becomes Subsection (c) in CSHB 3116, and
adds the   right of a participant in a work supplementation program to be
entitled to the same   rights as the employer's other employees under any
applicable grievance procedures. 

  Subsection (c) of 3116 becomes Subsection (d) in CSHB 3116, and
additions are   made to the definition of "work supplementation program." 

SECTION 2    in HB 3116 contained the effective date; in CSHB 3116 SECTION
2 is added and   requires any state agency  that determines a waiver or
authorization from a federal   agency is necessary for implementation of
any provision of the Act to request the   waiver  or authorization and may
delay implementation of the program until the   waiver or  authorization
is granted.  Renumbers subsequent sections. 

SECTION 3.   In HB 3116, SECTION 3 was the emergency clause; in CSHB 3116
SECTION 3   is added and designates to which bills this Act does not
apply. 

SECTION 4.   In CSHB 3116, SECTION 4 is the effective date.

 SECTION 5.  In CSHB 3116, SECTION 5 is the emergency clause.