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


Senate Research CenterH.B. 3116
By: Greenberg (Ellis)
Health & Human Services
5-17-97
Committee Report (Amended)


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 30 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 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."  Requires the Texas Workforce Commission to prepare and issue an
assessment of the impact of this section on the ability of recipients of
public assistance to obtain employment to certain persons by a set date.
Provides that this section expires September 1, 2003.    

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.

SUMMARY OF COMMITTEE CHANGES

Amendment 1.

Between Page 2, line 27 and page 3, line 1, inserts new Subsections (f)
and (g), to require the Texas Workforce Commission to prepare and issue to
certain persons an assessment of the impact of this section on the ability
of recipients of public assistance to obtain employment. Provides that
this section expires September 1, 2003.   

* It is the drafter's intent that the "commission" refer to the Texas
Workforce Commission.  

Amendment 2.

Page 1, line 15, strikes "90" and substitutes "30".

Page 1, lines 20-23, strikes Subdivision (2), which provides that a
participant in a work supplementation program is entitled to receive sick
leave, vacation, and paid holidays or other pay to the same extent as
other employees.