JKM C.S.S.B. 781 75(R)BILL ANALYSIS


ECONOMIC DEVELOPMENT
C.S.S.B. 781
By: Ellis (Raymond)
5-8-97
Committee Report (Substituted)



BACKGROUND 

Currently, the federal Personal Responsibility and Reconciliation Act of
1996 requires states to provide 20 hours of work activities for 25 percent
of their public assistance recipients in fiscal year 1997. In five years
states must have 50 percent of welfare recipients working at least 30
hours a week. This bill creates a Texans Work on-the-job training program
(program) for recipients of public assistance, establishes the Texas
Employment and Training Account to pool business donations to the program,
and directs the Texas Workforce Commission and the Skill Standards Board
to work with participating businesses to develop skills standards for
their training programs. 

PURPOSE
As proposed, C.S.S.B. 781 creates a Texans Work on-the-job training
program (program) for recipients of public assistance, establishes the
Texas Employment and Training Account to pool business donations to the
program, and directs the Texas Workforce Commission and the Skill
Standards Board to work with participating businesses to develop skills
standards for their training programs. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Workforce Commission in
SECTION 1 (Section 308.005, Labor Code), SECTION 3 (Section 31.0321, Human
Resources Code), SECTION 4 (Section 33.012 Human Resources Code), and
SECTION 5 (Section 301.067, Labor Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 4B, Labor Code, by adding Chapter 308, as follows:
CHAPTER 308. TEXANS WORK PROGRAM
Sec. 308.001. LEGISLATIVE INTENT. Sets forth the intent of the legislature.
Sec. 308.002. DEFINITIONS. Defines "division," "employer," "JOBS training
program," "local workforce development board," "program," "trainee," and
"training course." 
Sec. 308.003. TEXANS WORK PROGRAM. Provides for the eligibility of the
Texans Work Program (program). Requires the program to be considered a
means-tested program and operated through courses conducted by
participating employers and to offer direct work experience and skills
training. Requires the program to be offered in certain areas. 
Se. 308.004. TRAINING COURSES; APPROVAL. Sets forth requirements and
procedures for each training course. 
Sec. 308.005. POWERS AND DUTIES OF COMMISSION: DIVISION; GUIDELINES FOR
TRAINING COURSE APPROVAL. Requires the Texas Workforce Commission
(commission) to adopt certain rules to implement the program and develop
guidelines for the approval of employer  training courses. Sets forth
guidelines for training course approval. 
Sec. 308.006. POWERS AND DUTIES OF TEXAS DEPARTMENT OF HUMAN SERVICES.
Requires the Texas Department of Human Services to provide certain
information to the commission and the local workforce development board. 
Sec. 308.007. RIGHTS AND DUTIES OF PARTICIPATING EMPLOYER. Sets forth
rights and duties of the employer. Provides that a trainee is considered
an employee of the employer for purposes of Section 401.012. 
Sec. 308.008. RIGHTS OF REGULAR EMPLOYEES. Prohibits not more than 20
percent of an employer's workforce from consisting of trainees under the
program, except as provided by Subsection (b). Provides that Subsection
(a) does not apply to an employer who has fewer than 50 employees. Sets
forth rights of regular employees. 
Sec. 308.009. RIGHTS AND DUTIES OF PARTICIPATING TRAINEES. Sets forth
rights and duties of the trainee. 
Sec. 308.010. ACCOUNT. Sets forth the creation, composition and use of the
Texas employment training account. 
Sec. 308.011. TRAINING STIPEND. Sets forth requirements and procedures for
a training stipend for trainees. 
Sec. 308.012. REPORT; RECORDS. Requires the commission to collect certain
information, which is a public record. Requires the commission to report
to the 76th Legislature no later than January 31, 1999, regarding the
information collected under Subsection (a). Provides that this subsection
expires March 1, 1999. 
SECTION 2. Amends Chapter 31A, Human Resources Code, by adding Section
31.0037, as follows: 
Sec. 31.0037. EARNED INCOME FROM WORK PROGRAM. Prohibits the Texas
Department of Human Services from considering any income earned by a
recipient of financial assistance under the Texans Work program
established under Chapter 308, Labor Code, for certain purposes. 
SECTION 3. Amends Subchapter B, Chapter 31, Human Resources Code, by
adding Section 31.0321 to read as follows: 

Sec. 31.0321. EXCLUSION OF CERTAIN INCOME AND RESOURCES. Except as
provided by Subsection (b), the Department of Human Services (department)
is prohibited from considering money contributed to a recipients
individual development account under a pilot program by an employer,
community group, or financial institution as income or the balance of the
account as a resource in determining eligibility for financial assistance.
Allows the department, after consulting with the commission, to place
limits by rule on the amount of money not considered as income or as a
resource under Subsection (a). Establishes September 1, 2001 as expiration
date for this section. 

SECTION 4. Amends Chapter 33, Human Resources Code, by adding Section
33.012 as follows: 

Sec. 33.012. EXCLUSION OF CERTAIN INCOME AND RESOURCES. Except as provided
by Subsection (b), the department may not consider money contributed to a
recipient's individual development account under a pilot program by an
employer, community group, or financial institution as income or the
balance of the account as a resource in determining whether the recipient
meets household income and resource requirements for eligibility for food
stamps. Allows the department, after consulting with the commission, to
place limits by rule on the amount of money not considered as income or as
a resource under Subsection (a). Establishes September 1, 2001 as
expiration date for this section. 

SECTION 5. Amends Subchapter D, Chapter 301, Labor Code, by adding Section
301.067 as follows: 

Sec. 301.067. PILOT PROGRAM: INDIVIDUAL DEVELOPMENT ACCOUNTS FOR CERTAIN
EMPLOYEES. Requires the commission to establish and implement by rule a
pilot program under which an individual development account is established
for a recipient of financial assistance under Chapter 31, Human REsources
Code, who is employed by a person in the private section through a
subsidized employment program established under Section 31.0126(a)(5),
Human Resources Code. Authorizes the commission to establish and
administer an account for a recipient under this section or to contract
with a nonprofit organization of financial institution to establish and
administer the account in accordance with commission rules. Requires the
commission to encourage private employers, community groups, and financial
institutions to match deposits made by a recipient. Limits  expenditures
from Individual Development Accounts established under this section  to
medical expenses, work-related expenses, including expenses of a
self-employment enterprise, and housing or moving expenses for the
recipient and a person who is a member of the AFDC-certified group.
REquires the commission to submits a report to the governor and members of
the Legislature by December 1, 1998 and 2000 regarding the status of the
pilot program. 

SECTION 6. Amends Subsection (b), Section 401.012, Labor Code,  to include
under the definition of "employee" "(3) a person who is a trainee under
the Texans Work program established under Chapter 308." 

SECTION 7.  Requires a state agency to request a waiver or authorization,
if necessary,and may delay implementing a provision until a waiver or
authorization is granted. 

SECTION 8. Makes application of this Act prospective.

SECTION 9. Establishes effective date of this Act as September 1, 1997.

SECTION 10. Emergency clause.



COMPARISON OF ORIGINAL TO SUBSTITUTE
SB 781 SECTION 3 is renumbered as SECTION 6 in CSSB 781.

CSSB 781 adds a new SECTION 3.  Amends Subchapter B, Chapter 31, Human
Resources Code, by adding Section 31.0321 to read as follows: 

Sec. 31.0321. EXCLUSION OF CERTAIN INCOME AND RESOURCES. Except as
provided by Subsection (b), the Department of Human Services (department)
is prohibited from considering money contributed to a recipients
individual development account under a pilot program by an employer,
community group, or financial institution as income or the balance of the
account as a resource in determining eligibility for financial assistance.
Allows the department, after consulting with the commission, to place
limits by rule on the amount of money not considered as income or as a
resource under Subsection (a). Establishes September 1, 2001 as expiration
date for this section. 

CSSB 781 adds a new SECTION 4. Amends Chapter 33, Human Resources Code, by
adding Section 33.012 as follows: 

Sec. 33.012. EXCLUSION OF CERTAIN INCOME AND RESOURCES. Except as provided
by Subsection (b), the department may not consider money contributed to a
recipient's individual development account under a pilot program by an
employer, community group, or financial institution as income or the
balance of the account as a resource in determining whether the recipient
meets household income and resource requirements for eligibility for food
stamps. Allows the  department, after consulting with the commission, to
place limits by rule on the amount of money not considered as income or as
a resource under Subsection (a). Establishes September 1, 2001 as
expiration date for this section. 

CSSB 781 adds a new SECTION 5.  Amends Subchapter D, Chapter 301, Labor
Code, by adding Section 301.067 as follows: 

Sec. 301.067. PILOT PROGRAM: INDIVIDUAL DEVELOPMENT ACCOUNTS FOR CERTAIN
EMPLOYEES. Requires the commission to establish and implement by rule a
pilot program under which an individual development account is established
for a recipient of financial assistance under Chapter 31, Human REsources
Code, who is employed by a person in the private section through a
subsidized employment program established under Section 31.0126(a)(5),
Human Resources Code. Authorizes the commission to establish and
administer an account for a recipient under this section or to contract
with a nonprofit organization of financial institution to establish and
administer the account in accordance with commission rules. Requires the
commission to encourage private employers, community groups, and financial
institutions to match deposits made by a recipient. Limits  expenditures
from Individual Development Accounts established under this section  to
medical expenses, work-related expenses, including expenses of a
self-employment enterprise, and housing or moving expenses for the
recipient and a person who is a member of the AFDC-certified group.
REquires the commission to submits a report to the governor and members of
the Legislature by December 1, 1998 and 2000 regarding the status of the
pilot program. 

SB 781 SECTION 3 is renumbered as CSSB 781 SECTION 6.

SB 781 SECTION 4 is renumbered as CSSB 781 SECTION 7.

SB 781 SECTION 5 is renumbered as CSSB SECTION 8.

SB 781 SECTION 6 is renumbered as CSSB SECTION 9.

SB 781 SECTION 7 is renumbered as SECTION 10.