JKM S.B. 1262 75(R)BILL ANALYSIS ECONOMIC DEVELOPMENT S.B. 1262 By: Ellis (Naishtat) 5-13-97 Committee Report (Amended) 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. However, by 2002, states must have 50 percent of welfare recipients working at least 30 hours a week. The federal welfare law defines eligible work activities as unsubsidized employment, subsidized private or public employment, work experience, on-the-job training, job search and job readiness activities, community service programs, vocational education programs, job skills training, and satisfactory attendance of secondary school for recipients who have not completed high school. This legislation authorizes the division of workforce development of the Texas Workforce Commission to provide ongoing job retention and reemployment assistance for certain recipients of public assistance, in an effort to improve the long-term success of participants in job-training programs. S.B. 1262 also requires the Texas Department of Human Services, in providing work skills and job readiness training, to emphasize training for sustainable wage jobs, encourage nontraditional work opportunities for recipients, and offer micro-enterprise development and selfemployment assistance in areas in which jobs are scarce. PURPOSE As proposed, S.B. 1262 provides for employment and training for certain persons on public assistance. 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 Chapter 302A, Labor Code, by adding Section 302.003, as follows: Sec. 302.003. JOB RETENTION AND REEMPLOYMENT ASSISTANCE. Authorizes the division of workforce development of the Texas Workforce Commission (division) to provide ongoing job retention and reemployment assistance for a recipient of public assistance who has participated in a job training program. SECTION 2. Amends Subchapter A, Chapter 302, Labor Code, by adding Section 302.004. Allows the Commission, in providing job training and employment services and child care to eligible persons, to establish a need-based formula to allocate funds to local workforce development areas in order to ensure compliance with federal participation rates and requirements. SECTION 3.Amends Section 31.010, Human Resources Code, by amending Subsection (c), and adding Subsection (f), to include job retention assistance among support services. Requires the Texas Department of Human Services, in providing work skills and job readiness training, to emphasize training for sustainable wage jobs; promote understanding of nontraditional work opportunities for recipients; and offer microenterprise development and self-employment assistance in rural areas and other areas in which jobs are scarce. Makes conforming changes. SECTION 3.Effective date: September 1, 1997. SECTION 4.Emergency clause. EXPLANATION OF AMENDMENTS AMENDMENT 1. Amends Subchapter A, Chapter 302, Labor Code, by adding Section 302.004. Allows the Commission, in providing job training and employment services and child care to eligible persons, to establish a need-based formula to allocate funds to local workforce development areas in order to ensure compliance with federal participation rates and requirements.