JKM S.B. 1491 75(R)BILL ANALYSIS


ECONOMIC DEVELOPMENT
S.B. 1491
By: Ellis (Coleman)
5-20-97
Committee Report (Amended)



BACKGROUND 

 The federal Personal Responsibility Act of 1996 requires states to
provide 20 hours of work activities for 25 percent of their public
assistance recipients in fiscal year 1997. Work participation requirements
will increase 5 percent each year until 2002. In five years states must
have 50 percent of welfare recipients working at least 30 hours a
week--about 88,000 Texans by current enrollment figures. 
 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). 
 S.B. 1491 establishes the self-sufficiency fund for use by public
community colleges, technical colleges and community-based organizations
to develop job-training programs for certain recipients of public
assistance. In addition, this bill requires the programs to be
specifically designed to enable the recipients of public assistance to
find and apply for existing jobs. 

PURPOSE

As proposed, S.B. 1491 creates the self-sufficiency fund for use by public
community and technical colleges and community-based organizations as
start-up or emergency funds to develop customized job-training programs
for certain recipients of financial 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 Title 4B, Labor Code, by adding Chapter 308, as follows:

Sec. 308.001. SELF-SUFFICIENCY FUND. Provides that, subject to the
availability of funds, the self-sufficiency fund is created as an account
in the general revenue fund for use by public community and technical
colleges, community-based organizations, and state extension agencies for
certain purposes. Requires the job-training programs described by
Subsection (a)(1) to be specifically designed to enable the recipients to
find and apply for existing jobs, and will involve employers who
participate in setting curricula and standards and commit to hire
graduates of training programs. Requires the programs to be specifically
designed to enable the recipients to find and apply for existing jobs.
Requires training programs funded by the self-sufficiency fund to ensure
participants in the program meet  applicable state and federal work
requirements. Requires participants in a program funded by the
self-sufficiency fund to be considered to be meeting the work requirements
under Section 31.012, Human Resources Code. Sets forth additional
requirements regarding training programs funded by the self-sufficiency
fund. Requires the Texas Workforce Commission (commission) to administer
the self-sufficiency fund. Provides that the executive director of the
commission, or a person appointed by the executive director who is
knowledgeable in the administration of grants, is responsible for the
distribution of money from the fund. Requires the executive director to
develop criteria to ensure that employers and training resources work
together to propose training and employment for a specific number of
clients. Authorizes the funds to be used for support services as necessary
for participants to prepare for and participate in training activities and
to make the transition from training activities to employment. Requires,
to the greatest extent practicable, money from the self-sufficiency fund
to be spent in all areas of the state. Defines "communitybased"
organization." 

SECTION 2. Emergency clause. Effective date: upon passage.


EXPLANATION OF AMENDMENTS

AMENDMENT #1.  
 (1)  Amends SECTION 1, Section 308.001 (c), Labor Code, by striking
"Training brograms  funded by the self sufficiency fund" and substituting
"An entity that receives money from the  
 self-sufficiency fund for a training program".

 (2)Amends SECTION 1, in added Section 308.001, Labor Code, by striking
the existing  
 Subsection (d) and adding a new Subsection (d) that requires an entity
that receives money  
 from the self-sufficiency fund for a training program to work to place
graduates of the 
 program in employment with wages that are calculated to make the
graduates independent  
 of financial assistance and the food stamp program as defined by the
Human Resources Code. 

 (3)  Amends SECTION 1 of the bill, in added Section 308.001 (f), Labor
Code, by striking  "resources" and substituting "sources." 

 (4)  Adds the following appropriately numbered SECTIONS to the bill and
renumbers the  
 existing SECTIONS of the bill accordingly.  
 
 SECTION___.  Amends Section 302.062 (g), Labor Code, to state that block
grant funding  under this section does not apply to a program under the
self-sufficiency fund created under  Chapter  308.  Makes conforming
changes to the rest of the subchapter. 

 SECTION___.  Amends Section 303.003 (b) of the Labor Code by allowing
community and  
 technical colleges to use the skills development fund as start-up or
emergency funds for  
 providing training or internships for certain recipients of financial
assistance under Chapter 
 31, Human Resources Code. 

 SECTION___.  (a)Defines "allied health profession" and "community based
organization". 
 Subsection (b) requires the Texas Workforce Commission to use money from
the skills  development fund or from the self-sufficiency fund to
establish a pilot program to provide  
 training and internships in allied health professions to certain
recipients of financial  assistance under Chapter 31, Human Resources
Code.  Subsection (c) requires the  
  commission to award grants to implement the program to community-based
organizations  and public community and  technical colleges that have
formed certain partnerships.  Subsection (d) lays out requirements for a
report.  Subsection (e) states that this section  expires September 1,
1999.