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.