SRC-HRD C.S.S.B. 1491 75(R)BILL ANALYSIS Senate Research CenterC.S.S.B. 1491 By: Ellis Finance 4-21-97 Committee Report (Substituted) DIGEST 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). C.S.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, C.S.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 This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. 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 adminstration 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. SUMMARY OF COMMITTEE CHANGES SECTION 1. Amends proposed Section 308.001, Labor Code, to provide that the self-sufficiency fund is created as an account in the general revenue fund, and that it is available for use by state extension agencies. Sets forth additional purposes for the self-sufficiency fund. Amendment 1. Page 1, line 23, insert "and will involve employers who participate in setting curricula and standards and commit to hire graduates of training programs" after "jobs" and before "." Amendment 2. Page 1, line 24, through page 2, line 18, strike all to insert new Subsections (c)-(j).