SRC-CDH S.B. 1494 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1494
By: Ellis
Health & Human Services
4-1-97
As Filed


DIGEST 

Currently, welfare reform legislation passed on both the state and federal
level has created pressure to move welfare recipients into the workforce.
One approach that is available to facilitate this process is subsidized
employment, whereby the government, in an attempt to attract private
sector participation, confers a benefit on an employer for the hiring
and/or training of an individual currently receiving cash assistance
benefits.  Subsidized employment can take the form of a direct wage
subsidy, a tax credit, or a requirement that the participant work for the
employer in exchange for benefits that the participant receives.  This
legislation aims to ensure that any public money expended in a subsidized
employment situation truly benefits the employers, recipients, and
communities they seek to serve, rather than providing a way for employers
to attain cheaper labor in low-wage, unskilled occupations.  

PURPOSE

As proposed, S.B. 1494 establishes provisions regarding work
supplementation programs for certain welfare recipients. 

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 Chapter 2308G, Government Code, by adding Section
2308.314, as follows: 

Sec. 2308.314.  PARTICIPATION IN WAGE SUPPLEMENTATION PROGRAMS;
DISPLACEMENT OF EMPLOYEES PROHIBITED.  Prohibits an employer from hiring a
welfare recipient under a wage supplementation program if the hiring will
impair an existing collective bargaining agreement; or will result in the
displacement or partial displacement of an employee from an existing
position, the elimination of a vacant position created by the layoff of an
employee in the previous 90 days, the elimination of a position that would
otherwise be a promotion for an existing employee, or a hiring freeze.
Provides that a participant in the work supplementation program is
considered an employee; entitled to sick leave, vacation, and paid
holidays, or other pay; and entitled to receive compensation at a certain
rate.  Defines "participant," "welfare recipient," and "work
supplementation program."  

SECTION 2. Effective date:  September 1, 1997.

SECTION 3. Emergency clause.