By Oliveira H.B. No. 1528
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the smart jobs fund program.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 481.151, Government Code, is amended to
1-5 read as follows:
1-6 Sec. 481.151. DEFINITIONS. In this subchapter:
1-7 (1) "Business development" includes relocation,
1-8 expansion, turnover, diversification, or technological change.
1-9 (2) "Demand occupation" means an occupation in which,
1-10 as a result of business development, there are or will be positive
1-11 growth-to-replacement ratios within the next 12 to 24 months,
1-12 according to the best available sources of state and local labor
1-13 market information.
1-14 (3) "Emerging occupation" means an occupation that
1-15 arises from forces related to technological changes in the
1-16 workplace and the work of which cannot be performed by workers
1-17 from other occupations without at least two months of customized
1-18 education or training.
1-19 (4) "Employee" means an individual who performs
1-20 services for another under a contract of hire, whether express or
1-21 implied, or oral or written.
1-22 (5) [(4)] "Employer" means a person that employs one
1-23 or more employees.
1-24 (6) [(5)] "Executive director" means the executive
2-1 director of the department.
2-2 (7) [(6)] "Existing employer" means an employer that:
2-3 (A) has been liable to pay contributions under
2-4 Subtitle A, Title 4, Labor Code ([the] Texas Unemployment
2-5 Compensation Act) [(Article 5221b-1 et seq., Vernon's Texas Civil
2-6 Statutes)] for more than one year;
2-7 (B) has employees; and
2-8 (C) is in compliance with the reporting and
2-9 payment requirements of that Act, as determined by the Texas
2-10 Workforce [Employment] Commission.
2-11 (8) [(7)] "Family wage job" means a job that offers:
2-12 (A) wages equal to or greater than the state
2-13 average weekly wage;
2-14 (B) benefits, such as vacation leave, sick
2-15 leave, and insurance coverage;
2-16 (C) reasonable opportunities for continued skill
2-17 development and career path advancement; and
2-18 (D) a substantial likelihood of long-term job
2-19 security.
2-20 (9) [(8)] "In-kind contribution" means a noncash
2-21 contribution of goods and services provided by an employer as all
2-22 or part of the employer's matching share of a grant or project.
2-23 (10) [(9)] "Job" means employment on a basis
2-24 customarily considered full-time for the applicable occupation and
2-25 industry.
2-26 (11) "Manufacturing occupation" means an occupation
2-27 that is involved in the mechanical or chemical transformation of
3-1 materials or substances into new products.
3-2 (12) "Micro-business" means an eligible business with
3-3 not more than 20 employees.
3-4 (13) [(10)] "Minority employer" means a business
3-5 entity at least 51 percent of which is owned by minority group
3-6 members or, in the case of a corporation, at least 51 percent of
3-7 the shares of which are owned by minority group members and that:
3-8 (A) is managed and, in daily operations, is
3-9 controlled by minority group members; and
3-10 (B) is a domestic business entity with a home or
3-11 branch office located in this state and is not a branch or
3-12 subsidiary of a foreign corporation or other foreign business
3-13 entity.
3-14 (14) [(11)] "Minority group members" include:
3-15 (A) African-Americans;
3-16 (B) American Indians;
3-17 (C) Asian-Americans; [and]
3-18 (D) Mexican-Americans and other Americans of
3-19 Hispanic origin; and
3-20 (E) women.
3-21 (15) [(12)] "Program" means the smart jobs fund
3-22 program created under this subchapter.
3-23 (16) [(13)] "Project" means a specific employment
3-24 training project developed and implemented under this subchapter.
3-25 (17) [(14)] "Provider" means a person that provides
3-26 employment-related training. The term includes employers, employer
3-27 associations, labor organizations, community-based organizations,
4-1 training consultants, public and private schools, technical
4-2 institutes, junior or community colleges, senior colleges,
4-3 universities, and proprietary schools, as defined by Section
4-4 132.001, Education Code.
4-5 (18) "Small business" has the meaning assigned that
4-6 term by Section 481.101.
4-7 (19) [(15)] "State average weekly wage" means the
4-8 annual average of the average weekly wage of manufacturing
4-9 production workers in this state as of September 1 of each year, as
4-10 determined by the Texas Workforce [Employment] Commission [under
4-11 Section 3(b), Texas Unemployment Compensation Act (Article 5221b-1,
4-12 Vernon's Texas Civil Statutes)], adjusted for regional variances.
4-13 (20) [(16)] "Targeted industry" means an industry that
4-14 promotes high-skill, high-wage jobs using Texas-available material
4-15 and human resources, as determined by the department.
4-16 (21) [(17)] "Trainee" means a participant in a project
4-17 funded under this subchapter.
4-18 (22) [(18)] "Wages" means all forms of compensation or
4-19 remuneration, excluding benefits, payable for a specific period to
4-20 an employee for personal services rendered by that employee.
4-21 SECTION 2. Section 481.154, Government Code, is amended to
4-22 read as follows:
4-23 Sec. 481.154. FUNDING. (a) The smart jobs fund is
4-24 established as a special trust fund in the custody of the state
4-25 treasurer separate and apart from all public money or funds of this
4-26 state. The fund is composed of:
4-27 (1) money transferred into the fund under Section
5-1 204.123, Labor Code [9e, Texas Unemployment Compensation Act
5-2 (Article 5221b-1 et seq., Vernon's Texas Civil Statutes)];
5-3 (2) gifts, grants, and other donations received by the
5-4 department for the fund; and
5-5 (3) any amounts appropriated by the legislature for
5-6 the program.
5-7 (b) The program is funded through the smart jobs fund.
5-8 (c) Money in the smart jobs fund may be used for program
5-9 administration, marketing expenses, and evaluation of the program.
5-10 These costs of the department in any fiscal year may not exceed
5-11 five percent of the total amount appropriated for the program for
5-12 [funds deposited in the smart jobs fund in] that year.
5-13 (d) If, during any three consecutive months, the balance in
5-14 the smart jobs fund exceeds 0.15 percent of the total taxable wages
5-15 for the four calendar quarters ending the preceding June 30, as
5-16 computed under Section 204.062(c), Labor Code [7(c)(8), Texas
5-17 Unemployment Compensation Act (Article 5221b-5, Vernon's Texas
5-18 Civil Statutes)], the executive director shall immediately transfer
5-19 the excess to the Unemployment Compensation Fund created under
5-20 Section 203.021, Labor Code [9(a), Texas Unemployment Compensation
5-21 Act (Article 5221b-7, Vernon's Texas Civil Statutes)].
5-22 SECTION 3. Section 481.155, Government Code, is amended to
5-23 read as follows:
5-24 Sec. 481.155. Grants. (a) The executive director may award
5-25 grants for projects that meet the requirements of this chapter. It
5-26 is the intent of the legislature that, to the greatest extent
5-27 practicable, money from the smart jobs fund shall be spent in all
6-1 areas of the state. The executive director may award a grant or a
6-2 combination of grants in any fiscal year to a single employer in
6-3 excess of $1,000,000 or at a rate greater than 10 percent of the
6-4 annual wages of the new or existing job being created or retained
6-5 with the grant only if:
6-6 (1) the employer locates or expands in an enterprise
6-7 zone;
6-8 (2) the employer locates or expands in an adversely
6-9 affected defense-dependent community;
6-10 (3) the employer locates or expands in an area having
6-11 an unemployment rate 1-1/2 times greater than the statewide average
6-12 at the time of the application;
6-13 (4) the employer locates or expands in a county with a
6-14 population of less than 75,000;
6-15 (5) at least 25 percent of the employees hired or
6-16 retained by the employer are economically disadvantaged individuals
6-17 as defined by Section 2303.402(c), Government Code; or
6-18 (6) the employer is a small business or a
6-19 micro-business.
6-20 (b) The executive director shall attempt to ensure that at
6-21 least 20 percent of the total dollar amount of grants awarded under
6-22 the program are awarded to minority employers.
6-23 (c) [(b)] The program is job-driven. A grant may not be
6-24 awarded unless each employer participating in the project certifies
6-25 that:
6-26 (1) a job or job opening exists or will exist at the
6-27 end of the project for which the grant is sought; and
7-1 (2) the job or job opening will be filled by a
7-2 participant in the project.
7-3 (d) [(c)] A grant may not be awarded for a project under
7-4 this section unless each employer participating in the project
7-5 certifies that the starting wage for a new job created through the
7-6 project will be equal to or greater than the prevailing wage for
7-7 that occupation in the local labor market area [greater than 66 2/3
7-8 percent of the state average weekly wage] and that the wage for a
7-9 job existing on the date that the project is scheduled to begin
7-10 will be increased to the greater of:
7-11 (1) three [10] percent for a small business or five
7-12 percent for a business that is not a small business over the wage
7-13 in effect on the day before the date on which the project is
7-14 scheduled to begin for that job; or
7-15 (2) 100 percent of the prevailing wage for that
7-16 occupation in the local labor market area [75 percent of the state
7-17 average weekly wage].
7-18 (e) [(d)] An employer may apply for a grant under this
7-19 chapter, and an employer who is a micro-business may request a
7-20 modification of the requirements provided by Subsection (d) and
7-21 Section 481.159(c), if:
7-22 (1) the employer is required to reduce or eliminate
7-23 the employer's work force because of reductions in overall
7-24 employment within an industry;
7-25 (2) [or] a substantial change in the skills required
7-26 to continue the employer's business exists because of technological
7-27 changes; or
8-1 (3) other reasonable factors, as determined by [. In
8-2 awarding a grant under this subsection,] the executive director,
8-3 exist [may modify the requirements of Subsection (c)].
8-4 (f) Grants awarded under this section [subsection] for which
8-5 the executive director has modified the requirements of Subsection
8-6 (d) [(c)] may not, in any fiscal year, exceed 10 percent of the
8-7 total dollar amount of grants awarded under the program in that
8-8 year.
8-9 (g) [(e)] Unless modified by the executive director under
8-10 rules adopted by the policy board, a grant may not be awarded for a
8-11 project unless each employer participating in the project certifies
8-12 that it will continue to spend on nonmanagerial training an amount
8-13 from private sources equal to the average amount spent by that
8-14 employer on such training for the most recent two-year period.
8-15 (h) [(f)] A grant may not be awarded for a project if the
8-16 project will impair existing contracts for services or collective
8-17 bargaining agreements, except that a project inconsistent with the
8-18 terms of a collective bargaining agreement may be undertaken with
8-19 the written concurrence of the collective bargaining unit and the
8-20 employer or employers who are parties to the agreement.
8-21 (i) [(g)] During each state fiscal year the executive
8-22 director shall attempt to ensure that at least 50 percent of the
8-23 total dollar amount of grants awarded under this section is awarded
8-24 to small businesses, as defined by Section 481.101.
8-25 (j) [(h)] In awarding a grant under this section, the
8-26 executive director shall give priority to a project that is located
8-27 in an enterprise zone as defined by Section 2303.003.
9-1 SECTION 4. Section 481.156(a), Government Code, is amended
9-2 to read as follows:
9-3 (a) The following may apply for a grant under this
9-4 subchapter:
9-5 (1) one or more employers to secure training for
9-6 demand occupations, emerging occupations, or manufacturing
9-7 occupations [in a particular industry];
9-8 (2) one or more employers acting in partnership with
9-9 an employer organization, labor organization, or community-based
9-10 organization to secure training for demand occupations, emerging
9-11 occupations, or manufacturing occupations [in a particular
9-12 industry]; or
9-13 (3) one or more employers acting in partnership with a
9-14 consortium composed of [one or] more than one provider [providers]
9-15 to secure training for demand occupations, emerging occupations, or
9-16 manufacturing occupations [in a particular industry].
9-17 SECTION 5. Section 481.159(c), Government Code, is amended
9-18 to read as follows:
9-19 (c) Each contract must provide a schedule for payment of
9-20 smart jobs fund money. Twenty-five percent of allowable
9-21 expenditures [the grant award] shall be withheld by the department
9-22 for 90 days after the date of completion of the contract
9-23 [project]. If at least 85 percent [all] of the trainees in the
9-24 project have been retained in employment for that 90-day period
9-25 and have successfully achieved the skills and competencies, wage
9-26 requirements, and other contractual obligations, the amount of
9-27 allowable expenditures [the grant award] withheld shall be remitted
10-1 to the employer. [For each trainee who is not retained in
10-2 employment for that 90-day period, the amount withheld shall be
10-3 reduced by the amount of the training costs for that trainee that
10-4 is derived from grant money, and any balance shall be remitted to
10-5 the employer.] If there is a negative balance, the employer is
10-6 liable for the amount of the negative balance and shall remit that
10-7 amount to the department not later than the 30th day after the date
10-8 on which the employer is notified of the negative balance by the
10-9 department.
10-10 SECTION 6. Section 481.160(b), Government Code, is amended
10-11 to read as follows:
10-12 (b) The annual report must include for that fiscal year:
10-13 (1) the number of employers receiving grants under the
10-14 program;
10-15 (2) the total amount of grants awarded;
10-16 (3) the value, expressed in dollars and as a
10-17 percentage of total training expenditures, of matching
10-18 contributions made by employers;
10-19 (4) the number of small businesses, as defined by
10-20 Section 481.101(3), that receive grants under the program and the
10-21 total amount of the grants awarded to those businesses;
10-22 (5) the number of businesses located in enterprise
10-23 zones, as that term is defined by Chapter 2303, that receive grants
10-24 under the program and the total amount of the grants awarded to
10-25 those businesses;
10-26 (6) the geographical distribution of employers
10-27 receiving grants under the program;
11-1 (7) the total number of jobs created, enhanced, or
11-2 retained under the program, reported by region of the state and by
11-3 occupation;
11-4 (8) the wage levels of trainees entering or returning
11-5 to the work force, broken down by current employees undergoing
11-6 retraining and new hires, at three months and[,] one year[, and
11-7 three years] after the conclusion of their training;
11-8 (9) the number and percentage of participating
11-9 employers that provide workers' compensation insurance coverage and
11-10 the number and percentage of employees covered;
11-11 (10) the number and percentage of participating
11-12 employers that offer health care insurance coverage and the number
11-13 and percentage of employees covered;
11-14 (11) the number and percentage of women employers and
11-15 minority employers receiving grants under the program and the total
11-16 amount of the grants awarded, broken out by group;
11-17 (12) the number and percentage of women, minority
11-18 group members, and disabled individuals participating as trainees
11-19 in training projects, broken out by group; and
11-20 (13) the number and percentage of women private
11-21 providers and private providers who are minority group members
11-22 utilized by employers in training projects, broken out by group.
11-23 SECTION 7. This Act takes effect September 1, 1997.
11-24 SECTION 8. The importance of this legislation and the
11-25 crowded condition of the calendars in both houses create an
11-26 emergency and an imperative public necessity that the
11-27 constitutional rule requiring bills to be read on three several
12-1 days in each house be suspended, and this rule is hereby suspended.