By Oliveira H.B. No. 1528
75R5351 LJR-D
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) [(10)] "Minority employer" means a business
3-3 entity at least 51 percent of which is owned by minority group
3-4 members or, in the case of a corporation, at least 51 percent of
3-5 the shares of which are owned by minority group members and that:
3-6 (A) is managed and, in daily operations, is
3-7 controlled by minority group members; and
3-8 (B) is a domestic business entity with a home or
3-9 branch office located in this state and is not a branch or
3-10 subsidiary of a foreign corporation or other foreign business
3-11 entity.
3-12 (13) [(11)] "Minority group members" means members of
3-13 certain groups, including black Americans, Hispanic Americans,
3-14 women, Asian Pacific Americans, and American Indians, who have
3-15 suffered the effects of discriminatory practices or similar
3-16 insidious circumstances over which they have no control [include:]
3-17 [(A) African-Americans;]
3-18 [(B) American Indians;]
3-19 [(C) Asian-Americans; and]
3-20 [(D) Mexican-Americans and other Americans of
3-21 Hispanic origin].
3-22 (14) [(12)] "Program" means the smart jobs fund
3-23 program created under this subchapter.
3-24 (15) [(13)] "Project" means a specific employment
3-25 training project developed and implemented under this subchapter.
3-26 (16) [(14)] "Provider" means a person that provides
3-27 employment-related training. The term includes employers, employer
4-1 associations, labor organizations, community-based organizations,
4-2 training consultants, public and private schools, technical
4-3 institutes, junior or community colleges, senior colleges,
4-4 universities, and proprietary schools, as defined by Section
4-5 132.001, Education Code.
4-6 (17) "Small business" has the meaning assigned that
4-7 term by Section 481.101.
4-8 (18) [(15)] "State average weekly wage" means the
4-9 annual average of the average weekly wage of manufacturing
4-10 production workers in this state as of September 1 of each year, as
4-11 determined by the Texas Workforce [Employment] Commission [under
4-12 Section 3(b), Texas Unemployment Compensation Act (Article 5221b-1,
4-13 Vernon's Texas Civil Statutes)], adjusted for regional variances.
4-14 (19) [(16)] "Targeted industry" means an industry that
4-15 promotes high-skill, high-wage jobs using Texas-available material
4-16 and human resources, as determined by the department.
4-17 (20) [(17)] "Trainee" means a participant in a project
4-18 funded under this subchapter.
4-19 (21) [(18)] "Wages" means all forms of compensation or
4-20 remuneration, excluding benefits, payable for a specific period to
4-21 an employee for personal services rendered by that employee.
4-22 SECTION 2. Section 481.154, Government Code, is amended to
4-23 read as follows:
4-24 Sec. 481.154. FUNDING. (a) The smart jobs fund is
4-25 established as a special trust fund in the custody of the state
4-26 treasurer separate and apart from all public money or funds of this
4-27 state. The fund is composed of:
5-1 (1) money transferred into the fund under Section
5-2 204.123, Labor Code [9e, Texas Unemployment Compensation Act
5-3 (Article 5221b-1 et seq., Vernon's Texas Civil Statutes)];
5-4 (2) gifts, grants, and other donations received by the
5-5 department for the fund; and
5-6 (3) any amounts appropriated by the legislature for
5-7 the program.
5-8 (b) The program is funded through the smart jobs fund.
5-9 (c) Money in the smart jobs fund may be used for program
5-10 administration, marketing expenses, and evaluation of the program.
5-11 These costs of the department in any fiscal year may not exceed
5-12 five percent of the total amount appropriated for the program for
5-13 [funds deposited in the smart jobs fund in] that year.
5-14 (d) If, during any three consecutive months, the balance in
5-15 the smart jobs fund exceeds 0.15 percent of the total taxable wages
5-16 for the four calendar quarters ending the preceding June 30, as
5-17 computed under Section 204.062(c), Labor Code [7(c)(8), Texas
5-18 Unemployment Compensation Act (Article 5221b-5, Vernon's Texas
5-19 Civil Statutes)], the executive director shall immediately transfer
5-20 the excess to the Unemployment Compensation Fund created under
5-21 Section 203.021, Labor Code [9(a), Texas Unemployment Compensation
5-22 Act (Article 5221b-7, Vernon's Texas Civil Statutes)].
5-23 SECTION 3. Section 481.155, Government Code, is amended to
5-24 read as follows:
5-25 Sec. 481.155. GRANTS. (a) The executive director may award
5-26 grants for projects that meet the requirements of this chapter.
5-27 The executive director shall attempt to ensure that at least 20
6-1 percent of the total dollar amount of grants awarded under the
6-2 program are awarded to minority employers.
6-3 (b) The program is job-driven. A grant may not be awarded
6-4 unless each employer participating in the project certifies that:
6-5 (1) a job or job opening exists or will exist at the
6-6 end of the project for which the grant is sought; and
6-7 (2) the job or job opening will be filled by a
6-8 participant in the project.
6-9 (c) A grant may not be awarded for a project under this
6-10 section unless each employer participating in the project certifies
6-11 that the starting wage for a new job created through the project
6-12 will be greater than 66 2/3 percent of the state average weekly
6-13 wage and that the wage for a job existing on the date that the
6-14 project is scheduled to begin will be increased to the greater of:
6-15 (1) three [10] percent for a small business or five
6-16 percent for a business that is not a small business over the wage
6-17 in effect on the day before the date on which the project is
6-18 scheduled to begin for that job; or
6-19 (2) 75 percent of the state average weekly wage.
6-20 (d) An employer may apply for a grant under this chapter,
6-21 and request a modification of the requirements provided by
6-22 Subsection (c), if:
6-23 (1) the employer is required to reduce or eliminate
6-24 the employer's work force because of reductions in overall
6-25 employment within an industry;
6-26 (2) [or] a substantial change in the skills required
6-27 to continue the employer's business exists because of technological
7-1 changes; or
7-2 (3) other reasonable factors, as determined by[. In
7-3 awarding a grant under this subsection,] the executive director,
7-4 exist [may modify the requirements of Subsection (c)].
7-5 (e) Grants awarded under this section [subsection] for which
7-6 the executive director has modified the requirements of Subsection
7-7 (c) may not, in any fiscal year, exceed 10 percent of the total
7-8 dollar amount of grants awarded under the program in that year.
7-9 (f) [(e)] Unless modified by the executive director under
7-10 rules adopted by the policy board, a grant may not be awarded for a
7-11 project unless each employer participating in the project certifies
7-12 that it will continue to spend on nonmanagerial training an amount
7-13 from private sources equal to the average amount spent by that
7-14 employer on such training for the most recent two-year period.
7-15 (g) [(f)] A grant may not be awarded for a project if the
7-16 project will impair existing contracts for services or collective
7-17 bargaining agreements, except that a project inconsistent with the
7-18 terms of a collective bargaining agreement may be undertaken with
7-19 the written concurrence of the collective bargaining unit and the
7-20 employer or employers who are parties to the agreement.
7-21 (h) [(g)] During each state fiscal year the executive
7-22 director shall attempt to ensure that at least 50 percent of the
7-23 total dollar amount of grants awarded under this section is awarded
7-24 to small businesses, as defined by Section 481.101.
7-25 (i) [(h)] In awarding a grant under this section, the
7-26 executive director shall give priority to a project that is located
7-27 in an enterprise zone as defined by Section 2303.003.
8-1 SECTION 4. Section 481.156(a), Government Code, is amended
8-2 to read as follows:
8-3 (a) The following may apply for a grant under this
8-4 subchapter:
8-5 (1) one or more employers to secure training for
8-6 demand occupations, emerging occupations, or manufacturing
8-7 occupations [in a particular industry];
8-8 (2) one or more employers acting in partnership with
8-9 an employer organization, labor organization, or community-based
8-10 organization to secure training for demand occupations, emerging
8-11 occupations, or manufacturing occupations [in a particular
8-12 industry]; or
8-13 (3) one or more employers acting in partnership with a
8-14 consortium composed of [one or] more than one provider [providers]
8-15 to secure training for demand occupations, emerging occupations, or
8-16 manufacturing occupations [in a particular industry].
8-17 SECTION 5. Section 481.159(c), Government Code, is amended
8-18 to read as follows:
8-19 (c) Each contract must provide a schedule for payment of
8-20 smart jobs fund money. Twenty-five percent of allowable
8-21 expenditures [the grant award] shall be withheld by the department
8-22 for 90 days after the date of completion of the contract
8-23 [project]. If at least 85 percent [all] of the trainees in the
8-24 project have been retained in employment for that 90-day period
8-25 and have successfully achieved the skills and competencies, wage
8-26 requirements, and other contractual obligations, the amount of
8-27 allowable expenditures [the grant award] withheld shall be remitted
9-1 to the employer. [For each trainee who is not retained in
9-2 employment for that 90-day period, the amount withheld shall be
9-3 reduced by the amount of the training costs for that trainee that
9-4 is derived from grant money, and any balance shall be remitted to
9-5 the employer.] If there is a negative balance, the employer is
9-6 liable for the amount of the negative balance and shall remit that
9-7 amount to the department not later than the 30th day after the date
9-8 on which the employer is notified of the negative balance by the
9-9 department.
9-10 SECTION 6. Section 481.160(b), Government Code, is amended
9-11 to read as follows:
9-12 (b) The annual report must include for that fiscal year:
9-13 (1) the number of employers receiving grants under the
9-14 program;
9-15 (2) the total amount of grants awarded;
9-16 (3) the value, expressed in dollars and as a
9-17 percentage of total training expenditures, of matching
9-18 contributions made by employers;
9-19 (4) the number of small businesses, as defined by
9-20 Section 481.101(3), that receive grants under the program and the
9-21 total amount of the grants awarded to those businesses;
9-22 (5) the number of businesses located in enterprise
9-23 zones, as that term is defined by Chapter 2303, that receive grants
9-24 under the program and the total amount of the grants awarded to
9-25 those businesses;
9-26 (6) the geographical distribution of employers
9-27 receiving grants under the program;
10-1 (7) the total number of jobs created, enhanced, or
10-2 retained under the program, reported by region of the state and by
10-3 occupation;
10-4 (8) the wage levels of trainees entering or returning
10-5 to the work force, broken down by current employees undergoing
10-6 retraining and new hires, at three months and[,] one year[, and
10-7 three years] after the conclusion of their training;
10-8 (9) the number and percentage of participating
10-9 employers that provide workers' compensation insurance coverage and
10-10 the number and percentage of employees covered;
10-11 (10) the number and percentage of participating
10-12 employers that offer health care insurance coverage and the number
10-13 and percentage of employees covered;
10-14 (11) the number and percentage of women employers and
10-15 minority employers receiving grants under the program and the total
10-16 amount of the grants awarded, broken out by group;
10-17 (12) the number and percentage of women, minority
10-18 group members, and disabled individuals participating as trainees
10-19 in training projects, broken out by group; and
10-20 (13) the number and percentage of women private
10-21 providers and private providers who are minority group members
10-22 utilized by employers in training projects, broken out by group.
10-23 SECTION 7. This Act takes effect September 1, 1997.
10-24 SECTION 8. The importance of this legislation and the
10-25 crowded condition of the calendars in both houses create an
10-26 emergency and an imperative public necessity that the
10-27 constitutional rule requiring bills to be read on three several
11-1 days in each house be suspended, and this rule is hereby suspended.