By Raymond                                            H.B. No. 1639

         Substitute the following for H.B. No. 1639:

         By Raymond                                        C.S.H.B. No. 1639

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation and operation of the Texans Work program

 1-3     and the establishment of the Texas employment and training account.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subtitle B, Title 4, Labor Code, is amended by

 1-6     adding Chapter 308 to read as follows:

 1-7                      CHAPTER 308.  TEXANS WORK PROGRAM

 1-8           Sec. 308.001.  LEGISLATIVE INTENT.  It is the intent of the

 1-9     legislature that this chapter is enacted to enlist employers in a

1-10     partnership with this state to assist recipients of public

1-11     assistance in developing marketable work skills and obtaining

1-12     employment.

1-13           Sec. 308.002.  DEFINITIONS.  In this chapter:

1-14                 (1)  "Division"  means the division of workforce

1-15     development of the commission.

1-16                 (2)  "Employer" has the meaning assigned by Section

1-17     61.001.

1-18                 (3)  "JOBS training program" means the job

1-19     opportunities and basic skills (JOBS) training program under Part

1-20     F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).

1-21                 (4)  "Local workforce development board" means a board

1-22     created under Subchapter F, Chapter 2308, Government Code.

1-23                 (5)  "Program" means the Texans Work program

1-24     established under this chapter.

 2-1                 (6)  "Trainee" means a recipient of food stamps under

 2-2     the food stamp program administered under Chapter 33, Human

 2-3     Resources Code, and financial assistance under Chapter 31, Human

 2-4     Resources Code, who:

 2-5                       (A)  is eligible to participate in the JOBS

 2-6     training program; and

 2-7                       (B)  receives on-the-job training through a

 2-8     training course offered under the program.

 2-9                 (7)  "Training course" means a course for the

2-10     development of practical employment skills that is:

2-11                       (A)  offered to trainees by an employer who

2-12     participates in the program; and

2-13                       (B)  approved as required by this chapter.

2-14           Sec. 308.003.  TEXANS WORK PROGRAM.  (a)  The Texans Work

2-15     program is created as an integrated system of on-the-job training

2-16     for certain persons who receive food stamps under the food stamp

2-17     program administered under Chapter 33, Human Resources Code, and

2-18     financial assistance under Chapter 31, Human Resources Code, and

2-19     are eligible to participate in the JOBS training program.  The

2-20     program shall be considered a means-tested program and shall be

2-21     operated through courses conducted by participating employers and

2-22     shall offer direct work experience and skills training.

2-23           (b)  The program shall be offered in each area of this state

2-24     in which an employer is located who elects to participate and whose

2-25     participation is approved by the local workforce development board,

2-26     or if a local workforce development board does not exist in the

2-27     employer's area, by the division.

 3-1           Sec. 308.004.  TRAINING COURSES; APPROVAL.  (a)  Each

 3-2     training course shall be designed by a local participating employer

 3-3     to meet the needs of that employer.  The training course must

 3-4     instruct the trainee in a prearranged curriculum of skills that

 3-5     uses systems specific to and produced by the employer's industry.

 3-6           (b)  The length of a training course may not be less than six

 3-7     months or more than 12 months unless an exception is approved by

 3-8     the division. The duration of a course shall be based on specific

 3-9     training needs.

3-10           (c)  An employer whose participation is approved under

3-11     Section 308.003 shall submit to the division in the manner

3-12     prescribed by the commission a description of the employer's

3-13     proposed training course.  The employer shall work with the

3-14     division and the Texas Skill Standards Board to develop a training

3-15     course that incorporates instruction in the skill standards

3-16     applicable to that industry.  A training course may not be used by

3-17     an employer participating in the plan until the course is approved

3-18     by the commission.

3-19           Sec. 308.005.  POWERS AND DUTIES OF COMMISSION AND DIVISION;

3-20     GUIDELINES FOR TRAINING COURSE APPROVAL.  (a)  The commission shall

3-21     adopt rules as necessary to implement the program, including

3-22     establishing the criteria for determining which persons described

3-23     by Section 308.003(a) may be required to participate in the

3-24     program.

3-25           (b)  With the cooperation of the Texas Skill Standards Board,

3-26     the commission shall develop guidelines for the approval of

3-27     employer training courses.

 4-1           (c)  In developing guidelines under Subsection (b), the

 4-2     commission shall condition approval on the expectation that a

 4-3     participating employer will develop job descriptions that are

 4-4     relevant to regular paid positions in the employer's workplace or

 4-5     that are available in the community in which the employer is

 4-6     located.  In determining whether to approve a particular training

 4-7     course, the commission shall specifically consider:

 4-8                 (1)  the administrative burden imposed by participation

 4-9     in the program by the participating employer;

4-10                 (2)  whether the proposed training reasonably may be

4-11     expected to enhance the employability of individual trainees;

4-12                 (3)  whether the proposed training produces a realistic

4-13     and usable level of skills;

4-14                 (4)  whether the proposed training is composed of a

4-15     greater ratio of training-to-work than regular employees receive

4-16     under analogous conditions;

4-17                 (5)  whether the employer has any intention of

4-18     retaining successful trainees as regular employees;

4-19                 (6)  the extent to which the proposed training includes

4-20     nonspecific work skills; and

4-21                 (7)  if the employer has previously participated in the

4-22     program, the prior performance of the employer in meeting the

4-23     guidelines described by this subsection.

4-24           (d)  The commission may develop incentives for employers who

4-25     have completed a training course offered through the program to

4-26     hire as a regular employee for a period of at least one year a

4-27     trainee who has successfully completed the training course.

 5-1           Sec. 308.006.  POWERS AND DUTIES OF TEXAS DEPARTMENT OF HUMAN

 5-2     SERVICES.  The Texas Department of Human Services shall provide to

 5-3     the commission and a local workforce development board information

 5-4     and technical assistance as necessary to implement the program.

 5-5           Sec. 308.007.  RIGHTS AND DUTIES OF PARTICIPATING EMPLOYER.

 5-6     (a)  Each employer who participates in the program shall provide a

 5-7     work-training position for trainees under a contract entered into

 5-8     with the local workforce development board or with the commission.

 5-9           (b)  The employer shall interview and select the employer's

5-10     trainees from a list of eligible clients that is provided to the

5-11     employer by the local workforce development board or the

5-12     commission.

5-13           (c)  In the operation of a training course, a participating

5-14     employer may use training methods selected by the employer as long

5-15     as those methods instruct the trainees in the applicable skill at

5-16     the applicable standards.

5-17           (d)  An employer who participates in the program is not

5-18     liable for the payment of payroll taxes or contributions to the

5-19     unemployment compensation  system for a trainee and is not

5-20     obligated to provide health insurance coverage, or retirement or

5-21     pension benefits for the trainee.  An employer is responsible to

5-22     the JOBS training program only for quality training, skills

5-23     certification, and reporting of attendance.

5-24           (e)  During the training course, the employer shall pay $300

5-25     per month for each trainee to the commission in the manner

5-26     prescribed by the commission.  The commission shall deposit the

5-27     amount in the general revenue fund to the credit of the Texas

 6-1     employment and training account.

 6-2           (f)  A trainee is considered an employee of the employer for

 6-3     the purposes of Section 401.012, Labor Code.

 6-4           Sec. 308.008.  RIGHTS OF REGULAR EMPLOYEES.  (a)  Except as

 6-5     provided by Subsection (b), not more than 20 percent of an

 6-6     employer's workforce may consist of trainees under the program.

 6-7           (b)  Subsection (a)   does not apply to an employer who has

 6-8     fewer than 50 employees.

 6-9           (c)  As a condition of participation in the program, an

6-10     employer whose regular employees are subject to a collective

6-11     bargaining agreement shall notify the applicable collective

6-12     bargaining agent of the employer's intent to participate in the

6-13     program.  The employer shall provide the notice required under this

6-14     subsection before accepting trainees at the employer's workplace.

6-15           (d)  A participating employer may not accept a trainee for

6-16     participation in a training course conducted under the program if

6-17     that participation will:

6-18                 (1)  result in:

6-19                       (A)  the displacement or partial displacement of

6-20     a regular employee from an existing position;

6-21                       (B)  the elimination of a vacant position created

6-22     by the laying off of a regular employee during the 90 days

6-23     preceding the employer's participation in the program;

6-24                       (C)  the elimination of a position that would

6-25     otherwise constitute a promotion for a regular employee; or

6-26                       (D)  a hiring freeze implemented by the employer;

6-27     or

 7-1                 (2)  impair a collective bargaining agreement in effect

 7-2     on the date that the employer proposes to begin participation in

 7-3     the program.

 7-4           Sec. 308.009.  RIGHTS AND DUTIES OF PARTICIPATING TRAINEES.

 7-5     (a)  Each trainee who participates in the program shall work during

 7-6     the training course not less than the minimum number of hours

 7-7     required under applicable federal law for work participation for

 7-8     recipients of public assistance.

 7-9           (b)  Each trainee is entitled to:

7-10                 (1)  the rights provided under Chapters 21 and 101 as

7-11     if the trainee were a regular employee; and

7-12                 (2)  participation in an administrative dispute

7-13     resolution procedure conducted by the commission to resolve

7-14     grievances involving participation in the program.

7-15           (c)  Each trainee shall receive a skill standards

7-16     certification on successful completion of a training course offered

7-17     under the program.

7-18           Sec. 308.010.  ACCOUNT.  (a)  The Texas employment and

7-19     training account is established as a special account in the general

7-20     revenue fund.  The account is composed of:

7-21                 (1)  employer contributions paid under Section 308.007;

7-22     and

7-23                 (2)  state matching funds obtained through the block

7-24     grant received by this state under the JOBS training program.

7-25           (b)  Money in the account may be used only for the payment of

7-26     training stipends and for other training activities authorized

7-27     under the program.

 8-1           Sec. 308.011.  TRAINING STIPEND.  (a)  The state shall pay to

 8-2     each trainee who demonstrates satisfactory participation in a

 8-3     training program approved under this chapter a monthly training

 8-4     stipend in the manner prescribed by Subsection (c).

 8-5           (b)  The training stipend is composed of $600 paid to the

 8-6     trainee from the Texas employment and training account.  In

 8-7     addition to the stipend, the trainee shall continue to receive the

 8-8     amount of benefits that the trainee is eligible to receive under

 8-9     the program of financial assistance under Chapter 31, Human

8-10     Resources Code, and the food stamp program administered under

8-11     Chapter 33, Human Resources Code.

8-12           (c)  The state may transfer the monthly training stipend to a

8-13     trainee by electronic benefits transfer (EBT) to an account if that

8-14     method is determined by the Texas Department of Human Services to

8-15     be cost-effective.

8-16           (d)  The training stipend does not constitute income to the

8-17     trainee for purposes of determining eligibility for and the amount

8-18     of benefits received under Chapter 31, Human Resources Code.  A

8-19     trainee who participates in a training program in a satisfactory

8-20     manner is entitled to full JOBS benefits and benefits under the

8-21     financial assistance program and food stamp program during the

8-22     training program.  A trainee who terminates participation in the

8-23     training program before the conclusion of the training loses

8-24     eligibility for the training stipend and the JOBS benefits but

8-25     remains eligible to receive benefits under the financial assistance

8-26     program and food stamp program.

8-27           (e)  Excessive unexcused absences from participation subjects

 9-1     a trainee to a reduction in the training stipend in an amount set

 9-2     by the commission.

 9-3           (f)  The training stipend shall be paid on the first workday

 9-4     of each month following the month in which the trainee participates

 9-5     in the training program.

 9-6           Sec. 308.012.  REPORT; RECORDS.  (a)  The commission shall

 9-7     collect information and maintain records regarding:

 9-8                 (1)  the operation and outcome of the program;

 9-9                 (2)  impediments identified by the commission that

9-10     affect the successful operation of the program; and

9-11                 (3)  complaints or other comments regarding the program

9-12     received by the commission from employers, trainees, regular

9-13     employees, and local workforce development boards.

9-14           (b)  Information maintained by the commission under

9-15     Subsection (a) is a public record.

9-16           (c)  The commission shall report to the 76th Legislature not

9-17     later than January 31, 1999, regarding the information collected

9-18     under Subsection (a).  This subsection expires March 1, 1999.

9-19           SECTION 2.  Subchapter A, Chapter 31, Human Resources Code,

9-20     is amended by adding Section 31.0037 to read as follows:

9-21           Sec. 31.0037.  EARNED INCOME FROM WORK PROGRAM.  The

9-22     department may not consider any income earned by a recipient of

9-23     financial assistance under the Texans Work program established

9-24     under Chapter 308, Labor Code, for purposes of determining:

9-25                 (1)  the amount of financial assistance granted to an

9-26     individual under this chapter for the support of dependent

9-27     children; or

 10-1                (2)  whether the family meets household income and

 10-2    resource requirements for financial assistance under this chapter.

 10-3          SECTION 3.  Sec. 401.012(b), Labor Code, is amended to read

 10-4    as follows:

 10-5          (b)  The term "employee" includes:

 10-6                (1)  an employee employed in the usual course and scope

 10-7    of the employer's business who is directed by the employer

 10-8    temporarily to perform services outside the usual course and scope

 10-9    of the employer's business; [and]

10-10                (2)  a person, other than an independent contractor or

10-11    the employee of an independent contractor, who is engaged in

10-12    construction, remodeling, or repair work for the employer at the

10-13    premises of the employer; and

10-14                (3)  a person who is a trainee in the Texans Work

10-15    program, as that term is defined in Section 308.001, Labor Code.

10-16          SECTION 4.  If, before implementing any provision of this

10-17    Act, a state agency determines that a waiver or authorization from

10-18    a federal agency is necessary for implementation, the state agency

10-19    shall request the waiver or authorization and may delay

10-20    implementing that provision until the waiver or authorization is

10-21    granted.

10-22          SECTION 5.  The changes in law made by this Act apply only to

10-23    a person who receives financial assistance under Chapter 31, Human

10-24    Resources Code, and food stamps administered by the Texas

10-25    Department of Human Services under Chapter 33, Human Resources

10-26    Code, on or after the effective date of this Act, regardless of the

10-27    date on which eligibility for the food stamps or financial

 11-1    assistance was determined.

 11-2          SECTION 6.  This Act takes effect September 1, 1997.

 11-3          SECTION 7.  The importance of this legislation and the

 11-4    crowded condition of the calendars in both houses create an

 11-5    emergency and an imperative public necessity that the

 11-6    constitutional rule requiring bills to be read on three several

 11-7    days in each house be suspended, and this rule is hereby suspended.