1-1                                   AN ACT

 1-2     relating to work supplementation programs for certain welfare

 1-3     recipients.


 1-5           SECTION 1.  Subchapter G, Chapter 2308, Government Code, is

 1-6     amended by adding Section 2308.314 to read as follows:



 1-9     may not hire a welfare recipient under a work supplementation

1-10     program if the hiring:

1-11                 (1)  will result in:

1-12                       (A)  the displacement or partial displacement of

1-13     an employee from an existing position; or

1-14                       (B)  the elimination of a vacant position created

1-15     by the layoff of an employee in the preceding 30 days; or

1-16                 (2)  is the result of a strike.

1-17           (b)  A participant in a work supplementation program is:

1-18                 (1)  considered an employee of the participating

1-19     employer for all purposes under state and federal law;

1-20                 (2)  entitled to receive compensation at a rate that is

1-21     not less than the rate the employer pays other employees with

1-22     similar background, training, or experience who are performing the

1-23     same type work; and

1-24                 (3)  entitled to the same rights as the employer's

 2-1     other employees under any applicable grievance procedures.

 2-2           (c)  An employer participating in a work supplementation

 2-3     program may not require as a condition of employment that an

 2-4     employee hired under the program join or refrain from joining a

 2-5     labor organization.

 2-6           (d)  This section does not create or authorize a cause of

 2-7     action against an employer.

 2-8           (e)  In this section:

 2-9                 (1)  "Participant" means a welfare recipient who

2-10     participates in a work supplementation program.

2-11                 (2)  "Welfare recipient" means a person who receives

2-12     financial assistance under Chapter 31, Human Resources Code, or

2-13     food stamps under the food stamp program administered under Chapter

2-14     33, Human  Resources Code.

2-15                 (3)  "Work supplementation program" means:

2-16                       (A)  a program under which the state reserves all

2-17     or part of the amounts that would be payable as benefits to welfare

2-18     recipients and uses those amounts to provide and subsidize jobs for

2-19     the recipients;

2-20                       (B)  a program under which the state grants an

2-21     employer a tax credit, tax abatement, or other favorable tax

2-22     treatment for hiring  welfare recipients; or

2-23                       (C)  a program under which welfare recipients

2-24     work for an employer in exchange for benefits.

2-25           (f)  Not later than December 15, 1998, the Texas Workforce

2-26     Commission shall prepare and issue to the governor, the lieutenant

2-27     governor, and the speaker of the house of representatives an

 3-1     assessment of the impact of this section on the ability of

 3-2     recipients of public assistance to obtain employment.

 3-3           (g)  This section expires September 1, 2003.

 3-4           SECTION 2.  If, before implementing any provision of this

 3-5     Act, a state agency determines that a waiver or authorization from

 3-6     a federal agency is necessary for implementation, the state agency

 3-7     shall request the waiver or authorization and may delay

 3-8     implementing that provision until the waiver or authorization is

 3-9     granted.

3-10           SECTION 3.  This Act does not apply to:

3-11                 (1)  a work supplementation program, as defined by

3-12     Section 2308.314(e)(3)(A) or (C), Government Code, as added by this

3-13     Act, that is created by H.B. No. 1639, S.B. No. 781, or a similar

3-14     bill if the bill is enacted by the 75th Legislature, Regular

3-15     Session, 1997, and becomes law and contains one or more provisions

3-16     prohibiting the displacement from existing positions of employees

3-17     of an employer who is or will be participating in the program; or

3-18                 (2)  a volunteer work experience program established

3-19     under Section 31.0125, Human Resources Code.

3-20           SECTION 4.  This Act takes effect September 1, 1997.

3-21           SECTION 5.  The importance of this legislation and the

3-22     crowded condition of the calendars in both houses create an

3-23     emergency and an imperative public necessity that the

3-24     constitutional rule requiring bills to be read on three several

3-25     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 3116 was passed by the House on April

         18, 1997, by the following vote:  Yeas 85, Nays 53, 1 present, not

         voting; and that the House concurred in Senate amendments to H.B.

         No. 3116 on May 28, 1997, by a non-record vote; and that the House

         adopted H.C.R. No. 321 authorizing certain corrections in H.B. No.

         3116 on May 30, 1997, by a non-record vote.


                                                 Chief Clerk of the House

               I certify that H.B. No. 3116 was passed by the Senate, with

         amendments, on May 26, 1997, by the following vote:  Yeas 31, Nays

         0; and that the Senate adopted H.C.R. No. 321 authorizing certain

         corrections in H.B. No. 3116 on June 1, 1997, by a viva-voce vote.


                                                 Secretary of the Senate

         APPROVED:  _____________________