By:  Ellis, West, Zaffirini                            S.B. No. 781

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     and the establishment of the Texas employment and training account.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

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

 1-5     adding Chapter 308 to read as follows:

 1-6                      CHAPTER 308.  TEXANS WORK PROGRAM

 1-7           Sec. 308.001.  LEGISLATIVE INTENT.  It is the intent of the

 1-8     legislature that this chapter is enacted to enlist employers in a

 1-9     partnership with this state to assist recipients of public

1-10     assistance in developing marketable work skills and obtaining

1-11     employment.

1-12           Sec. 308.002.  DEFINITIONS.  In this chapter:

1-13                 (1)  "Division"  means the division of workforce

1-14     development of the commission.

1-15                 (2)  "Employer" has the meaning assigned by Section

1-16     61.001.

1-17                 (3)  "JOBS training program" means the job

1-18     opportunities and basic skills (JOBS) training program under Part

1-19     F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).

1-20                 (4)  "Local workforce development board" means a board

1-21     created under Subchapter F, Chapter 2308, Government Code.

1-22                 (5)  "Program" means the Texans Work program

1-23     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

 3-1     or, if a local workforce development board does not exist in the

 3-2     employer's area, by the division.

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

 3-4     training course shall be designed by a local participating employer

 3-5     to meet the needs of that employer.  The training course must

 3-6     instruct the trainee in a prearranged curriculum of skills that

 3-7     uses systems specific to and produced by the employer's industry.

 3-8           (b)  The length of a training course may not be less than six

 3-9     months or more than 12 months unless an exception is approved by

3-10     the division.  The duration of a course shall be based on specific

3-11     training needs.

3-12           (c)  An employer whose participation is approved under

3-13     Section 308.003 shall submit to the division in the manner

3-14     prescribed by the commission a description of the employer's

3-15     proposed training course.  The employer shall work with the

3-16     division and the Texas Skill Standards Board to develop a training

3-17     course that incorporates instruction in the skill standards

3-18     applicable to that industry.  A training course may not be used by

3-19     an employer participating in the plan until the course is approved

3-20     by the commission.

3-21           Sec. 308.005.  POWERS AND DUTIES OF COMMISSION AND DIVISION;

3-22     GUIDELINES FOR TRAINING COURSE APPROVAL.  (a)  The commission shall

3-23     adopt rules as necessary to implement the program, including

3-24     establishing the criteria for determining which persons described

3-25     by Section 308.003(a) may be required to participate in the

 4-1     program.

 4-2           (b)  With the cooperation of the Texas Skill Standards Board,

 4-3     the commission shall develop guidelines for the approval of

 4-4     employer training courses.

 4-5           (c)  In developing guidelines under Subsection (b), the

 4-6     commission shall condition approval on the expectation that a

 4-7     participating employer will develop job descriptions that are

 4-8     relevant to regular paid positions in the employer's workplace or

 4-9     that are available in the community in which the employer is

4-10     located.  In determining whether to approve a particular training

4-11     course, the commission shall specifically consider:

4-12                 (1)  the administrative burden imposed by participation

4-13     in the program by the participating employer;

4-14                 (2)  whether the proposed training reasonably may be

4-15     expected to enhance the employability of individual trainees;

4-16                 (3)  whether the proposed training produces a realistic

4-17     and usable level of skills;

4-18                 (4)  whether the proposed training is composed of a

4-19     greater ratio of training-to-work than regular employees receive

4-20     under analogous conditions;

4-21                 (5)  whether the employer has any intention of

4-22     retaining successful trainees as regular employees;

4-23                 (6)  the extent to which the proposed training includes

4-24     nonspecific work skills; and

4-25                 (7)  if the employer has previously participated in the

 5-1     program, the prior performance of the employer in meeting the

 5-2     guidelines described by this subsection.

 5-3           (d)  The commission may develop incentives for employers who

 5-4     have completed a training course offered through the program to

 5-5     hire as a regular employee for a period of at least one year a

 5-6     trainee who has successfully completed the training course.

 5-7           Sec. 308.006.  POWERS AND DUTIES OF TEXAS DEPARTMENT OF HUMAN

 5-8     SERVICES.  The Texas Department of Human Services shall provide to

 5-9     the commission and a local workforce development board information

5-10     and technical assistance as necessary to implement the program.

5-11           Sec. 308.007.  RIGHTS AND DUTIES OF PARTICIPATING EMPLOYER.

5-12     (a)  Each employer who participates in the program shall provide a

5-13     work-training position for trainees under a contract entered into

5-14     with the local workforce development board or with the commission.

5-15           (b)  The employer shall interview and select the employer's

5-16     trainees from a list of eligible clients that is provided to the

5-17     employer by the local workforce development board or the

5-18     commission.

5-19           (c)  In the operation of a training course, a participating

5-20     employer may use training methods selected by the employer as long

5-21     as those methods instruct the trainees in the applicable skill at

5-22     the applicable standards.

5-23           (d)  An employer who participates in the program is not

5-24     liable for the payment of payroll taxes or contributions to the

5-25     unemployment compensation  system for a trainee and is not

 6-1     obligated to provide health insurance coverage or retirement or

 6-2     pension benefits for the trainee.  An employer is responsible to

 6-3     the JOBS training program only for quality training, skills

 6-4     certification, and reporting of attendance.

 6-5           (e)  During the training course, the employer shall pay $300

 6-6     per month for each trainee to the commission in the manner

 6-7     prescribed by the commission.  The commission shall deposit the

 6-8     amount in the general revenue fund to the credit of the Texas

 6-9     employment and training account.

6-10           (f)  A trainee is considered an employee of the employer for

6-11     purposes of Section 401.012.

6-12           Sec. 308.008.  RIGHTS OF REGULAR EMPLOYEES.  (a)  Except as

6-13     provided by Subsection (b), not more than 20 percent of an

6-14     employer's workforce may consist of trainees under the program.

6-15           (b)  Subsection (a)  does not apply to an employer who has

6-16     fewer than 50 employees.

6-17           (c)  As a condition of participation in the program, an

6-18     employer whose regular employees are subject to a collective

6-19     bargaining agreement shall notify the applicable collective

6-20     bargaining agent of the employer's intent to participate in the

6-21     program.  The employer shall provide the notice required under this

6-22     subsection before accepting trainees at the employer's workplace.

6-23           (d)  A participating employer may not accept a trainee for

6-24     participation in a training course conducted under the program if

6-25     that participation will:

 7-1                 (1)  result in:

 7-2                       (A)  the displacement or partial displacement of

 7-3     a regular employee from an existing position;

 7-4                       (B)  the elimination of a vacant position created

 7-5     by the laying off of a regular employee during the 90 days

 7-6     preceding the employer's participation in the program;

 7-7                       (C)  the elimination of a position that would

 7-8     otherwise constitute a promotion for a regular employee; or

 7-9                       (D)  a hiring freeze implemented by the employer;

7-10     or

7-11                 (2)  impair a collective bargaining agreement in effect

7-12     on the date that the employer proposes to begin participation in

7-13     the program.

7-14           Sec. 308.009.  RIGHTS AND DUTIES OF PARTICIPATING TRAINEES.

7-15     (a)  Each trainee who participates in the program shall work during

7-16     the training course not less than the minimum number of hours

7-17     required under applicable federal law for work participation for

7-18     recipients of public assistance.

7-19           (b)  Each trainee is entitled to:

7-20                 (1)  the rights provided under Chapters 21 and 101 as

7-21     if the trainee were a regular employee; and

7-22                 (2)  participation in an administrative dispute

7-23     resolution procedure conducted by the commission to resolve

7-24     grievances involving participation in the program.

7-25           (c)  Each trainee shall receive a skill standards

 8-1     certification on successful completion of a training course offered

 8-2     under the program.

 8-3           Sec. 308.010.  ACCOUNT.  (a)  The Texas employment and

 8-4     training account is established as a special account in the general

 8-5     revenue fund.  The account is composed of:

 8-6                 (1)  employer contributions paid under Section 308.007;

 8-7     and

 8-8                 (2)  state matching funds obtained through the block

 8-9     grant received by this state under the JOBS training program.

8-10           (b)  Money in the account may be used only for the payment of

8-11     training stipends and for other training activities authorized

8-12     under the program.

8-13           Sec. 308.011.  TRAINING STIPEND.  (a)  The state shall pay to

8-14     each trainee who demonstrates satisfactory participation in a

8-15     training program approved under this chapter a monthly training

8-16     stipend in the manner prescribed by Subsection (c).

8-17           (b)  The training stipend is composed of $600 paid to the

8-18     trainee from the Texas employment and training account.  In

8-19     addition to the stipend, the trainee shall continue to receive the

8-20     amount of benefits that the trainee is eligible to receive under

8-21     the program of financial assistance under Chapter 31, Human

8-22     Resources Code, and the food stamp program administered under

8-23     Chapter 33, Human Resources Code.

8-24           (c)  The state may transfer the monthly training stipend to a

8-25     trainee by electronic benefits transfer (EBT) to an account if that

 9-1     method is determined by the Texas Department of Human Services to

 9-2     be cost-effective.

 9-3           (d)  The training stipend does not constitute income to the

 9-4     trainee for purposes of determining eligibility for and the amount

 9-5     of benefits received under Chapter 31, Human Resources Code.  A

 9-6     trainee who participates in a training program in a satisfactory

 9-7     manner is entitled to full JOBS benefits and benefits under the

 9-8     financial assistance program and food stamp program during the

 9-9     training program.  A trainee who terminates participation in the

9-10     training program before the conclusion of the training loses

9-11     eligibility for the training stipend and the JOBS benefits but

9-12     remains eligible to receive benefits under the financial assistance

9-13     program and food stamp program.

9-14           (e)  Excessive unexcused absences from participation subjects

9-15     a trainee to a reduction in the training stipend in an amount set

9-16     by the commission.

9-17           (f)  The training stipend shall be paid on the first workday

9-18     of each month following the month in which the trainee participates

9-19     in the training program.

9-20           Sec. 308.012.  REPORT; RECORDS.  (a)  The commission shall

9-21     collect information and maintain records regarding:

9-22                 (1)  the operation and outcome of the program;

9-23                 (2)  impediments identified by the commission that

9-24     affect the successful operation of the program; and

9-25                 (3)  complaints or other comments regarding the program

 10-1    received by the commission from employers, trainees, regular

 10-2    employees, and local workforce development boards.

 10-3          (b)  Information maintained by the commission under

 10-4    Subsection (a) is a public record.

 10-5          (c)  The commission shall report to the 76th Legislature not

 10-6    later than January 31, 1999, regarding the information collected

 10-7    under Subsection (a).  This subsection expires March 1, 1999.

 10-8          SECTION 2.  Subchapter A, Chapter 31, Human Resources Code,

 10-9    is amended by adding Section 31.0037 to read as follows:

10-10          Sec. 31.0037.  EARNED INCOME FROM WORK PROGRAM.  The

10-11    department may not consider any income earned by a recipient of

10-12    financial assistance under the Texans Work program established

10-13    under Chapter 308, Labor Code, for purposes of determining:

10-14                (1)  the amount of financial assistance granted to an

10-15    individual under this chapter for the support of dependent

10-16    children; or

10-17                (2)  whether the family meets household income and

10-18    resource requirements for financial assistance under this chapter.

10-19          SECTION 3.  Subsection (b), Section 401.012, Labor Code, is

10-20    amended to read as follows:

10-21          (b)  The term "employee" includes:

10-22                (1)  an employee employed in the usual course and scope

10-23    of the employer's business who is directed by the employer

10-24    temporarily to perform services outside the usual course and scope

10-25    of the employer's business; [and]

 11-1                (2)  a person, other than an independent contractor or

 11-2    the employee of an independent contractor, who is engaged in

 11-3    construction, remodeling, or repair work for the employer at the

 11-4    premises of the employer; and

 11-5                (3)  a person who is a trainee under the Texans Work

 11-6    program established under Chapter 308.

 11-7          SECTION 4.  If, before implementing any provision of this

 11-8    Act, a state agency determines that a waiver or authorization from

 11-9    a federal agency is necessary for implementation, the state agency

11-10    shall request the waiver or authorization and may delay

11-11    implementing that provision until the waiver or authorization is

11-12    granted.

11-13          SECTION 5.  The changes in law made by this Act apply only to

11-14    a person who receives financial assistance under Chapter 31, Human

11-15    Resources Code, and food stamps administered by the Texas

11-16    Department of Human Services under Chapter 33, Human Resources

11-17    Code, on or after the effective date of this Act, regardless of the

11-18    date on which eligibility for the food stamps or financial

11-19    assistance was determined.

11-20          SECTION 6.  This Act takes effect September 1, 1997.

11-21          SECTION 7.  The importance of this legislation and the

11-22    crowded condition of the calendars in both houses create an

11-23    emergency and an imperative public necessity that the

11-24    constitutional rule requiring bills to be read on three several

11-25    days in each house be suspended, and this rule is hereby suspended.