AN ACT
1-1 relating to the creation and operation of the Texans Work program
1-2 and the establishment of individual development accounts in the
1-3 Texas employment and training account for certain recipients of
1-4 public assistance.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle B, Title 4, Labor Code, is amended by
1-7 adding Chapter 308 to read as follows:
1-8 CHAPTER 308. TEXANS WORK PROGRAM
1-9 Sec. 308.001. LEGISLATIVE INTENT. It is the intent of the
1-10 legislature that this chapter is enacted to enlist employers in a
1-11 partnership with this state to assist recipients of public
1-12 assistance in developing marketable work skills and obtaining
1-13 employment.
1-14 Sec. 308.002. DEFINITIONS. In this chapter:
1-15 (1) "Division" means the division of workforce
1-16 development of the commission.
1-17 (2) "Employer" has the meaning assigned by Section
1-18 61.001.
1-19 (3) "JOBS training program" means the job
1-20 opportunities and basic skills (JOBS) training program under Part
1-21 F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).
1-22 (4) "Local workforce development board" means a board
1-23 created under Subchapter F, Chapter 2308, Government Code.
2-1 (5) "Program" means the Texans Work program
2-2 established under this chapter.
2-3 (6) "Trainee" means a recipient of food stamps under
2-4 the food stamp program administered under Chapter 33, Human
2-5 Resources Code, and financial assistance under Chapter 31, Human
2-6 Resources Code, who:
2-7 (A) is eligible to participate in the JOBS
2-8 training program; and
2-9 (B) receives on-the-job training through a
2-10 training course offered under the program.
2-11 (7) "Training course" means a course for the
2-12 development of practical employment skills that is:
2-13 (A) offered to trainees by an employer who
2-14 participates in the program; and
2-15 (B) approved as required by this chapter.
2-16 Sec. 308.003. TEXANS WORK PROGRAM. (a) The Texans Work
2-17 program is created as an integrated system of on-the-job training
2-18 for certain persons who receive food stamps under the food stamp
2-19 program administered under Chapter 33, Human Resources Code, and
2-20 financial assistance under Chapter 31, Human Resources Code, and
2-21 are eligible to participate in the JOBS training program. The
2-22 program shall be considered a means-tested program and shall be
2-23 operated through courses conducted by participating employers and
2-24 shall offer direct work experience and skills training.
2-25 (b) The program shall be offered in each area of this state
3-1 in which an employer is located who elects to participate and whose
3-2 participation is approved by the local workforce development board
3-3 or, if a local workforce development board does not exist in the
3-4 employer's area, by the division.
3-5 Sec. 308.004. TRAINING COURSES; APPROVAL. (a) Each
3-6 training course shall be designed by a local participating employer
3-7 to meet the needs of that employer. The training course must
3-8 instruct the trainee in a prearranged curriculum of skills that
3-9 uses systems specific to and produced by the employer's industry.
3-10 (b) The length of a training course may not be less than six
3-11 months or more than 12 months unless an exception is approved by
3-12 the division. The duration of a course shall be based on specific
3-13 training needs.
3-14 (c) An employer whose participation is approved under
3-15 Section 308.003 shall submit to the division in the manner
3-16 prescribed by the commission a description of the employer's
3-17 proposed training course. The employer shall work with the
3-18 division and the Texas Skill Standards Board to develop a training
3-19 course that incorporates instruction in the skill standards
3-20 applicable to that industry. A training course may not be used by
3-21 an employer participating in the plan until the course is approved
3-22 by the commission.
3-23 Sec. 308.005. POWERS AND DUTIES OF COMMISSION AND DIVISION;
3-24 GUIDELINES FOR TRAINING COURSE APPROVAL. (a) The commission shall
3-25 adopt rules as necessary to implement the program, including
4-1 establishing the criteria for determining which persons described
4-2 by Section 308.003(a) may be required to participate in the
4-3 program.
4-4 (b) With the cooperation of the Texas Skill Standards Board,
4-5 the commission shall develop guidelines for the approval of
4-6 employer training courses.
4-7 (c) In developing guidelines under Subsection (b), the
4-8 commission shall condition approval on the expectation that a
4-9 participating employer will develop job descriptions that are
4-10 relevant to regular paid positions in the employer's workplace or
4-11 that are available in the community in which the employer is
4-12 located. In determining whether to approve a particular training
4-13 course, the commission shall specifically consider:
4-14 (1) the administrative burden imposed by participation
4-15 in the program by the participating employer;
4-16 (2) whether the proposed training reasonably may be
4-17 expected to enhance the employability of individual trainees;
4-18 (3) whether the proposed training produces a realistic
4-19 and usable level of skills;
4-20 (4) whether the proposed training is composed of a
4-21 greater ratio of training-to-work than regular employees receive
4-22 under analogous conditions;
4-23 (5) whether the employer has any intention of
4-24 retaining successful trainees as regular employees;
4-25 (6) the extent to which the proposed training includes
5-1 nonspecific work skills; and
5-2 (7) if the employer has previously participated in the
5-3 program, the prior performance of the employer in meeting the
5-4 guidelines described by this subsection.
5-5 (d) The commission may develop incentives for employers who
5-6 have completed a training course offered through the program to
5-7 hire as a regular employee for a period of at least one year a
5-8 trainee who has successfully completed the training course.
5-9 Sec. 308.006. POWERS AND DUTIES OF TEXAS DEPARTMENT OF HUMAN
5-10 SERVICES. The Texas Department of Human Services shall provide to
5-11 the commission and a local workforce development board information
5-12 and technical assistance as necessary to implement the program.
5-13 Sec. 308.007. RIGHTS AND DUTIES OF PARTICIPATING EMPLOYER.
5-14 (a) Each employer who participates in the program shall provide a
5-15 work-training position for trainees under a contract entered into
5-16 with the local workforce development board or with the commission.
5-17 (b) The employer shall interview and select the employer's
5-18 trainees from a list of eligible clients that is provided to the
5-19 employer by the local workforce development board or the
5-20 commission.
5-21 (c) In the operation of a training course, a participating
5-22 employer may use training methods selected by the employer as long
5-23 as those methods instruct the trainees in the applicable skill at
5-24 the applicable standards.
5-25 (d) An employer who participates in the program is not
6-1 liable for the payment of payroll taxes or contributions to the
6-2 unemployment compensation system for a trainee and is not obligated
6-3 to provide health insurance coverage or retirement or pension
6-4 benefits for the trainee. An employer is responsible to the JOBS
6-5 training program only for quality training, skills certification,
6-6 and reporting of attendance.
6-7 (e) During the training course, the employer shall pay $300
6-8 per month for each trainee to the commission in the manner
6-9 prescribed by the commission. The commission shall deposit the
6-10 amount in the general revenue fund to the credit of the Texas
6-11 employment and training account.
6-12 (f) A trainee is considered an employee of the employer for
6-13 purposes of Section 401.012.
6-14 Sec. 308.008. RIGHTS OF REGULAR EMPLOYEES. (a) Except as
6-15 provided by Subsection (b), not more than 20 percent of an
6-16 employer's workforce may consist of trainees under the program.
6-17 (b) Subsection (a) does not apply to an employer who has
6-18 fewer than 50 employees.
6-19 (c) As a condition of participation in the program, an
6-20 employer whose regular employees are subject to a collective
6-21 bargaining agreement shall notify the applicable collective
6-22 bargaining agent of the employer's intent to participate in the
6-23 program. The employer shall provide the notice required under this
6-24 subsection before accepting trainees at the employer's workplace.
6-25 (d) A participating employer may not accept a trainee for
7-1 participation in a training course conducted under the program if
7-2 that participation will:
7-3 (1) result in:
7-4 (A) the displacement or partial displacement of
7-5 a regular employee from an existing position;
7-6 (B) the elimination of a vacant position created
7-7 by the laying off of a regular employee during the 90 days
7-8 preceding the employer's participation in the program;
7-9 (C) the elimination of a position that would
7-10 otherwise constitute a promotion for a regular employee; or
7-11 (D) a hiring freeze implemented by the employer;
7-12 or
7-13 (2) impair a collective bargaining agreement in effect
7-14 on the date that the employer proposes to begin participation in
7-15 the program.
7-16 Sec. 308.009. RIGHTS AND DUTIES OF PARTICIPATING TRAINEES.
7-17 (a) Each trainee who participates in the program shall work during
7-18 the training course not less than the minimum number of hours
7-19 required under applicable federal law for work participation for
7-20 recipients of public assistance.
7-21 (b) Each trainee is entitled to:
7-22 (1) the rights provided under Chapters 21 and 101 as
7-23 if the trainee were a regular employee; and
7-24 (2) participation in an administrative dispute
7-25 resolution procedure conducted by the commission to resolve
8-1 grievances involving participation in the program.
8-2 (c) Each trainee shall receive a skill standards
8-3 certification on successful completion of a training course offered
8-4 under the program.
8-5 Sec. 308.010. ACCOUNT. (a) The Texas employment and
8-6 training account is established as a special account in the general
8-7 revenue fund. The account is composed of:
8-8 (1) employer contributions paid under Section 308.007;
8-9 and
8-10 (2) state matching funds obtained through the block
8-11 grant received by this state under the JOBS training program.
8-12 (b) Money in the account may be used only for the payment of
8-13 training stipends and for other training activities authorized
8-14 under the program.
8-15 Sec. 308.011. TRAINING STIPEND. (a) The state shall pay to
8-16 each trainee who demonstrates satisfactory participation in a
8-17 training program approved under this chapter a monthly training
8-18 stipend in the manner prescribed by Subsection (c).
8-19 (b) The training stipend is composed of $600 paid to the
8-20 trainee from the Texas employment and training account. In
8-21 addition to the stipend, the trainee shall continue to receive the
8-22 amount of benefits that the trainee is eligible to receive under
8-23 the program of financial assistance under Chapter 31, Human
8-24 Resources Code, and the food stamp program administered under
8-25 Chapter 33, Human Resources Code.
9-1 (c) The state may transfer the monthly training stipend to a
9-2 trainee by electronic benefits transfer (EBT) to an account if that
9-3 method is determined by the Texas Department of Human Services to
9-4 be cost-effective.
9-5 (d) The training stipend does not constitute income to the
9-6 trainee for purposes of determining eligibility for and the amount
9-7 of benefits received under Chapter 31, Human Resources Code. A
9-8 trainee who participates in a training program in a satisfactory
9-9 manner is entitled to full JOBS benefits and benefits under the
9-10 financial assistance program and food stamp program during the
9-11 training program. A trainee who terminates participation in the
9-12 training program before the conclusion of the training loses
9-13 eligibility for the training stipend and the JOBS benefits but
9-14 remains eligible to receive benefits under the financial assistance
9-15 program and food stamp program.
9-16 (e) Excessive unexcused absences from participation subjects
9-17 a trainee to a reduction in the training stipend in an amount set
9-18 by the commission.
9-19 (f) The training stipend shall be paid on the first workday
9-20 of each month following the month in which the trainee participates
9-21 in the training program.
9-22 Sec. 308.012. REPORT; RECORDS. (a) The commission shall
9-23 collect information and maintain records regarding:
9-24 (1) the operation and outcome of the program;
9-25 (2) impediments identified by the commission that
10-1 affect the successful operation of the program; and
10-2 (3) complaints or other comments regarding the program
10-3 received by the commission from employers, trainees, regular
10-4 employees, and local workforce development boards.
10-5 (b) Information maintained by the commission under
10-6 Subsection (a) is a public record.
10-7 (c) The commission shall report to the 76th Legislature not
10-8 later than January 31, 1999, regarding the information collected
10-9 under Subsection (a). This subsection expires March 1, 1999.
10-10 SECTION 2. Subchapter A, Chapter 31, Human Resources Code,
10-11 is amended by adding Section 31.0037 to read as follows:
10-12 Sec. 31.0037. EARNED INCOME FROM WORK PROGRAM. The
10-13 department may not consider any income earned by a recipient of
10-14 financial assistance under the Texans Work program established
10-15 under Chapter 308, Labor Code, for purposes of determining:
10-16 (1) the amount of financial assistance granted to an
10-17 individual under this chapter for the support of dependent
10-18 children; or
10-19 (2) whether the family meets household income and
10-20 resource requirements for financial assistance under this chapter.
10-21 SECTION 3. Subchapter B, Chapter 31, Human Resources Code,
10-22 is amended by adding Section 31.0321 to read as follows:
10-23 Sec. 31.0321. EXCLUSION OF CERTAIN INCOME AND RESOURCES.
10-24 (a) Except as provided by Subsection (b), the department may not
10-25 consider money contributed to a recipient's individual development
11-1 account under a pilot program by an employer, community group, or
11-2 financial institution as income or the balance of the account as a
11-3 resource in determining whether the recipient meets household
11-4 income and resource requirements for eligibility for financial
11-5 assistance.
11-6 (b) After consulting with the Texas Workforce Commission,
11-7 the department by rule may place limits on the amount of money not
11-8 considered as income or as a resource under Subsection (a).
11-9 (c) This section expires September 1, 2001.
11-10 SECTION 4. Chapter 33, Human Resources Code, is amended by
11-11 adding Section 33.012 to read as follows:
11-12 Sec. 33.012. EXCLUSION OF CERTAIN INCOME AND RESOURCES.
11-13 (a) Except as provided by Subsection (b), the department may not
11-14 consider money contributed to a recipient's individual development
11-15 account under a pilot program by an employer, community group, or
11-16 financial institution as income or the balance of the account as a
11-17 resource in determining whether the recipient meets household
11-18 income and resource requirements for eligibility for food stamps.
11-19 (b) After consulting with the Texas Workforce Commission,
11-20 the department by rule may place limits on the amount of money not
11-21 considered as income or as a resource under Subsection (a).
11-22 (c) This section expires September 1, 2001.
11-23 SECTION 5. Subchapter D, Chapter 301, Labor Code, is amended
11-24 by adding Section 301.067 to read as follows:
11-25 Sec. 301.067. PILOT PROGRAM: INDIVIDUAL DEVELOPMENT
12-1 ACCOUNTS FOR CERTAIN EMPLOYEES. (a) The commission by rule shall
12-2 establish and implement a pilot program under which an individual
12-3 development account is established for a recipient of financial
12-4 assistance under Chapter 31, Human Resources Code, who is employed
12-5 by a person in the private sector through a subsidized employment
12-6 program established under Section 31.0126(a)(5), Human Resources
12-7 Code.
12-8 (b) The commission may establish and administer an account
12-9 for a recipient under this section or may contract with a nonprofit
12-10 organization or financial institution to establish and administer
12-11 the account in accordance with commission rules.
12-12 (c) The commission shall encourage the following to match
12-13 deposits made by a recipient of financial assistance to an account
12-14 established under this section:
12-15 (1) private employers, including persons in the
12-16 private sector who employ one or more recipients through a
12-17 subsidized employment program established under Section
12-18 31.0126(a)(5), Human Resources Code;
12-19 (2) community groups; and
12-20 (3) financial institutions.
12-21 (d) Expenditures from a recipient's individual development
12-22 account established under this section while the recipient is
12-23 receiving financial assistance are limited to educational and
12-24 medical expenses, work-related expenses, including expenses of a
12-25 self-employment enterprise, and housing or moving expenses for the
13-1 recipient and a person who is a member of the AFDC-certified group.
13-2 (e) Not later than December 1 of 1998 and 2000, the
13-3 commission shall submit a report to the governor and the members of
13-4 the legislature regarding the status of the pilot program.
13-5 (f) This section expires September 1, 2001.
13-6 SECTION 6. Subsection (b), Section 401.012, Labor Code, is
13-7 amended to read as follows:
13-8 (b) The term "employee" includes:
13-9 (1) an employee employed in the usual course and scope
13-10 of the employer's business who is directed by the employer
13-11 temporarily to perform services outside the usual course and scope
13-12 of the employer's business; [and]
13-13 (2) a person, other than an independent contractor or
13-14 the employee of an independent contractor, who is engaged in
13-15 construction, remodeling, or repair work for the employer at the
13-16 premises of the employer; and
13-17 (3) a person who is a trainee under the Texans Work
13-18 program established under Chapter 308.
13-19 SECTION 7. If, before implementing any provision of this
13-20 Act, a state agency determines that a waiver or authorization from
13-21 a federal agency is necessary for implementation, the state agency
13-22 shall request the waiver or authorization and may delay
13-23 implementing that provision until the waiver or authorization is
13-24 granted.
13-25 SECTION 8. The changes in law made by this Act apply only to
14-1 a person who receives financial assistance under Chapter 31, Human
14-2 Resources Code, and food stamps administered by the Texas
14-3 Department of Human Services under Chapter 33, Human Resources
14-4 Code, on or after the effective date of this Act, regardless of the
14-5 date on which eligibility for the food stamps or financial
14-6 assistance was determined.
14-7 SECTION 9. This Act takes effect September 1, 1997.
14-8 SECTION 10. The importance of this legislation and the
14-9 crowded condition of the calendars in both houses create an
14-10 emergency and an imperative public necessity that the
14-11 constitutional rule requiring bills to be read on three several
14-12 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 781 passed the Senate on
April 24, 1997, by the following vote: Yeas 29, Nays 0; and that
the Senate concurred in House amendment on May 15, 1997, by a
viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 781 passed the House, with
amendment, on May 13, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor