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