75R14268 CLG-F
By Ellis, et al. S.B. No. 781
Substitute the following for S.B. No. 781:
By Raymond C.S.S.B. No. 781
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 individual development accounts in the
1-4 Texas employment and training account for certain recipients of
1-5 public assistance.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Subtitle B, Title 4, Labor Code, is amended by
1-8 adding Chapter 308 to read as follows:
1-9 CHAPTER 308. TEXANS WORK PROGRAM
1-10 Sec. 308.001. LEGISLATIVE INTENT. It is the intent of the
1-11 legislature that this chapter is enacted to enlist employers in a
1-12 partnership with this state to assist recipients of public
1-13 assistance in developing marketable work skills and obtaining
1-14 employment.
1-15 Sec. 308.002. DEFINITIONS. In this chapter:
1-16 (1) "Division" means the division of workforce
1-17 development of the commission.
1-18 (2) "Employer" has the meaning assigned by Section
1-19 61.001.
1-20 (3) "JOBS training program" means the job
1-21 opportunities and basic skills (JOBS) training program under Part
1-22 F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).
1-23 (4) "Local workforce development board" means a board
1-24 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
2-26 in which an employer is located who elects to participate and whose
2-27 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
3-26 program.
3-27 (b) With the cooperation of the Texas Skill Standards Board,
4-1 the commission shall develop guidelines for the approval of
4-2 employer training courses.
4-3 (c) In developing guidelines under Subsection (b), the
4-4 commission shall condition approval on the expectation that a
4-5 participating employer will develop job descriptions that are
4-6 relevant to regular paid positions in the employer's workplace or
4-7 that are available in the community in which the employer is
4-8 located. In determining whether to approve a particular training
4-9 course, the commission shall specifically consider:
4-10 (1) the administrative burden imposed by participation
4-11 in the program by the participating employer;
4-12 (2) whether the proposed training reasonably may be
4-13 expected to enhance the employability of individual trainees;
4-14 (3) whether the proposed training produces a realistic
4-15 and usable level of skills;
4-16 (4) whether the proposed training is composed of a
4-17 greater ratio of training-to-work than regular employees receive
4-18 under analogous conditions;
4-19 (5) whether the employer has any intention of
4-20 retaining successful trainees as regular employees;
4-21 (6) the extent to which the proposed training includes
4-22 nonspecific work skills; and
4-23 (7) if the employer has previously participated in the
4-24 program, the prior performance of the employer in meeting the
4-25 guidelines described by this subsection.
4-26 (d) The commission may develop incentives for employers who
4-27 have completed a training course offered through the program to
5-1 hire as a regular employee for a period of at least one year a
5-2 trainee who has successfully completed the training course.
5-3 Sec. 308.006. POWERS AND DUTIES OF TEXAS DEPARTMENT OF HUMAN
5-4 SERVICES. The Texas Department of Human Services shall provide to
5-5 the commission and a local workforce development board information
5-6 and technical assistance as necessary to implement the program.
5-7 Sec. 308.007. RIGHTS AND DUTIES OF PARTICIPATING EMPLOYER.
5-8 (a) Each employer who participates in the program shall provide a
5-9 work-training position for trainees under a contract entered into
5-10 with the local workforce development board or with the commission.
5-11 (b) The employer shall interview and select the employer's
5-12 trainees from a list of eligible clients that is provided to the
5-13 employer by the local workforce development board or the
5-14 commission.
5-15 (c) In the operation of a training course, a participating
5-16 employer may use training methods selected by the employer as long
5-17 as those methods instruct the trainees in the applicable skill at
5-18 the applicable standards.
5-19 (d) An employer who participates in the program is not
5-20 liable for the payment of payroll taxes or contributions to the
5-21 unemployment compensation system for a trainee and is not
5-22 obligated to provide health insurance coverage or retirement or
5-23 pension benefits for the trainee. An employer is responsible to
5-24 the JOBS training program only for quality training, skills
5-25 certification, and reporting of attendance.
5-26 (e) During the training course, the employer shall pay $300
5-27 per month for each trainee to the commission in the manner
6-1 prescribed by the commission. The commission shall deposit the
6-2 amount in the general revenue fund to the credit of the Texas
6-3 employment and training account.
6-4 (f) A trainee is considered an employee of the employer for
6-5 purposes of Section 401.012.
6-6 Sec. 308.008. RIGHTS OF REGULAR EMPLOYEES. (a) Except as
6-7 provided by Subsection (b), not more than 20 percent of an
6-8 employer's workforce may consist of trainees under the program.
6-9 (b) Subsection (a) does not apply to an employer who has
6-10 fewer than 50 employees.
6-11 (c) As a condition of participation in the program, an
6-12 employer whose regular employees are subject to a collective
6-13 bargaining agreement shall notify the applicable collective
6-14 bargaining agent of the employer's intent to participate in the
6-15 program. The employer shall provide the notice required under this
6-16 subsection before accepting trainees at the employer's workplace.
6-17 (d) A participating employer may not accept a trainee for
6-18 participation in a training course conducted under the program if
6-19 that participation will:
6-20 (1) result in:
6-21 (A) the displacement or partial displacement of
6-22 a regular employee from an existing position;
6-23 (B) the elimination of a vacant position created
6-24 by the laying off of a regular employee during the 90 days
6-25 preceding the employer's participation in the program;
6-26 (C) the elimination of a position that would
6-27 otherwise constitute a promotion for a regular employee; or
7-1 (D) a hiring freeze implemented by the employer;
7-2 or
7-3 (2) impair a collective bargaining agreement in effect
7-4 on the date that the employer proposes to begin participation in
7-5 the program.
7-6 Sec. 308.009. RIGHTS AND DUTIES OF PARTICIPATING TRAINEES.
7-7 (a) Each trainee who participates in the program shall work during
7-8 the training course not less than the minimum number of hours
7-9 required under applicable federal law for work participation for
7-10 recipients of public assistance.
7-11 (b) Each trainee is entitled to:
7-12 (1) the rights provided under Chapters 21 and 101 as
7-13 if the trainee were a regular employee; and
7-14 (2) participation in an administrative dispute
7-15 resolution procedure conducted by the commission to resolve
7-16 grievances involving participation in the program.
7-17 (c) Each trainee shall receive a skill standards
7-18 certification on successful completion of a training course offered
7-19 under the program.
7-20 Sec. 308.010. ACCOUNT. (a) The Texas employment and
7-21 training account is established as a special account in the general
7-22 revenue fund. The account is composed of:
7-23 (1) employer contributions paid under Section 308.007;
7-24 and
7-25 (2) state matching funds obtained through the block
7-26 grant received by this state under the JOBS training program.
7-27 (b) Money in the account may be used only for the payment of
8-1 training stipends and for other training activities authorized
8-2 under the program.
8-3 Sec. 308.011. TRAINING STIPEND. (a) The state shall pay to
8-4 each trainee who demonstrates satisfactory participation in a
8-5 training program approved under this chapter a monthly training
8-6 stipend in the manner prescribed by Subsection (c).
8-7 (b) The training stipend is composed of $600 paid to the
8-8 trainee from the Texas employment and training account. In
8-9 addition to the stipend, the trainee shall continue to receive the
8-10 amount of benefits that the trainee is eligible to receive under
8-11 the program of financial assistance under Chapter 31, Human
8-12 Resources Code, and the food stamp program administered under
8-13 Chapter 33, Human Resources Code.
8-14 (c) The state may transfer the monthly training stipend to a
8-15 trainee by electronic benefits transfer (EBT) to an account if that
8-16 method is determined by the Texas Department of Human Services to
8-17 be cost-effective.
8-18 (d) The training stipend does not constitute income to the
8-19 trainee for purposes of determining eligibility for and the amount
8-20 of benefits received under Chapter 31, Human Resources Code. A
8-21 trainee who participates in a training program in a satisfactory
8-22 manner is entitled to full JOBS benefits and benefits under the
8-23 financial assistance program and food stamp program during the
8-24 training program. A trainee who terminates participation in the
8-25 training program before the conclusion of the training loses
8-26 eligibility for the training stipend and the JOBS benefits but
8-27 remains eligible to receive benefits under the financial assistance
9-1 program and food stamp program.
9-2 (e) Excessive unexcused absences from participation subjects
9-3 a trainee to a reduction in the training stipend in an amount set
9-4 by the commission.
9-5 (f) The training stipend shall be paid on the first workday
9-6 of each month following the month in which the trainee participates
9-7 in the training program.
9-8 Sec. 308.012. REPORT; RECORDS. (a) The commission shall
9-9 collect information and maintain records regarding:
9-10 (1) the operation and outcome of the program;
9-11 (2) impediments identified by the commission that
9-12 affect the successful operation of the program; and
9-13 (3) complaints or other comments regarding the program
9-14 received by the commission from employers, trainees, regular
9-15 employees, and local workforce development boards.
9-16 (b) Information maintained by the commission under
9-17 Subsection (a) is a public record.
9-18 (c) The commission shall report to the 76th Legislature not
9-19 later than January 31, 1999, regarding the information collected
9-20 under Subsection (a). This subsection expires March 1, 1999.
9-21 SECTION 2. Subchapter A, Chapter 31, Human Resources Code,
9-22 is amended by adding Section 31.0037 to read as follows:
9-23 Sec. 31.0037. EARNED INCOME FROM WORK PROGRAM. The
9-24 department may not consider any income earned by a recipient of
9-25 financial assistance under the Texans Work program established
9-26 under Chapter 308, Labor Code, for purposes of determining:
9-27 (1) the amount of financial assistance granted to an
10-1 individual under this chapter for the support of dependent
10-2 children; or
10-3 (2) whether the family meets household income and
10-4 resource requirements for financial assistance under this chapter.
10-5 SECTION 3. Subchapter B, Chapter 31, Human Resources Code,
10-6 is amended by adding Section 31.0321 to read as follows:
10-7 Sec. 31.0321. EXCLUSION OF CERTAIN INCOME AND RESOURCES.
10-8 (a) Except as provided by Subsection (b), the department may not
10-9 consider money contributed to a recipient's individual development
10-10 account under a pilot program by an employer, community group, or
10-11 financial institution as income or the balance of the account as a
10-12 resource in determining whether the recipient meets household
10-13 income and resource requirements for eligibility for financial
10-14 assistance.
10-15 (b) After consulting with the Texas Workforce Commission,
10-16 the department by rule may place limits on the amount of money not
10-17 considered as income or as a resource under Subsection (a).
10-18 (c) This section expires September 1, 2001.
10-19 SECTION 4. Chapter 33, Human Resources Code, is amended by
10-20 adding Section 33.012 to read as follows:
10-21 Sec. 33.012. EXCLUSION OF CERTAIN INCOME AND RESOURCES.
10-22 (a) Except as provided by Subsection (b), the department may not
10-23 consider money contributed to a recipient's individual development
10-24 account under a pilot program by an employer, community group, or
10-25 financial institution as income or the balance of the account as a
10-26 resource in determining whether the recipient meets household
10-27 income and resource requirements for eligibility for food stamps.
11-1 (b) After consulting with the Texas Workforce Commission,
11-2 the department by rule may place limits on the amount of money not
11-3 considered as income or as a resource under Subsection (a).
11-4 (c) This section expires September 1, 2001.
11-5 SECTION 5. Subchapter D, Chapter 301, Labor Code, is amended
11-6 by adding Section 301.067 to read as follows:
11-7 Sec. 301.067. PILOT PROGRAM: INDIVIDUAL DEVELOPMENT
11-8 ACCOUNTS FOR CERTAIN EMPLOYEES. (a) The commission by rule shall
11-9 establish and implement a pilot program under which an individual
11-10 development account is established for a recipient of financial
11-11 assistance under Chapter 31, Human Resources Code, who is employed
11-12 by a person in the private sector through a subsidized employment
11-13 program established under Section 31.0126(a)(5), Human Resources
11-14 Code.
11-15 (b) The commission may establish and administer an account
11-16 for a recipient under this section or may contract with a nonprofit
11-17 organization or financial institution to establish and administer
11-18 the account in accordance with commission rules.
11-19 (c) The commission shall encourage the following to match
11-20 deposits made by a recipient of financial assistance to an account
11-21 established under this section:
11-22 (1) private employers, including persons in the
11-23 private sector who employ one or more recipients through a
11-24 subsidized employment program established under Section
11-25 31.0126(a)(5), Human Resources Code;
11-26 (2) community groups; and
11-27 (3) financial institutions.
12-1 (d) Expenditures from a recipient's individual development
12-2 account established under this section while the recipient is
12-3 receiving financial assistance are limited to educational and
12-4 medical expenses, work-related expenses, including expenses of a
12-5 self-employment enterprise, and housing or moving expenses for the
12-6 recipient and a person who is a member of the AFDC-certified group.
12-7 (e) Not later than December 1 of 1998 and 2000, the
12-8 commission shall submit a report to the governor and the members of
12-9 the legislature regarding the status of the pilot program.
12-10 (f) This section expires September 1, 2001.
12-11 SECTION 6. Subsection (b), Section 401.012, Labor Code, is
12-12 amended to read as follows:
12-13 (b) The term "employee" includes:
12-14 (1) an employee employed in the usual course and scope
12-15 of the employer's business who is directed by the employer
12-16 temporarily to perform services outside the usual course and scope
12-17 of the employer's business; [and]
12-18 (2) a person, other than an independent contractor or
12-19 the employee of an independent contractor, who is engaged in
12-20 construction, remodeling, or repair work for the employer at the
12-21 premises of the employer; and
12-22 (3) a person who is a trainee under the Texans Work
12-23 program established under Chapter 308.
12-24 SECTION 7. If, before implementing any provision of this
12-25 Act, a state agency determines that a waiver or authorization from
12-26 a federal agency is necessary for implementation, the state agency
12-27 shall request the waiver or authorization and may delay
13-1 implementing that provision until the waiver or authorization is
13-2 granted.
13-3 SECTION 8. The changes in law made by this Act apply only to
13-4 a person who receives financial assistance under Chapter 31, Human
13-5 Resources Code, and food stamps administered by the Texas
13-6 Department of Human Services under Chapter 33, Human Resources
13-7 Code, on or after the effective date of this Act, regardless of the
13-8 date on which eligibility for the food stamps or financial
13-9 assistance was determined.
13-10 SECTION 9. This Act takes effect September 1, 1997.
13-11 SECTION 10. The importance of this legislation and the
13-12 crowded condition of the calendars in both houses create an
13-13 emergency and an imperative public necessity that the
13-14 constitutional rule requiring bills to be read on three several
13-15 days in each house be suspended, and this rule is hereby suspended.