By Ellis, et al. S.B. No. 781 75R2615 PB/CLG-D 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 the Texas employment and training account. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle B, Title 4, Labor Code, is amended by 1-6 adding Chapter 308 to read as follows: 1-7 CHAPTER 308. TEXANS WORK PROGRAM 1-8 Sec. 308.001. DEFINITIONS. In this chapter: 1-9 (1) "Division" means the division of workforce 1-10 development of the commission. 1-11 (2) "Employer" has the meaning assigned by Section 1-12 61.001. 1-13 (3) "JOBS training program" means the job 1-14 opportunities and basic skills (JOBS) training program under Part 1-15 F, Subchapter IV, Social Security Act (42 U.S.C. Section 682). 1-16 (4) "Local workforce development board" means a board 1-17 created under Subchapter F, Chapter 2308, Government Code. 1-18 (5) "Program" means the Texans Work program 1-19 established under this chapter. 1-20 (6) "Trainee" means a recipient of food stamps under 1-21 the food stamp program under Chapter 33, Human Resources Code, and 1-22 financial assistance under Chapter 31, Human Resources Code, who: 1-23 (A) is eligible to participate in the JOBS 1-24 training program; and 2-1 (B) receives on-the-job training through a 2-2 training course offered under the program. 2-3 (7) "Training course" means a course for the 2-4 development of practical employment skills that is: 2-5 (A) offered to trainees by an employer who 2-6 participates in the program; and 2-7 (B) approved as required by this chapter. 2-8 Sec. 308.002. TEXANS WORK PROGRAM. (a) The Texans Work 2-9 program is created as an integrated system of on-the-job training 2-10 for certain persons who receive food stamps under the food stamp 2-11 program under Chapter 33, Human Resources Code, and financial 2-12 assistance under Chapter 31, Human Resources Code, and are eligible 2-13 to participate in the JOBS training program. The program shall be 2-14 operated through courses conducted by participating employers and 2-15 shall offer direct work experience and skills training. 2-16 (b) The program shall be offered in each area of this state 2-17 in which an employer is located who elects to participate and whose 2-18 participation is approved by the local workforce development board, 2-19 or if a local workforce development board does not exist in the 2-20 employer's area, by the division. 2-21 Sec. 308.003. TRAINING COURSES; APPROVAL. (a) Each 2-22 training course shall be designed by a local participating employer 2-23 to meet the needs of that employer. The training course must 2-24 instruct the trainee in a prearranged curriculum of skills that 2-25 uses systems specific to and produced by the employer's industry. 2-26 (b) The length of a training course may not be less than six 2-27 months or more than 12 months unless an exception is approved by 3-1 the division. The duration of a course shall be based on specific 3-2 training needs. 3-3 (c) An employer whose participation is approved under 3-4 Section 308.002 shall submit to the division in the manner 3-5 prescribed by the commission a description of the employer's 3-6 proposed training course. The employer shall work with the 3-7 division and the Texas Skill Standards Board to develop a training 3-8 course that incorporates instruction in the skill standards 3-9 applicable to that industry. A training course may not be used by 3-10 an employer participating in the plan until the course is approved 3-11 by the commission. 3-12 Sec. 308.004. POWERS AND DUTIES OF COMMISSION; DIVISION. 3-13 (a) The commission shall adopt rules as necessary to implement the 3-14 program, including establishing the criteria for determining which 3-15 persons described by Section 308.002(a) may be required to 3-16 participate in the program. 3-17 (b) With the cooperation of the Texas Skill Standards Board, 3-18 the commission shall develop guidelines for the approval of 3-19 employer training courses. 3-20 (c) The Texas Department of Human Services shall provide to 3-21 the commission and a local workforce development board information 3-22 and technical assistance as necessary to implement the program. 3-23 Sec. 308.005. RIGHTS AND DUTIES OF PARTICIPATING EMPLOYER. 3-24 (a) Each employer who participates in the program shall provide a 3-25 work-training position for trainees under a contract entered into 3-26 with the local workforce development board or with the commission. 3-27 (b) The employer shall interview and select the employer's 4-1 trainees from a list of eligible clients that is provided to the 4-2 employer by the local workforce development board or the 4-3 commission. 4-4 (c) In the operation of a training course, a participating 4-5 employer may use training methods selected by the employer as long 4-6 as those methods instruct the trainees in the applicable skill at 4-7 the applicable standards. 4-8 (d) An employer who participates in the program is not 4-9 liable for the payment of payroll taxes or contributions to the 4-10 unemployment compensation system for a trainee and is not 4-11 obligated to provide workers' compensation insurance coverage, 4-12 health insurance coverage, or retirement or pension benefits for 4-13 the trainee. An employer is responsible to the JOBS training 4-14 program only for quality training, skills certification, and 4-15 reporting of attendance. 4-16 (e) During the training course, the employer shall pay $300 4-17 per month for each trainee to the commission in the manner 4-18 prescribed by the commission. The commission shall deposit the 4-19 amount in the general revenue fund to the credit of the Texas 4-20 employment and training account. 4-21 Sec. 308.006. RIGHTS AND DUTIES OF PARTICIPATING TRAINEE. 4-22 (a) Each trainee who participates in the plan shall work 40 hours 4-23 per week during the training course. 4-24 (b) A trainee is entitled to receive a skill standards 4-25 certification on successful completion of a training course offered 4-26 under the program. 4-27 Sec. 308.007. ACCOUNT. (a) The Texas employment and 5-1 training account is established as a special account in the general 5-2 revenue fund. The account is composed of: 5-3 (1) employer contributions paid under Section 308.005; 5-4 and 5-5 (2) state matching funds obtained through the block 5-6 grant received by this state under the JOBS training program. 5-7 (b) Money in the account may be used only for the payment of 5-8 training stipends and for other training activities authorized 5-9 under the program. 5-10 Sec. 308.008. TRAINING STIPEND. (a) The state shall pay to 5-11 each trainee who demonstrates satisfactory participation in a 5-12 training program approved under this chapter a monthly training 5-13 stipend in the manner prescribed by Subsection (c). 5-14 (b) The training stipend is composed of: 5-15 (1) $600 paid to the trainee from the Texas employment 5-16 and training account; and 5-17 (2) the amount of benefits that the trainee is 5-18 eligible to receive under the program of financial assistance under 5-19 Chapter 31, Human Resources Code, and the food stamp program 5-20 administered under Chapter 33, Human Resources Code. 5-21 (c) The state shall transfer the monthly training stipend to 5-22 a trainee by electronic benefits transfer (EBT) to an account. 5-23 (d) The training stipend does not constitute income to the 5-24 trainee. A trainee who participates in a training program in a 5-25 satisfactory manner is entitled to full JOBS benefits and benefits 5-26 under the financial assistance program and food stamp program 5-27 during the training program. A trainee who terminates 6-1 participation in the training program before the conclusion of the 6-2 training loses eligibility for the training stipend and the JOBS 6-3 benefits but remains eligible to receive benefits under the 6-4 financial assistance program and food stamp program. 6-5 (e) Excessive unexcused absences from participation subjects 6-6 a trainee to a reduction in the training stipend in an amount set 6-7 by the commission. 6-8 SECTION 2. Subchapter A, Chapter 31, Human Resources Code, 6-9 is amended by adding Section 31.0037 to read as follows: 6-10 Sec. 31.0037. EARNED INCOME FROM WORK PROGRAM. The 6-11 department may not consider any income earned by a recipient of 6-12 financial assistance under the Texans Work program established 6-13 under Chapter 308, Labor Code, for purposes of determining: 6-14 (1) the amount of financial assistance granted to an 6-15 individual under this chapter for the support of dependent 6-16 children; or 6-17 (2) whether the family meets household income and 6-18 resource requirements for financial assistance under this chapter. 6-19 SECTION 3. If, before implementing any provision of this 6-20 Act, a state agency determines that a waiver or authorization from 6-21 a federal agency is necessary for implementation, the state agency 6-22 shall request the waiver or authorization and may delay 6-23 implementing that provision until the waiver or authorization is 6-24 granted. 6-25 SECTION 4. The changes in law made by this Act apply only to 6-26 a person who receives financial assistance under Chapter 31, Human 6-27 Resources Code, and food stamps administered by the Texas 7-1 Department of Human Services under Chapter 33, Human Resources 7-2 Code, on or after the effective date of this Act, regardless of the 7-3 date on which eligibility for the food stamps or financial 7-4 assistance was determined. 7-5 SECTION 5. This Act takes effect September 1, 1997. 7-6 SECTION 6. The importance of this legislation and the 7-7 crowded condition of the calendars in both houses create an 7-8 emergency and an imperative public necessity that the 7-9 constitutional rule requiring bills to be read on three several 7-10 days in each house be suspended, and this rule is hereby suspended.