1-1 By: Ellis, West, Zaffirini S.B. No. 781
1-2 (In the Senate - Filed February 25, 1997; March 4, 1997, read
1-3 first time and referred to Committee on Finance; April 9, 1997,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 11, Nays 0; April 9, 1997, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 781 By: West
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the creation and operation of the Texans Work program
1-10 and the establishment of the Texas employment and training account.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subtitle B, Title 4, Labor Code, is amended by
1-13 adding Chapter 308 to read as follows:
1-14 CHAPTER 308. TEXANS WORK PROGRAM
1-15 Sec. 308.001. LEGISLATIVE INTENT. It is the intent of the
1-16 legislature that this chapter is enacted to enlist employers in a
1-17 partnership with this state to assist recipients of public
1-18 assistance in developing marketable work skills and obtaining
1-19 employment.
1-20 Sec. 308.002. DEFINITIONS. In this chapter:
1-21 (1) "Division" means the division of workforce
1-22 development of the commission.
1-23 (2) "Employer" has the meaning assigned by Section
1-24 61.001.
1-25 (3) "JOBS training program" means the job
1-26 opportunities and basic skills (JOBS) training program under Part
1-27 F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).
1-28 (4) "Local workforce development board" means a board
1-29 created under Subchapter F, Chapter 2308, Government Code.
1-30 (5) "Program" means the Texans Work program
1-31 established under this chapter.
1-32 (6) "Trainee" means a recipient of food stamps under
1-33 the food stamp program administered under Chapter 33, Human
1-34 Resources Code, and financial assistance under Chapter 31, Human
1-35 Resources Code, who:
1-36 (A) is eligible to participate in the JOBS
1-37 training program; and
1-38 (B) receives on-the-job training through a
1-39 training course offered under the program.
1-40 (7) "Training course" means a course for the
1-41 development of practical employment skills that is:
1-42 (A) offered to trainees by an employer who
1-43 participates in the program; and
1-44 (B) approved as required by this chapter.
1-45 Sec. 308.003. TEXANS WORK PROGRAM. (a) The Texans Work
1-46 program is created as an integrated system of on-the-job training
1-47 for certain persons who receive food stamps under the food stamp
1-48 program administered under Chapter 33, Human Resources Code, and
1-49 financial assistance under Chapter 31, Human Resources Code, and
1-50 are eligible to participate in the JOBS training program. The
1-51 program shall be considered a means-tested program and shall be
1-52 operated through courses conducted by participating employers and
1-53 shall offer direct work experience and skills training.
1-54 (b) The program shall be offered in each area of this state
1-55 in which an employer is located who elects to participate and whose
1-56 participation is approved by the local workforce development board
1-57 or, if a local workforce development board does not exist in the
1-58 employer's area, by the division.
1-59 Sec. 308.004. TRAINING COURSES; APPROVAL. (a) Each
1-60 training course shall be designed by a local participating employer
1-61 to meet the needs of that employer. The training course must
1-62 instruct the trainee in a prearranged curriculum of skills that
1-63 uses systems specific to and produced by the employer's industry.
1-64 (b) The length of a training course may not be less than six
2-1 months or more than 12 months unless an exception is approved by
2-2 the division. The duration of a course shall be based on specific
2-3 training needs.
2-4 (c) An employer whose participation is approved under
2-5 Section 308.003 shall submit to the division in the manner
2-6 prescribed by the commission a description of the employer's
2-7 proposed training course. The employer shall work with the
2-8 division and the Texas Skill Standards Board to develop a training
2-9 course that incorporates instruction in the skill standards
2-10 applicable to that industry. A training course may not be used by
2-11 an employer participating in the plan until the course is approved
2-12 by the commission.
2-13 Sec. 308.005. POWERS AND DUTIES OF COMMISSION AND DIVISION;
2-14 GUIDELINES FOR TRAINING COURSE APPROVAL. (a) The commission shall
2-15 adopt rules as necessary to implement the program, including
2-16 establishing the criteria for determining which persons described
2-17 by Section 308.003(a) may be required to participate in the
2-18 program.
2-19 (b) With the cooperation of the Texas Skill Standards Board,
2-20 the commission shall develop guidelines for the approval of
2-21 employer training courses.
2-22 (c) In developing guidelines under Subsection (b), the
2-23 commission shall condition approval on the expectation that a
2-24 participating employer will develop job descriptions that are
2-25 relevant to regular paid positions in the employer's workplace or
2-26 that are available in the community in which the employer is
2-27 located. In determining whether to approve a particular training
2-28 course, the commission shall specifically consider:
2-29 (1) the administrative burden imposed by participation
2-30 in the program by the participating employer;
2-31 (2) whether the proposed training reasonably may be
2-32 expected to enhance the employability of individual trainees;
2-33 (3) whether the proposed training produces a realistic
2-34 and usable level of skills;
2-35 (4) whether the proposed training is composed of a
2-36 greater ratio of training-to-work than regular employees receive
2-37 under analogous conditions;
2-38 (5) whether the employer has any intention of
2-39 retaining successful trainees as regular employees;
2-40 (6) the extent to which the proposed training includes
2-41 nonspecific work skills; and
2-42 (7) if the employer has previously participated in the
2-43 program, the prior performance of the employer in meeting the
2-44 guidelines described by this subsection.
2-45 (d) The commission may develop incentives for employers who
2-46 have completed a training course offered through the program to
2-47 hire as a regular employee for a period of at least one year a
2-48 trainee who has successfully completed the training course.
2-49 Sec. 308.006. POWERS AND DUTIES OF TEXAS DEPARTMENT OF HUMAN
2-50 SERVICES. The Texas Department of Human Services shall provide to
2-51 the commission and a local workforce development board information
2-52 and technical assistance as necessary to implement the program.
2-53 Sec. 308.007. RIGHTS AND DUTIES OF PARTICIPATING EMPLOYER.
2-54 (a) Each employer who participates in the program shall provide a
2-55 work-training position for trainees under a contract entered into
2-56 with the local workforce development board or with the commission.
2-57 (b) The employer shall interview and select the employer's
2-58 trainees from a list of eligible clients that is provided to the
2-59 employer by the local workforce development board or the
2-60 commission.
2-61 (c) In the operation of a training course, a participating
2-62 employer may use training methods selected by the employer as long
2-63 as those methods instruct the trainees in the applicable skill at
2-64 the applicable standards.
2-65 (d) An employer who participates in the program is not
2-66 liable for the payment of payroll taxes or contributions to the
2-67 unemployment compensation system for a trainee and is not
2-68 obligated to provide health insurance coverage or retirement or
2-69 pension benefits for the trainee. An employer is responsible to
3-1 the JOBS training program only for quality training, skills
3-2 certification, and reporting of attendance.
3-3 (e) During the training course, the employer shall pay $300
3-4 per month for each trainee to the commission in the manner
3-5 prescribed by the commission. The commission shall deposit the
3-6 amount in the general revenue fund to the credit of the Texas
3-7 employment and training account.
3-8 (f) A trainee is considered an employee of the employer for
3-9 purposes of Section 401.012.
3-10 Sec. 308.008. RIGHTS OF REGULAR EMPLOYEES. (a) Except as
3-11 provided by Subsection (b), not more than 20 percent of an
3-12 employer's workforce may consist of trainees under the program.
3-13 (b) Subsection (a) does not apply to an employer who has
3-14 fewer than 50 employees.
3-15 (c) As a condition of participation in the program, an
3-16 employer whose regular employees are subject to a collective
3-17 bargaining agreement shall notify the applicable collective
3-18 bargaining agent of the employer's intent to participate in the
3-19 program. The employer shall provide the notice required under this
3-20 subsection before accepting trainees at the employer's workplace.
3-21 (d) A participating employer may not accept a trainee for
3-22 participation in a training course conducted under the program if
3-23 that participation will:
3-24 (1) result in:
3-25 (A) the displacement or partial displacement of
3-26 a regular employee from an existing position;
3-27 (B) the elimination of a vacant position created
3-28 by the laying off of a regular employee during the 90 days
3-29 preceding the employer's participation in the program;
3-30 (C) the elimination of a position that would
3-31 otherwise constitute a promotion for a regular employee; or
3-32 (D) a hiring freeze implemented by the employer;
3-33 or
3-34 (2) impair a collective bargaining agreement in effect
3-35 on the date that the employer proposes to begin participation in
3-36 the program.
3-37 Sec. 308.009. RIGHTS AND DUTIES OF PARTICIPATING TRAINEES.
3-38 (a) Each trainee who participates in the program shall work during
3-39 the training course not less than the minimum number of hours
3-40 required under applicable federal law for work participation for
3-41 recipients of public assistance.
3-42 (b) Each trainee is entitled to:
3-43 (1) the rights provided under Chapters 21 and 101 as
3-44 if the trainee were a regular employee; and
3-45 (2) participation in an administrative dispute
3-46 resolution procedure conducted by the commission to resolve
3-47 grievances involving participation in the program.
3-48 (c) Each trainee shall receive a skill standards
3-49 certification on successful completion of a training course offered
3-50 under the program.
3-51 Sec. 308.010. ACCOUNT. (a) The Texas employment and
3-52 training account is established as a special account in the general
3-53 revenue fund. The account is composed of:
3-54 (1) employer contributions paid under Section 308.007;
3-55 and
3-56 (2) state matching funds obtained through the block
3-57 grant received by this state under the JOBS training program.
3-58 (b) Money in the account may be used only for the payment of
3-59 training stipends and for other training activities authorized
3-60 under the program.
3-61 Sec. 308.011. TRAINING STIPEND. (a) The state shall pay to
3-62 each trainee who demonstrates satisfactory participation in a
3-63 training program approved under this chapter a monthly training
3-64 stipend in the manner prescribed by Subsection (c).
3-65 (b) The training stipend is composed of $600 paid to the
3-66 trainee from the Texas employment and training account. In
3-67 addition to the stipend, the trainee shall continue to receive the
3-68 amount of benefits that the trainee is eligible to receive under
3-69 the program of financial assistance under Chapter 31, Human
4-1 Resources Code, and the food stamp program administered under
4-2 Chapter 33, Human Resources Code.
4-3 (c) The state may transfer the monthly training stipend to a
4-4 trainee by electronic benefits transfer (EBT) to an account if that
4-5 method is determined by the Texas Department of Human Services to
4-6 be cost-effective.
4-7 (d) The training stipend does not constitute income to the
4-8 trainee for purposes of determining eligibility for and the amount
4-9 of benefits received under Chapter 31, Human Resources Code. A
4-10 trainee who participates in a training program in a satisfactory
4-11 manner is entitled to full JOBS benefits and benefits under the
4-12 financial assistance program and food stamp program during the
4-13 training program. A trainee who terminates participation in the
4-14 training program before the conclusion of the training loses
4-15 eligibility for the training stipend and the JOBS benefits but
4-16 remains eligible to receive benefits under the financial assistance
4-17 program and food stamp program.
4-18 (e) Excessive unexcused absences from participation subjects
4-19 a trainee to a reduction in the training stipend in an amount set
4-20 by the commission.
4-21 (f) The training stipend shall be paid on the first workday
4-22 of each month following the month in which the trainee participates
4-23 in the training program.
4-24 Sec. 308.012. REPORT; RECORDS. (a) The commission shall
4-25 collect information and maintain records regarding:
4-26 (1) the operation and outcome of the program;
4-27 (2) impediments identified by the commission that
4-28 affect the successful operation of the program; and
4-29 (3) complaints or other comments regarding the program
4-30 received by the commission from employers, trainees, regular
4-31 employees, and local workforce development boards.
4-32 (b) Information maintained by the commission under
4-33 Subsection (a) is a public record.
4-34 (c) The commission shall report to the 76th Legislature not
4-35 later than January 31, 1999, regarding the information collected
4-36 under Subsection (a). This subsection expires March 1, 1999.
4-37 SECTION 2. Subchapter A, Chapter 31, Human Resources Code,
4-38 is amended by adding Section 31.0037 to read as follows:
4-39 Sec. 31.0037. EARNED INCOME FROM WORK PROGRAM. The
4-40 department may not consider any income earned by a recipient of
4-41 financial assistance under the Texans Work program established
4-42 under Chapter 308, Labor Code, for purposes of determining:
4-43 (1) the amount of financial assistance granted to an
4-44 individual under this chapter for the support of dependent
4-45 children; or
4-46 (2) whether the family meets household income and
4-47 resource requirements for financial assistance under this chapter.
4-48 SECTION 3. Subsection (b), Section 401.012, Labor Code, is
4-49 amended to read as follows:
4-50 (b) The term "employee" includes:
4-51 (1) an employee employed in the usual course and scope
4-52 of the employer's business who is directed by the employer
4-53 temporarily to perform services outside the usual course and scope
4-54 of the employer's business; [and]
4-55 (2) a person, other than an independent contractor or
4-56 the employee of an independent contractor, who is engaged in
4-57 construction, remodeling, or repair work for the employer at the
4-58 premises of the employer; and
4-59 (3) a person who is a trainee under the Texans Work
4-60 program established under Chapter 308.
4-61 SECTION 4. If, before implementing any provision of this
4-62 Act, a state agency determines that a waiver or authorization from
4-63 a federal agency is necessary for implementation, the state agency
4-64 shall request the waiver or authorization and may delay
4-65 implementing that provision until the waiver or authorization is
4-66 granted.
4-67 SECTION 5. The changes in law made by this Act apply only to
4-68 a person who receives financial assistance under Chapter 31, Human
4-69 Resources Code, and food stamps administered by the Texas
5-1 Department of Human Services under Chapter 33, Human Resources
5-2 Code, on or after the effective date of this Act, regardless of the
5-3 date on which eligibility for the food stamps or financial
5-4 assistance was determined.
5-5 SECTION 6. This Act takes effect September 1, 1997.
5-6 SECTION 7. The importance of this legislation and the
5-7 crowded condition of the calendars in both houses create an
5-8 emergency and an imperative public necessity that the
5-9 constitutional rule requiring bills to be read on three several
5-10 days in each house be suspended, and this rule is hereby suspended.
5-11 * * * * *