By Ellis, et al.                                S.B. No. 1262

      75R7279 JMM-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation and operation of a pilot program to

 1-3     provide employment and training for certain persons on public

 1-4     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 309 to read as follows:

 1-8                    CHAPTER 309.  PILOT WORK PROGRAM FOR

 1-9                        PUBLIC ASSISTANCE RECIPIENTS

1-10           Sec. 309.001.  DEFINITIONS.  In this chapter:

1-11                 (1)  "Division" means the division of workforce

1-12     development of the commission.

1-13                 (2)  "Employer" has the meaning assigned by Section

1-14     61.001.

1-15                 (3)  "JOBS training program" means the job

1-16     opportunities and basic skills (JOBS) training program under Part

1-17     F, Subchapter IV, Social Security Act (42 U.S.C. Section 682).

1-18                 (4)  "Local workforce development board" means a board

1-19     created under Subchapter F, Chapter 2308, Government Code.

1-20                 (5)  "Pilot program" means the pilot work program for

1-21     recipients of public assistance established under this chapter.

1-22                 (6)  "Trainee"  means a recipient of food stamps under

1-23     the food stamp program under Chapter 33, Human Resources Code, and

1-24     financial assistance under Chapter 31, Human Resources Code, who:

 2-1                       (A)  is eligible to participate in the JOBS

 2-2     training program; and

 2-3                       (B)  receives on-the-job training through a

 2-4     training course offered under the pilot program.

 2-5                 (7)  "Training course" means a course for the

 2-6     development of practical employment skills that is:

 2-7                       (A)  offered to trainees by an employer who

 2-8     participates in the pilot program; and

 2-9                       (B)  approved as required by this chapter.

2-10           Sec. 309.002.  PILOT PROGRAM.  (a)  The division shall

2-11     establish a pilot program that provides on-the-job training and

2-12     other employment services for certain persons who receive food

2-13     stamps under the food stamp program under Chapter 33, Human

2-14     Resources Code, and financial assistance under Chapter 31, Human

2-15     Resources Code, and are eligible to participate in the JOBS

2-16     training program.  The pilot program shall be operated through

2-17     courses conducted by participating employers and shall offer direct

2-18     work experience and skills training.

2-19           (b)  The pilot program shall be offered in an area of the

2-20     state designated by the division.  An employer in the area may

2-21     elect to participate if approved by the local workforce development

2-22     board, or if a local workforce development board does not exist in

2-23     the employer's area, by the division.

2-24           (c)  The pilot program must include ongoing job-retention and

2-25     reemployment assistance for not less than one year for a

2-26     participant who obtains part-time employment after completing the

2-27     pilot program.

 3-1           Sec. 309.003.  TRAINING COURSES; APPROVAL.  Each training

 3-2     course shall be designed by a local participating employer to meet

 3-3     the needs of that employer.  The training course must instruct the

 3-4     trainee in a prearranged curriculum of skills that uses systems

 3-5     specific to and produced by the employer's industry.

 3-6           Sec. 309.004.  POWERS AND DUTIES OF COMMISSION; DIVISION.

 3-7     (a)  The commission shall adopt rules as necessary to implement the

 3-8     pilot program, including establishing the criteria for determining

 3-9     which persons described by Section 309.002(a) may be required to

3-10     participate in the pilot program.

3-11           (b)  With the cooperation of the Texas Skill Standards Board,

3-12     the commission shall develop guidelines for the approval of

3-13     employer training courses.

3-14           (c)  The Texas Department of Human Services shall provide to

3-15     the commission and a local workforce development board information

3-16     and technical assistance as necessary to implement the pilot

3-17     program.

3-18           Sec. 309.005.  TRAINING STIPEND; PAYROLL TAXES.  (a)  The

3-19     state shall pay to each trainee who demonstrates satisfactory

3-20     participation in a training pilot program approved under this

3-21     chapter a monthly training stipend in the manner prescribed by

3-22     Subsection (c).

3-23           (b)  The training stipend is composed of:

3-24                 (1)  $600 paid to the trainee; and

3-25                 (2)  the amount of benefits that the trainee is

3-26     eligible to receive under the pilot program of financial assistance

3-27     under Chapter 31, Human Resources Code, and the food stamp program

 4-1     administered under Chapter 33, Human Resources Code.

 4-2           (c)  The state shall transfer the monthly training stipend to

 4-3     a trainee by electronic benefits transfer (EBT) to an account.

 4-4           (d)  The training stipend does not constitute income to the

 4-5     trainee.  A trainee who participates in a pilot program in a

 4-6     satisfactory manner is entitled to full JOBS benefits and benefits

 4-7     under the financial assistance program and food stamp program

 4-8     during the pilot program.  A trainee who terminates participation

 4-9     in the pilot program before the conclusion of the training loses

4-10     eligibility for the training stipend and the JOBS benefits but

4-11     remains eligible to receive benefits under the financial assistance

4-12     program and food stamp program.

4-13           (e)  Excessive unexcused absences from participation subjects

4-14     a trainee to a reduction in the training stipend in an amount set

4-15     by the commission.

4-16           (f)  An employer who participates in the pilot program is not

4-17     liable for the payment of payroll taxes or contributions to the

4-18     unemployment compensation  system for a trainee and is not

4-19     obligated to provide workers' compensation insurance coverage,

4-20     health insurance coverage, or retirement or pension benefits for

4-21     the trainee.  An employer is responsible to the JOBS training

4-22     program only for quality training, skills certification, and

4-23     reporting of attendance.

4-24           SECTION 2.  Subchapter A, Chapter 31, Human Resources Code,

4-25     is amended by adding Section 31.0037 to read as follows:

4-26           Sec. 31.0037.  EARNED INCOME FROM WORK PROGRAM.  The

4-27     department may not consider any income earned by a recipient of

 5-1     financial assistance under the pilot work program established under

 5-2     Chapter 309, Labor Code, for purposes of determining:

 5-3                 (1)  the amount of financial assistance granted to an

 5-4     individual under this chapter for the support of dependent

 5-5     children; or

 5-6                 (2)  whether the family meets household income and

 5-7     resource requirements for financial assistance under this chapter.

 5-8           SECTION 3.  If, before implementing any provision of this

 5-9     Act, a state agency determines that a waiver or authorization from

5-10     a federal agency is necessary for implementation, the state agency

5-11     shall request the waiver or authorization and may delay

5-12     implementing that provision until the waiver or authorization is

5-13     granted.

5-14           SECTION 4.  The changes in law made by this Act apply only to

5-15     a person who receives financial assistance under Chapter 31, Human

5-16     Resources Code, and food stamps administered by the Texas

5-17     Department of Human Services under Chapter 33, Human Resources

5-18     Code, on or after the effective date of this Act, regardless of the

5-19     date on which eligibility for the food stamps or financial

5-20     assistance was determined.

5-21           SECTION 5.  Not later than January 15, 1999, the Texas

5-22     Workforce Commission shall submit to the governor and the

5-23     legislature an initial report concerning the effectiveness of the

5-24     pilot program created under Chapter 309, Labor Code.  The Texas

5-25     Workforce Commission shall submit to the governor and legislature a

5-26     subsequent report not later than January 15, 2001.

5-27           SECTION 6.  (a)  This Act takes effect September 1, 1997.

 6-1           (b)  The Texas Workforce Commission shall establish the pilot

 6-2     program required by Chapter 309, Labor Code, as added by this Act,

 6-3     not later than January 1, 1998.

 6-4           SECTION 7.  Chapter 309, Labor Code, expires September 1,

 6-5     2001.

 6-6           SECTION 8.  The importance of this legislation and the

 6-7     crowded condition of the calendars in both houses create an

 6-8     emergency and an imperative public necessity that the

 6-9     constitutional rule requiring bills to be read on three several

6-10     days in each house be suspended, and this rule is hereby suspended.