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.