AN ACT

 1-1     relating to authorizing the Texas Engineering Extension Service to

 1-2     participate in the skills development fund.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (a), Section 303.001, Labor Code, is

 1-5     amended to read as follows:

 1-6           (a)  The purpose of this chapter is to remove administrative

 1-7     barriers that impede the response of public community and technical

 1-8     colleges and the Texas Engineering Extension Service to industry

 1-9     and workforce training needs and to develop incentives for public

1-10     community and technical colleges and the Texas Engineering

1-11     Extension Service to provide customized assessment and training in

1-12     a timely and efficient manner.

1-13           SECTION 2.  Subsection (b), Section 303.002, Labor Code, is

1-14     amended to read as follows:

1-15           (b)  A public community or technical college or the Texas

1-16     Engineering Extension Service may recover customized assessment and

1-17     training costs incurred by the institution [college] if:

1-18                 (1)  there is an actual or projected labor shortage in

1-19     the occupation in which training is provided that is not being met

1-20     by an existing institution or program in the area; and

1-21                 (2)  the wages at the time of job placement for

1-22     individuals who successfully complete customized training at the

1-23     public community or technical college or the Texas Engineering

 2-1     Extension Service are equal to the prevailing wage for that

 2-2     occupation in the local labor market area.

 2-3           SECTION 3.  Section 303.003, Labor Code, is amended by

 2-4     amending Subsection (b) and adding Subsections (f) and (g) to read

 2-5     as follows:

 2-6           (b)  The skills development fund may be used by public

 2-7     community and technical colleges or the Texas Engineering Extension

 2-8     Service as start-up or emergency funds for the following

 2-9     job-training purposes:

2-10                 (1)  developing customized training programs for

2-11     businesses and trade unions; and

2-12                 (2)  sponsoring small and medium-sized business

2-13     networks and consortiums.

2-14           (f)  The Texas Engineering Extension Service shall focus the

2-15     service's training activities under this chapter on programs that:

2-16                 (1)  are statewide in nature; or

2-17                 (2)  are not available from a local junior college

2-18     district, a local technical college, or a consortium of junior

2-19     college districts.

2-20           (g)  This section does not prohibit the Texas Engineering

2-21     Extension Service from participating in a consortium of junior

2-22     college districts or with a technical college that provides

2-23     training under this chapter.

2-24           SECTION 4.  Section 303.004, Labor Code, is amended to read

2-25     as follows:

                                                               S.B. No. 1712

 3-1           Sec. 303.004.  FUND REVIEW.  The Texas Higher Education

 3-2     Coordinating Board shall review all customized training programs

 3-3     biennially to verify that state funds are being used appropriately

 3-4     by public community and technical colleges and the Texas

 3-5     Engineering Extension Service under this chapter.

 3-6           SECTION 5.  The importance of this legislation and the

 3-7     crowded condition of the calendars in both houses create an

 3-8     emergency and an imperative public necessity that the

 3-9     constitutional rule requiring bills to be read on three several

3-10     days in each house be suspended, and this rule is hereby suspended,

3-11     and that this Act take effect and be in force from and after its

3-12     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1712 passed the Senate on

         April 17, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendment on May 6, 1997, by the

         following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1712 passed the House, with

         amendment, on May 2, 1997, by the following vote:  Yeas 142,

         Nays 0, two present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor