HBA-NLM H.B. 1407 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1407 By: Coleman Economic Development 3/3/1999 Introduced BACKGROUND AND PURPOSE Texas has recently been challenged by federal welfare reforms to provide jobs to 50 percent of the state's welfare recipients by the year 2002. Working with businesses to offer on-the-job training and direct work experience to those on public assistance is one attempt to meet the challenge. H.B. 1407 creates the self-sufficiency fund for use by public community and technical colleges and state extension agencies to develop job-training programs for recipients of the Temporary Assistance for Needy Families (TANF) program. This bill establishes that the training programs will also be provided by businesses and trade unions, small and medium-sized business networks, and consortiums. This bill codifies current rules adopted by the Texas Workforce Commission. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Workforce Commission in SECTION 1 (Sec. 309.004, Labor Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle B, Title 4, Labor Code, by adding Chapter 309, as follows: CHAPTER 309. SELF-SUFFICIENCY FUND Sec. 309.001. DEFINITIONS. Defines "community-based organization" and "fund." Sec. 309.002. SELF-SUFFICIENCY FUND. (a) Establishes the creation of a self-sufficiency fund for use by public community and technical colleges, community-based organizations, and state extension agencies as start-up funds to develop customized job-training programs for certain recipients of financial assistance under Chapter 31 (Financial Assistance and Service Programs), Human Resources Code. Specifies that the job-training will be provided by an entity that develops a job-training program under this section, an informal partnership between such an entity and a small or medium-sized business network or consortium, or a business or trade union. (b) Provides that the money from the fund may be used for support services for participants in training activities as necessary. (c) Prohibits the use of money from the fund to pay for the training costs and other related costs of an employer who relocates the employer's worksite from one location in this state to another in-state location. (d) Requires the Texas Workforce Commission (commission) to administer the fund. Provides that the executive director, or a person appointed by the executive director who is knowledgeable in the administration of grants, is responsible for the distribution of money from the fund. Sec. 309.003. JOB-TRAINING PROGRAMS. Requires an entity that receives money from the fund for a job-training program financed by the fund to work in conjunction with employers to employ graduates of the program in positions in which graduates will earn sufficient wages to facilitate independence from financial assistance under Chapter 31, Human Resources Code, and, if applicable, assistance provided under the food stamp program administered by the Texas Department of Human Services under Chapter 33 (Nutritional Assistance Programs), Human Resources Code. Sec. 309.004. RULEMAKING AUTHORITY. Requires the commission to adopt rules to implement this chapter, including rules: (1) to determine which recipients of financial assistance under Chapter 31, Human Resources Code, are eligible to participate in job-training programs developed with money form the fund; and (2) to ensure that an entity that develops a job-training program with money from the fund works in conjunction with employers to set curricula and propose employment for participants in the program. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.