SRC-AXB H.B. 2401 76(R) BILL ANALYSIS Senate Research Center H.B. 2401 By: Keffer (Ellis) Education 5/13/1999 Engrossed DIGEST The Education Code allows for Career and Technology Education enrichment curricula to be offered to promote partnerships between students and businesses. These types of programs have been developed nationwide and many states have incorporated youth apprenticeship and internship programs into statute. H.B. 2401 creates provisions for the establishment of voluntary workforce training programs for certain students, and the creation of a regional tech-prep consortia. PURPOSE As proposed, H.B. 2401 creates provisions for the establishment of voluntary workforce training programs for certain students, and the creation of a regional tech-prep consortia. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 4B, Labor Code, by adding Chapter 311, as follows: CHAPTER 311. VOLUNTARY WORKFORCE TRAINING FOR CERTAIN STUDENTS Sec. 311.001. DEFINITIONS. Defines "agency," "certified program," "participant," and "sponsor." Sec. 311.002. CERTIFICATION STANDARDS. Sets forth eligibility requirements for program certification by the Texas Education Agency (TEA). Sec. 311.003. CERTIFIED PROGRAM AGREEMENTS. Requires a certified program to be conducted under a signed written agreement between each participant and the employer. Sets forth information the agreement is authorized to include. Prohibits a participant's time spent in a program from exceeding 15 hours a week, without regard to renumeration. Authorizes a participant to enter into a postsecondary education agreement with the employer. Sets forth requirements of such an agreement. Requires the participant and employer to be refunded by a certain deadline, if a participant does not continue in the program before beginning postsecondary education. Requires money to be held in trust for the benefit of the participant under TEA rules. Provides that payment into such a trust satisfies the requirement of this subsection. Requires the fund to be specified in the agreement. Prohibits an employer who enters into an agreement from keeping participants from replacing current employees. Sec. 311.004. RULEMAKING. Requires TEA and the Texas Youth Commission (TYC) to adopt rules to administer duties under this chapter. Requires these entities to cooperate so that all adopted rules are consistent and easily administered. Requires rules to include a requirement that program participation is voluntary. Sec. 311.005. COMMISSION DUTIES; LOCAL WORKFORCE DEVELOPMENT BOARDS. Sets forth TYC requirements. Requires a local workforce development board (board), working with other local and regional entities, to provide information and assistance to schools in the area the board is established. SECTION 2. Amends Chapter 61, Education Code, by adding Subchapter T, as follows: SUBCHAPTER T. TECH-PREP EDUCATION Sec. 61.851. DEFINITIONS. Defines "articulation agreement," "board," "junior college," "tech-prep consortium," and "technical college." Sec. 61.852. TECH-PREP PROGRAM. Describes the components of a program of study that is a tech-prep program. Specifies that a tech-prep consortium is encouraged to include four years of secondary education in a tech-prep program, notwithstanding certain conditions. Sec. 61.853. REGIONAL TECH-PREP CONSORTIA: GOVERNING BOARD; DIRECTOR; FISCAL AGENT. Provides that each regional tech-prep consortia is governed by a governing board composed of private and public sector leaders in the ratio agreed to by the consortia participants. Authorizes a consortia to consolidate certain entities to increase efficiency and coordination. Requires the combined entity to maintain and comply with legal requirements involving proper separation of funds. Requires the governing board to determine the policies of the tech-prep consortium in accordance with bylaws. Sets forth bylaw requirements. Requires the governing board to select a director to manage the consortium's affairs, and provides that the director serves at the will of the governing board. Requires the governing board to select a certain entity to act as a fiscal agent and to provide certain services for the consortium. Specifies that the fiscal agent serves at the direction of the governing board and under certain terms. Sec. 61.854. TECH-PREP CONSORTIUM ALLOTMENT. Requires the Texas Higher Education Coordinating Board (THECB) to allot certain money for regional administration according to plans developed to meet certain goals. Requires THECB to allot the money to tech-prep consortia in accordance with a THECB formula, under certain conditions determined by THECB. Requires an eligible tech-prep consortium to submit an application on a THECB prescribed form. Requires the form to address a certain formula. Requires THECB to make a payment to the consortium's fiscal agent, if the consortium has a completed application on file. Sec. 61.855. GRANTS FOR TECH-PREP EDUCATION. Requires THECB to award grants to tech-prep consortia of programs, under certain conditions. Sets forth composition requirements of a tech-prep consortium to be eligible for a grant. Sets forth requirements of a tech-prep program. Requires a tech-prep consortium that receives a grant to use the money to develop and operate a tech-prep program described in Subsection (c). Sets forth authorizations of a tech-prep program. Sec. 61.856. GRANT APPLICATION. Requires each regional tech-prep consortium desiring a grant to submit an application to THECB in a THECB prescribed manner. Sets forth requirements for an application. Requires THECB to approve the application if it meets certain requirements. Requires THECB to give special consideration to an application for certain tech-prep programs. Requires THECB to ensure that there is an equal distribution of assistance between urban and regional consortium participants, in the process of awarding grants. Sec. 61.857. REPORT; REVIEW OF FIVE-YEAR PLAN. Requires each regional techprep consortium that receives a grant to prepare and submit an annual program effectiveness report to THECB. Sets forth requirements of the report. Requires the consortium to review the plan and make necessary changes after the second year of the five-year plan required under Section 61.856(b)(1), Labor Code. SECTION 3. Amends Section 39.051(b), Education Code, to include certain articulated postsecondary degree programs and certified workforce training programs in a list of required performance indicators. Makes a conforming change. SECTION 4. (a) Effective date: September 1, 1999. (b) Provides that the validity of a workforce training program is not affected by the change in law made by this Act. SECTION 5. Emergency clause.