HBA-NLM C.S.H.B. 3431 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3431 By: Delisi Economic Development 4/28/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE With the creation of the Texas Council on Workforce and Economic Competitiveness (council), created as part of the job training development plan, five state-wide advisory councils and boards associated with various workforce programs were consolidated under the council. The council is charged with developing a single strategic plan for workforce development, making planning and policy recommendations, and evaluating the effectiveness of all workforce programs in the state. Currently, the council is required to report to the governor, but is not required by law to report to the legislature. C.S.H.B. 3431 includes the legislature as a party to whom the council is required to report certain state plans, policies, and vocational education plans, and as a party to whom the council is required to report a strategic plan for the budgeting and operation of the welfare to work transition system. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2308.004, Government Code, to provide that a program year under this chapter begins on July 1 and ends on June 30 unless otherwise specified under appropriate state or federal law. SECTION 2. Amends Subchapter A, Chapter 2308, Government Code, by adding Section 2308.006, as follows: Sec. 2308.006. APPLICATION OF PRIOR LAW. (a) Prohibits the Council on Workforce and Economic Competitiveness (council) from operating under that change in law, if a change in law made by H.B. 3431, Acts of the 76th Legislature, Regular Session, 1999, would have the effect of invalidating an exemption granted under the Workforce Investment Act of 1998 (Pub. L. No.105-220). Requires the council to operate under the law as it existed before the effective date of this Act. (b) Provides that a change in law described by this section does not affect other related provisions and applications of statute and requires those provisions and applications to be given effect. SECTION 3. Amends Section 2308.051(a), Government Code, to specify that the council acts as a state workforce investment board under the Workforce Investment Act of 1998 (Pub. L. No.105220). SECTION 4. Amends Section 2308.052(b), Government Code, to include the presiding officer of the policy advisory board of the Texas Department of Economic Development, rather than Commerce, among the council's composition. SECTION 5. Amends Section 2308.101, Government Code, to require the council to identify and recommend to the governor incentives to encourage the consolidation, on a regional labor market basis, of local boards, councils, committees, and service delivery areas authorized under the Job Training Partnership Act (29 U.S.C. Section 1501 et seq.) or other federal workforce legislation; review plans for local workforce development, rather than training services; report periodically to the governor and the legislature; and provide annual reports to the governor and the legislature, including an annual report analyzing work development programs that focus on welfare to work initiatives. Makes conforming and nonsubstantive changes. SECTION 6. Amends Section 2308.102(a), Government Code, to include the legislature as a party to whom the council is required to report certain state plans, policies, and vocational education plans as provided by the existing provisions. Makes conforming and nonsubstantive changes. SECTION 7. Amends Sections 2308.104(a) and (c), Government Code, as follows: (a) Includes the legislature as a party to whom the council is required to report a strategic plan for the budgeting and operation of the welfare to work transition system, in addition to all careers and welfare to work components. Requires the council to annually report to the governor and the legislature on the implementation of the strategic plan. (c) Makes a conforming and nonsubstantive change. SECTION 8. Amends Section 2308.151, Government Code, as follows: Sec. 2308.151. New title: ESTABLISHMENT OF EVALUATION SYSTEM; FUNDING. Requires the agencies represented on the council to fund the maintenance and operation of the evaluation system by using funds available to the agencies for evaluation of each agency's workforce development programs. Makes a conforming and nonsubstantive change. SECTION 9. Amends Sections 2308.153(b) and (c), Government Code, to provide that the evaluation data in the system must include other appropriate factors, including public welfare dependency. Makes a conforming change. SECTION 10. Amends Section 2308.154, Government Code, to make a conforming and nonsubstantive change. SECTION 11. Amends Section 2308.156, Government Code, to require the council and each local workforce development board to use the information under this subchapter and other information to determine whether a specific workforce training and services program funded by the local board is effective and whether to continue the training and services program. SECTION 12. Amends Section 2308.203, Government Code, to require a state agency that is responsible for the administration of human resources or workforce development to implement a recommendation under this subchapter. Requires a state agency to notify the governor, the executive director, and the presiding officer of the council within 30 days if the agency determines that a recommendation cannot be implemented. SECTION 13. Amends Section 2308.402, Government Code, to require the board to validate and recognize nationally established skill standards. Requires the skill standards board to report periodically to the governor, and provide annual reports to the governor, the division, and the legislature. SECTION 14. Repealer: Subchapter G (Legislative Oversight), Chapter 301, Labor Code. SECTION 15. Effective date: September 1, 1999. SECTION 16. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3431 modifies the original by adding new SECTIONS 1-5, and 8-14, as follows: SECTION 1. Amends Section 2308.004, Government Code, to provide that a program year under this chapter begins on July 1 and ends on June 30 unless otherwise specified under appropriate state or federal law. SECTION 2. Amends Subchapter A, Chapter 2308, Government Code, by adding Section 2308.006, as follows: Sec. 2308.006. APPLICATION OF PRIOR LAW. (a) Prohibits the Council on Workforce and Economic Competitiveness (council) from operating under that change in law, if a change in law made by H.B. 3431, Acts of the 76th Legislature, Regular Session, 1999, would have the effect of invalidating an exemption granted under the Workforce Investment Act of 1998 (Pub. L. No.105-220). Requires the council to operate under the law as it existed before the effective date of this Act. (b) Provides that a change in law described by this section does not affect other related provisions and applications of statute and requires those provisions and applications to be given effect. SECTION 3. Amends Section 2308.051(a), Government Code, to specify that the council acts as a state workforce investment board under the Workforce Investment Act of 1998 (Pub. L. No.105-220). SECTION 4. Amends Section 2308.052(b), Government Code, to include the presiding officer of the policy advisory board of the Texas Department of Economic Development, rather than Commerce, among the council's composition. SECTION 5. Amends Section 2308.101, Government Code, to require the council to identify and recommend to the governor incentives to encourage the consolidation, on a regional labor market basis, of local boards, councils, committees, and service delivery areas authorized under the Job Training Partnership Act (29 U.S.C. Section 1501 et seq.) or other federal workforce legislation; review plans for local workforce development, rather than training services; report periodically to the governor and the legislature; and provide annual reports to the governor and the legislature, including an annual report analyzing work development programs that focus on welfare to work initiatives. Makes conforming and nonsubstantive changes. SECTION 8. Amends Section 2308.151, Government Code, as follows: Sec. 2308.151. New title: ESTABLISHMENT OF EVALUATION SYSTEM; FUNDING. Requires the agencies represented on the council to fund the maintenance and operation of the evaluation system by using funds available to the agencies for evaluation of each agency's workforce development programs. Makes a conforming and nonsubstantive change. SECTION 9. Amends Sections 2308.153(b) and (c), Government Code, to provide that the evaluation data in the system must include other appropriate factors, including public welfare dependency. Makes a conforming change. SECTION 10. Amends Section 2308.154, Government Code, to make a conforming and nonsubstantive change. SECTION 11. Amends Section 2308.156, Government Code, to require the council and each local workforce development board to use the information under this subchapter and other information to determine whether a specific workforce training and services program funded by the local board is effective and whether to continue the training and services program. SECTION 12. Amends Section 2308.203, Government Code, to require a state agency that is responsible for the administration of human resources or workforce development to implement a recommendation under this subchapter. Requires a state agency to notify the governor, the executive director, and the presiding officer of the council within 30 days if the agency determines that a recommendation cannot be implemented. SECTION 13. Amends Section 2308.402, Government Code, to require the board to validate and recognize nationally established skill standards. Requires the skill standards board to report periodically to the governor, and provide annual reports to the governor, the division, and the legislature. SECTION 14. Repealer: Subchapter G (Legislative Oversight), Chapter 301, Labor Code. C.S.H.B. 3431 redesignates SECTION 1 (Section 2308.102(a), Government Code) of the original to SECTION 6 in the substitute. The substitute requires the council to assume the duty to report to the legislature, participate directly in the development of the state plan for career technology; recommend the plan to the Texas Education Agency, rather than the State Board of Education, the Texas Higher Education Coordinating Board, and the governor; and make recommendations to the Texas Workforce Commission, rather than the Texas Employment Commission. C.S.H.B. 3431 redesignates SECTION 2 (Section 2308.104, Government Code) of the original to SECTION 7 in the substitute. The substitute further amends Subsection (a) to include the legislature as a party to whom the council is required to report a strategic plan for the budgeting and operation of the welfare to work transition system. The original bill included the legislature as a party to whom the council is required to recommend a strategic plan for the budgeting and operation of the welfare to work transition programs, in addition to all workforce development programs. The substitute includes an amendment to Subsection (c) of this section to make conforming changes. C.S.H.B. 3431 redesignates SECTIONS 3 and 4 (effective date, emergency clause) of the original to new SECTIONS 15 and 16 in the substitute.