SRC-DBM C.S.S.B. 1027 76(R) BILL ANALYSIS Senate Research CenterC.S.S.B. 1027 76R14125 ESH-FBy: Lucio Education 4/29/1999 Committee Report (Substituted) DIGEST Currently, there are more than 350,000 high-tech jobs in the State of Texas. There are more high-tech jobs in the State of Texas than the total jobs in oil, gas, refineries, and related industries. In 1996, hightech workers made 7.7 percent of the wages in Texas, but represented only 4 percent of the total workforce. The average wage for a high-tech worker is approximately $45,000 per year, whereas, the average non-high-tech worker earns approximately $30,000 per year. Large companies that consider relocating to Texas ask two questions: how many 18 to 24 year olds live in Texas and what is the education and training level of those 18 to 24 year olds? Texas has a large youthful population which continues to grow; however, the education and training of the 18 to 24 year olds is dependent upon Texas' approach to workforce education. Tech-prep consortia are an effective means for strategic planning, implementation, and evaluation of workforce education programs. Tech-prep has been operating effectively in Texas since 1991, but the legislature has never enacted Tech-prep policies. C.S.S.B. 1027 would set forth provisions for establishing tech-prep education. PURPOSE As proposed, C.S.S.B. 1027 sets forth provisions for establishing tech-prep education. 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 Chapter 61, Education Code, by adding Subchapter T, as follows: SUBCHAPTER T. TECH-PREP EDUCATION Sec. 61.851. DEFINITIONS. Defines "articulation agreement," "junior college," "tech-prep consortium," and "technical college." Sec. 61.852. TECH-PREP PROGRAM. Sets forth the contents of a tech-prep program of study, including it being a program of study which leads to an associate degree, a two-year postsecondary certificate, or a postsecondary two-year apprenticeship with a provision if applicable for the student to continue toward the completion of a baccalaureate degree. Provides that, notwithstanding Subsection (a) (1), a tech-prep consortium is encouraged to include four years of secondary education in a tech-prep program. Sec. 61.853. REGIONAL TECH-PREP CONSORTIA: GOVERNING BOARD; DIRECTOR; FISCAL AGENT. Provides that each regional tech-prep consortium is governed by a governing board composed of private sector and public sector leaders in the ratio agreed to by the participants in the consortium. Authorizes a tech-prep consortium, at the option of the participants in the consortium, to consolidate board members and staff with an eligible local entity to achieve administrative efficiencies and operational coordination, but the combined entity must maintain proper segregation of funds and must otherwise comply with all applicable legal requirements involving the use of the segregated funds. Requires a governing board to determine the policies of the tech-prep consortium in accordance with the consortium's written bylaws. Requires the bylaws to specify the major relationships, decision-making and operational processes, and other significant policies of the consortium, including the procedures for filling vacancies on the governing board. Requires the governing board to select a consortium director to manage the consortium's affairs. Provides that the consortium director serves at the will of the governing board. Requires the governing board to select a community college, junior college, technical college, university, regional education service center, independent school district, or other eligible entity to act as the tech-prep consortium's fiscal agent and to provide human resource and business office services for the consortium. Provides that the fiscal agent serves at the direction of the governing board and under the terms of an agreement between the governing board and the fiscal agent. Sec. 61.854. TECH-PREP CONSORTIUM ALLOTMENT. Requires, in each fiscal year, the Texas Higher Education Coordinating Board (board), as the agent of the Texas Education Agency, to allot the federal tech-prep implementation money this state receives to the regional tech-prep consortia for regional administration according to regionally developed plans designed to meet federal, state, and regional goals. Requires the board to allot the money to tech-prep consortia in accordance with a formula adopted by the board, after a public hearing and in consultation with interested state entities and tech-prep consortia that addresses the differing needs of consortia due to certain factors. Requires an eligible tech-prep consortium that desires assistance under this section to submit an application to the board on a form prescribed by the division for that purpose. Requires the form to address the formula adopted by the board under Subsection (a). Requires the board to make a payment in the amount of the consortium's allotment under Subsection (a) to the consortium's fiscal agent, if a tech-prep consortium has a completed application on file under Subsection (b). Sec. 61.855. GRANTS FOR TECH-PREP EDUCATION. Requires the board, in accordance with this subchapter and with a formula adopted by the board, to award grants to tech-prep consortia for tech-prep programs described by Subsection (d). Sets forth the grant eligibility criteria for a tech-prep consortium. Authorizes a tech-prep consortium, in addition to entities described by Subsection (b), to include an institution of higher education that awards a baccalaureated degree; and employers or labor organizations. Sets forth the required composition of a tech-prep program. Requires a tech-prep consortium that receives a grant under this section to use the money awarded to develop and operate a tech-prep program described in Subsection (c). Sets forth what a tech-prep program is authorized to provide, acquire, and establish. Sec. 61.856. GRANT APPLICATION. Requires each regional tech-prep consortium that desires to obtain a grant under this subchapter to submit an application to the division at the time and in the manner the division prescribes. Sets forth what an application is required to include and show. Requires the board to approve an application if the application meets the requirements of this section and Section 61.854(b). Sets forth special considerations required to be given to an application for certain tech-programs. Requires the board, in awarding grants under this chapter, to ensure an equitable distribution of assistance between urban and regional consortium participants. Sec. 61.857. REPORT; REVIEW OF FIVE-YEAR PLAN. Requires each regional tech-prep consortium that receives a grant under this subchapter to annually prepare and submit a written report on the effectiveness of the tech-prep programs for which the consortium received assistance to the board. Requires the report to include a description of the manner in which the consortium awarded any subgrants in the region served by the consortium. Requires the consortium to review the plan and make any changes necessary after the second year of the fiveyear plan required under Section 61.856(b)(1). SECTION 2.Effective date: September 1, 1999. SECTION 3.Emergency clause. SUMMARY OF COMMITTEE CHANGES SECTION 1. Amends Section 61.851, Chapter 61T, Education Code, by deleting the proposed definition of "division." Amends Section 61.852, Chapter 61T, Education Code, to set forth the contents of a tech-prep program of study, including it being a program of study which leads to an associate degree, a two-year postsecondary certificate, or a postsecondary two-year apprenticeship with a provision if applicable for the student to continue toward the completion of a baccalaureate degree. Amends Section 61.853, Chapter 61T, Education Code, to authorize a tech-prep consortium, at the option of the participants in the consortium, to consolidate board members and staff with an eligible local entity to achieve administrative efficiencies and operational coordination, but the combined entity must maintain proper segregation of funds and must otherwise comply with all applicable legal requirements involving the use of the segregated funds. Requires a governing board to determine the policies of the tech-prep consortium in accordance with the consortium's written bylaws. Requires the bylaws to specify the major relationships, decisionmaking and operational processes, and other significant policies of the consortium, including the procedures for filling vacancies on the governing board. Requires the governing board to select a community college, junior college, technical college, university, regional education service center, independent school district, or other eligible entity to act as the tech-prep consortium's fiscal agent and to provide human resource and business office services for the consortium. Deletes text requiring the governing board to select a council of governments or private industry council to act as the tech-prep consortium's fiscal agent and to provide human resource and business office services for the consortium. Amends Section 61.854, Chapter 61T, Education Code, to require, in each fiscal year, the Texas Higher Education Coordinating Board (board), rather than the Community and Technical Colleges Division (division), as the agent of the Texas Education Agency, to allot the federal tech-prep implementation money this state receives to the regional tech-prep consortia for regional administration according to regionally developed plans designed to meet federal, state, and regional goals. Requires the board, rather than the division, to allot the money to tech-prep consortia in accordance with a formula adopted by the board, after a public hearing and in consultation with interested state entities and tech-prep consortia that addresses the differing needs of consortia due to certain factors. Requires an eligible tech-prep consortium that desires assistance under this section to submit an application to the board, rather than division, on a form prescribed by the division for that purpose. Requires the form to address the formula adopted by the board under Subsection (a). Makes nonsubstantive changes. Amends Section 61.855, Chapter 61T, Education Code, to require the board, in accordance with this subchapter and with a formula adopted by the board, to award grants to tech-prep consortia for tech-prep programs described by Subsection (d), rather than Subsection (c). Authorizes a tech-prep consortium, in addition to entities described by Subsection (b), to include an institution of higher education that awards a baccalaureate degree; and employer or labor organizations. Sets forth the required composition of a tech-prep program, it being implemented under an articulation agreement between the participants in the tech-prep consortium; including in-service training for teachers that is designed to ensure that teachers and administrators stay current with the needs, expectations, and methods of business and all aspects of an industry, rather than remain informed regarding the current needs, expectations, and methods of business and all aspects of an industry; and including training programs for counselors designed to enable counselors to more effectively stay current with the needs, expectations, and methods of all aspects of an industry. Redesignates proposed Subsection (c) as (d). Amends Section 61.856, Chapter 61T, Education Code, to require the board, rather than division, to approve an application if the application meets the requirements of this section and Section 61.854(b). Requires the board, rather than division, in awarding grants under this chapter, to ensure an equitable distribution of assistance between urban and regional consortium participants. Amends Section 61.857, Chapter 61T, Education Code, to require each regional tech-prep consortium that receives a grant under this subchapter to annually prepare and submit a written report on the effectiveness of the tech-prep programs for which the consortium received assistance to the board, rather than division. Deletes proposed Section 61.858, Chapter 61T, Education Code.