1-1                                   AN ACT
 1-2     relating to the establishment of voluntary workforce training
 1-3     programs for certain students.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle B, Title 4, Labor Code, is amended by
 1-6     adding Chapter 311 to read as follows:
 1-7       CHAPTER 311.  VOLUNTARY WORKFORCE TRAINING FOR CERTAIN STUDENTS
 1-8           Sec. 311.001.  DEFINITIONS.  In this chapter:
 1-9                 (1)  "Agency" means the Texas Education Agency.
1-10                 (2)  "Certified program" means a career and technology
1-11     secondary and postsecondary education program conducted under an
1-12     agreement as described by Section 311.003 or a voluntary program
1-13     certified by the agency in conjunction with the commission as
1-14     meeting the standards prescribed by Section 311.002, and that:
1-15                       (A)  integrates a secondary school academic
1-16     curriculum with private sector workplace training and a
1-17     postsecondary curriculum;
1-18                       (B)  places students in job internships;
1-19                       (C)  is designed to continue into postsecondary
1-20     education and lead to the participant earning an associate's degree
1-21     or a bachelor's degree;
1-22                       (D)  will result in teaching new skills and
1-23     adding value to the wage-earning potential of participants and
1-24     increasing a participant's long-term employability in this state;
 2-1     and
 2-2                       (E)  meets recognized or accepted industry
 2-3     standards.
 2-4                 (3)  "Participant" means a person at least 16 years of
 2-5     age who is enrolled in a public or private secondary or
 2-6     postsecondary school, or an equivalent program, and who began to
 2-7     voluntarily participate in a certified voluntary workforce training
 2-8     program as part of secondary school education.
 2-9                 (4)  "Sponsor" means any person operating a certified
2-10     program and in whose name the program is registered.
2-11           Sec. 311.002.  CERTIFICATION STANDARDS.  To be eligible for
2-12     certification by the agency under this chapter, a program must:
2-13                 (1)  be conducted under an organized, written plan
2-14     embodying the terms and conditions of employment, job training,
2-15     classroom instruction, and supervision of participants and be
2-16     subscribed to by a sponsor who has undertaken to carry out the
2-17     program;
2-18                 (2)  comply with all state and federal laws, including
2-19     laws pertaining to fair labor standards and workplace health and
2-20     safety;
2-21                 (3)  comply with recognized industry standards
2-22     applicable to the program in which the participant is engaged; and
2-23                 (4)  include an agreement by the employer to assign an
2-24     employee to serve as a mentor for the participant.
2-25           Sec. 311.003.  CERTIFIED PROGRAM AGREEMENTS.  (a)  A
2-26     certified program must be conducted under a signed written
2-27     agreement between each participant and the employer.  The agreement
 3-1     may include the following:
 3-2                 (1)  the name and signature of the participant, the
 3-3     sponsor, and the employer, and a parent or guardian of the
 3-4     participant if the participant is under 18 years of age;
 3-5                 (2)  a description of the career field in which the
 3-6     participant is to be trained, the academic and technical skills to
 3-7     be attained, and the beginning date and duration of the broad-based
 3-8     training; and
 3-9                 (3)  the employer's agreement to provide paid
3-10     employment, at a base wage not less than the minimum wage, for the
3-11     participant during the participant's junior and senior years in
3-12     high school and after the participant's first year of postsecondary
3-13     education.
3-14           (b)  A participant's time spent in a program under Subsection
3-15     (a) may not exceed 15 hours a week, without regard to whether the
3-16     participant is paid for the time.
3-17           (c)  A participant may, but is not required to, enter into a
3-18     postsecondary education agreement with the participant's employer.
3-19     An agreement under this subsection must include:
3-20                 (1)  the participant's agreement to pay half of the
3-21     participant's wages to be held in trust to be applied toward the
3-22     participant's postsecondary education and the employer's agreement
3-23     to pay into the trust an additional amount equal to the amount paid
3-24     by the participant;
3-25                 (2)  the participant's agreement to work for the
3-26     employer for at least two years following the date of completion of
3-27     the participant's postsecondary education;
 4-1                 (3)  the employer's agreement to pay the participant
 4-2     during the period described by Subdivision (2) at least the
 4-3     prevailing wage for employees having a similar education or license
 4-4     and performing similar work and to provide other employee benefits
 4-5     to which employees performing similar work are entitled; and
 4-6                 (4)  the participant's agreement to reimburse the
 4-7     employer if the participant fails to perform the two years of
 4-8     employment described by Subdivision (2) for the employer's
 4-9     contribution to the trust established under Subdivision (1), plus
4-10     interest at the prime interest rate at the time the participant
4-11     defaults on the agreement.
4-12           (d)  If a participant decides not to continue in the program
4-13     before beginning the participant's postsecondary education, the
4-14     participant and employer each shall be refunded, not later than the
4-15     30th day after the last date of participation in the program, their
4-16     respective contributions to the trust established under Subsection
4-17     (c)(1) and a pro rata share of the interest earned on the money in
4-18     the trust.
4-19           (e)  The money held in trust under Subsection (c)(1) must be
4-20     held in trust for the benefit of the participant under rules
4-21     adopted by the agency.  Payment into a trust approved under 29
4-22     U.S.C. Section 1103 for the benefit of the participant satisfies
4-23     the requirement of this subsection.  The fund must be specified in
4-24     the agreement.
4-25           (f)  An employer who enters into an agreement under this
4-26     section may not retain participants solely to replace the
4-27     employer's current employees.
 5-1           Sec. 311.004.  RULEMAKING.  (a)  The agency and commission
 5-2     shall adopt rules as necessary to administer each entity's duties
 5-3     under this chapter.  To the extent possible, the agency and
 5-4     commission shall cooperate with each other in adopting rules so
 5-5     that all rules adopted under this chapter are consistent  and
 5-6     easily administered.
 5-7           (b)  Rules adopted under this section must include a
 5-8     requirement that participation in a certified program under this
 5-9     chapter is voluntary.
5-10           Sec. 311.005.  COMMISSION DUTIES; LOCAL WORKFORCE DEVELOPMENT
5-11     BOARDS.  (a)  The commission shall:
5-12                 (1)  administer its responsibilities under this chapter
5-13     as part of the commission's workforce development system;
5-14                 (2)  cooperate with other state agencies as
5-15     appropriate; and
5-16                 (3)  provide information and technical assistance to
5-17     the agency, secondary and postsecondary schools, employers, local
5-18     workforce development boards, and other entities.
5-19           (b)  A local workforce development board, working in
5-20     partnership with other local and regional entities, shall provide
5-21     to secondary and postsecondary schools and employers in the area in
5-22     which the board is established information and technical assistance
5-23     as necessary to implement this chapter.
5-24           SECTION 2.  Chapter 61, Education Code, is amended by adding
5-25     Subchapter T to read as follows:
5-26                     SUBCHAPTER T.  TECH-PREP EDUCATION
5-27           Sec. 61.851.  DEFINITIONS.  In this subchapter:
 6-1                 (1)  "Articulation agreement" means a written
 6-2     commitment between the participants in a tech-prep consortium to a
 6-3     program designed to provide students with a nonduplicative sequence
 6-4     of progressive achievement leading to degrees or certificates in a
 6-5     tech-prep education program.
 6-6                 (2)  "Junior college" means an institution of higher
 6-7     education that awards associate degrees as provided by Chapter 130.
 6-8                 (3)  "Tech-prep consortium" means a regional
 6-9     collaboration of school districts, institutions of higher
6-10     education, businesses, labor organizations, and other participants
6-11     to work together to effectively implement a regional tech-prep
6-12     program.
6-13                 (4)  "Technical college" means a campus of the Texas
6-14     State Technical College System established under Chapter 135.
6-15           Sec. 61.852.  TECH-PREP PROGRAM.  (a)  A tech-prep program is
6-16     a program of study that:
6-17                 (1)  combines at least two years of secondary education
6-18     with at least two years of postsecondary education in a
6-19     nonduplicative, sequential course of study based on the recommended
6-20     high school program adopted by the State Board of Education under
6-21     Section 28.025(a);
6-22                 (2)  integrates academic instruction and vocational and
6-23     technical instruction;
6-24                 (3)  uses work-based and worksite learning where
6-25     available  and appropriate;
6-26                 (4)  provides technical preparation in a career field
6-27     such as engineering technology, applied science, a mechanical,
 7-1     industrial, or practical art or trade, agriculture, health
 7-2     occupations, business, or applied economics;
 7-3                 (5)  builds student competence in mathematics, science,
 7-4     reading, writing, communications, economics, and workplace skills
 7-5     through  applied, contextual academics and integrated instruction
 7-6     in a coherent sequence of courses;
 7-7                 (6)  leads to an associate degree, two-year
 7-8     postsecondary  certificate, or postsecondary two-year
 7-9     apprenticeship with provisions, to the extent applicable, for
7-10     students to continue toward completion of a baccalaureate degree;
7-11     and
7-12                 (7)  leads to placement in appropriate employment or to
7-13     further education.
7-14           (b)  Notwithstanding Subsection (a)(1), a tech-prep
7-15     consortium is encouraged to include four years of secondary
7-16     education in a tech-prep program.
7-17           Sec. 61.853.  REGIONAL TECH-PREP CONSORTIA:  GOVERNING BOARD;
7-18     DIRECTOR; FISCAL AGENT.  (a)  Each regional tech-prep consortium is
7-19     governed by a governing board composed of private sector and public
7-20     sector leaders in the ratio agreed to by the participants in the
7-21     consortium.  A consortium at local option may consolidate governing
7-22     board members and staff with an eligible local entity to achieve
7-23     administrative efficiencies and operational coordination.  The
7-24     combined entity shall maintain a proper separation of funds and
7-25     comply with all applicable legal requirements involving the use of
7-26     separate funds.
7-27           (b)  The governing board shall determine the policies of the
 8-1     tech-prep consortium in accordance with the consortium's written
 8-2     bylaws.  The bylaws must specify the major relationships,
 8-3     decision-making and operational processes, and other significant
 8-4     policies of the consortium, including the procedures for filling
 8-5     vacancies on the governing board.
 8-6           (c)  According to the terms of a written agreement between a
 8-7     governing board and the fiscal agent, a consortium director shall
 8-8     be selected.
 8-9           (d)  The governing board shall select a community college,
8-10     junior college, technical college, university, regional education
8-11     service center, independent school district, or other eligible
8-12     entity to act as the tech-prep consortium's fiscal agent and to
8-13     provide human resource and business office services for the
8-14     consortium.  The fiscal agent serves under the terms of a written
8-15     agreement between the governing board and the fiscal agent.
8-16           Sec. 61.854.  TECH-PREP CONSORTIUM ALLOTMENT.  (a)  In each
8-17     fiscal year, the board, as the agent of the Texas Education Agency,
8-18     shall allot the federal tech-prep implementation money this state
8-19     receives to the regional tech-prep consortia for regional
8-20     administration according to regionally developed plans designed to
8-21     meet federal, state, and regional goals.  The board shall allot the
8-22     money to tech-prep consortia in accordance with a formula adopted
8-23     by the board, after a public hearing and in consultation with
8-24     interested state entities and local consortia, that addresses the
8-25     differing needs of the consortia due to urban or rural populations,
8-26     special populations, number of tech-prep programs and students, and
8-27     other factors determined by the board.
 9-1           (b)  An eligible tech-prep consortium that desires assistance
 9-2     under this section must submit an application to the board on a
 9-3     form prescribed by the board for that purpose.  The form must
 9-4     address the formula adopted by the board under Subsection (a).
 9-5           (c)  If a tech-prep consortium has a completed application on
 9-6     file under Subsection (b), the board shall make a payment in the
 9-7     amount of the consortium's allotment under Subsection (a) to the
 9-8     consortium's fiscal agent.
 9-9           Sec. 61.855.  GRANTS FOR TECH-PREP EDUCATION.  (a)  From
9-10     amounts made available under Section 61.854, the board, in
9-11     accordance with this subchapter and with a formula adopted by the
9-12     board, shall award grants to tech-prep consortia for tech-prep
9-13     programs described by Subsection (d).
9-14           (b)  To be eligible for a grant, a tech-prep consortium must
9-15     be composed of:
9-16                 (1)  a local educational agency, intermediate
9-17     educational agency, area vocational and technical education school
9-18     serving secondary school students, or a secondary school funded by
9-19     the Bureau of Indian Affairs; and
9-20                 (2)  one of the following institutions of higher
9-21     education:
9-22                       (A)  a nonprofit institution of higher education
9-23     that offers:
9-24                             (i)  a two-year associate degree program or
9-25     a two-year certificate program and that is qualified as a junior
9-26     college or technical college to award associate degrees under
9-27     Chapter 130 or 135, including an institution receiving assistance
 10-1    under the Tribally Controlled Community College Assistance Act of
 10-2    1978 (25 U.S.C. Section 1801 et seq.) and its subsequent amendments
 10-3    as a tribally controlled postsecondary vocational or technical
 10-4    institution; or
 10-5                            (ii)  a two-year apprenticeship program
 10-6    that follows secondary instruction, if the nonprofit institution of
 10-7    higher education is not prohibited from receiving assistance under
 10-8    Part B, Title IV, of the Higher Education Act of 1965 (20 U.S.C.
 10-9    Section 1071 et seq.) and its subsequent amendments as provided by
10-10    Section 435(a) of that Act (20 U.S.C. Section 1085(a)) and its
10-11    subsequent amendments; or
10-12                      (B)  a proprietary institution of higher
10-13    education that offers a two-year associate degree program and that:
10-14                            (i)  is qualified as an institution of
10-15    higher education under Section 102 of the Higher Education Act of
10-16    1965 (20 U.S.C. Section 1002) and its subsequent amendments; and
10-17                            (ii)  is not subject to a default
10-18    management agreement plan required by the United States secretary
10-19    of education.
10-20          (c)  In addition to entities described by Subsection (b), a
10-21    tech-prep consortium may include:
10-22                (1)  an institution of higher education that awards a
10-23    baccalaureate degree; and
10-24                (2)  employers or labor organizations.
10-25          (d)  A tech-prep program must:
10-26                (1)  be implemented under an articulation agreement
10-27    between the participants in the consortium;
 11-1                (2)  consist of two to four years of secondary school
 11-2    preceding graduation and:
 11-3                      (A)  two or more years of higher education; or
 11-4                      (B)  two or more years of apprenticeship
 11-5    following secondary instruction;
 11-6                (3)  have a common core of required proficiency based
 11-7    on the recommended high school program adopted by the State Board
 11-8    of Education under  Section 28.025(a), with proficiencies in
 11-9    mathematics, science, reading, writing, communications, and
11-10    technologies designed to lead to an associate's degree or
11-11    postsecondary certificate in a specific career field;
11-12                (4)  include the development of tech-prep program
11-13    curricula for both secondary and postsecondary participants in the
11-14    consortium that:
11-15                      (A)  meets academic standards developed by the
11-16    state;
11-17                      (B)  links secondary schools and two-year
11-18    postsecondary institutions, and, if practicable, four-year
11-19    institutions of higher education through nonduplicative sequences
11-20    of courses in career fields, including the investigation of
11-21    opportunities for tech-prep students to enroll concurrently in
11-22    secondary and postsecondary course work;
11-23                      (C)  uses, if appropriate and available,
11-24    work-based or worksite learning in conjunction with business and
11-25    all aspects of an industry; and
11-26                      (D)  uses educational technology and distance
11-27    learning, as appropriate, to involve each consortium participant
 12-1    more fully in the  development and operation of programs;
 12-2                (5)  include in-service training for teachers that:
 12-3                      (A)  is designed to train vocational and
 12-4    technical teachers to effectively implement tech-prep programs;
 12-5                      (B)  provides for joint training for teachers in
 12-6    the tech-prep consortium;
 12-7                      (C)  is designed to ensure that teachers and
 12-8    administrators stay current with the needs, expectations, and
 12-9    methods of business and of all aspects of an industry;
12-10                      (D)  focuses on training postsecondary education
12-11    faculty in the use of contextual and applied curricula and
12-12    instruction; and
12-13                      (E)  provides training in the use and application
12-14    of technology;
12-15                (6)  include training programs for counselors designed
12-16    to enable counselors to more effectively:
12-17                      (A)  provide information to students regarding
12-18    tech-prep programs;
12-19                      (B)  support student progress in completing
12-20    tech-prep programs;
12-21                      (C)  provide information on related employment
12-22    opportunities;
12-23                      (D)  ensure that tech-prep students are placed in
12-24    appropriate employment; and
12-25                      (E)  stay current with the needs, expectations,
12-26    and methods of business and of all aspects of an industry;
12-27                (7)  provide equal access to the full range of
 13-1    tech-prep programs for individuals who are members of special
 13-2    populations, including by the development of tech-prep program
 13-3    services appropriate to the needs of special populations; and
 13-4                (8)  provide for preparatory services that assist
 13-5    participants in tech-prep programs.
 13-6          (e)  A tech-prep consortium that receives a grant under this
 13-7    section must use the money awarded to develop and operate a
 13-8    tech-prep program described in Subsection (d).
 13-9          (f)  A tech-prep program may:
13-10                (1)  provide for the acquisition of tech-prep program
13-11    equipment;
13-12                (2)  acquire technical assistance from state or local
13-13    entities that have designed, established, and operated tech-prep
13-14    programs that have effectively used educational technology and
13-15    distance learning to deliver curricula and services and to develop
13-16    an articulation agreement; and
13-17                (3)  establish articulation agreements with
13-18    institutions of higher education, labor organizations, or
13-19    businesses located in or out of the region served by the tech-prep
13-20    consortium, especially with regard to using distance learning and
13-21    educational technology to provide for the delivery of services and
13-22    programs.
13-23          Sec. 61.856.  GRANT APPLICATION.  (a)  Each regional
13-24    tech-prep consortium that desires to obtain a grant under this
13-25    subchapter must submit an application to the board at the time and
13-26    in the manner the board prescribes.
13-27          (b)  An application under this section must:
 14-1                (1)  contain a five-year plan for the development and
 14-2    implementation of tech-prep programs;
 14-3                (2)  show that the application has been approved by the
 14-4    tech-prep consortium's governing board; and
 14-5                (3)  show that the entity selected as the consortium's
 14-6    fiscal agent has agreed to serve in that capacity.
 14-7          (c)  The board shall approve the application if the
 14-8    application meets the requirements of this section and Section
 14-9    61.854(b).
14-10          (d)  The board shall give special consideration to an
14-11    application for a tech-prep program that:
14-12                (1)  provides for effective employment placement
14-13    activities for students or for the transfer of students to
14-14    baccalaureate degree programs;
14-15                (2)  is developed in consultation with business,
14-16    industry, institutions of higher education, and labor
14-17    organizations;
14-18                (3)  effectively addresses the issues of school dropout
14-19    prevention, returning to school after dropping out, and the needs
14-20    of special populations;
14-21                (4)  provides education and training in areas or skills
14-22    in which there are significant workforce shortages, including the
14-23    information technology industry; and
14-24                (5)  demonstrates how tech-prep programs may help
14-25    students achieve high academic and employability competencies.
14-26          (e)  In awarding grants under this subchapter, the board
14-27    shall ensure an equitable distribution of assistance between urban
 15-1    and regional consortium participants.
 15-2          Sec. 61.857.  REPORT; REVIEW OF FIVE-YEAR PLAN.  (a)  Each
 15-3    regional tech-prep consortium that receives a grant under this
 15-4    subchapter shall annually prepare and submit to the board a written
 15-5    report on the effectiveness of the tech-prep programs for which the
 15-6    consortium received assistance.  The report must include a
 15-7    description of the manner in which the consortium awarded any
 15-8    subgrants in the region served by the consortium.
 15-9          (b)  After the second year of the five-year plan required
15-10    under Section 61.856(b)(1), the consortium shall review the plan
15-11    and make any changes necessary.
15-12          SECTION 3.  Section 39.051(b), Education Code, is amended to
15-13    read as follows:
15-14          (b)  Performance on the indicators adopted under this section
15-15    shall be compared to state-established standards.  The degree of
15-16    change from one school year to the next in performance on each
15-17    indicator adopted under this section shall also be considered.  The
15-18    indicators must be based on information that is disaggregated with
15-19    respect to race, ethnicity, sex, and socioeconomic status and must
15-20    include:
15-21                (1)  the results of assessment instruments required
15-22    under Sections 39.023(a) and (c), aggregated by grade level and
15-23    subject area;
15-24                (2)  dropout rates;
15-25                (3)  student attendance rates;
15-26                (4)  the percentage of graduating students who attain
15-27    scores on the secondary exit-level assessment instruments required
 16-1    under Subchapter B that are equivalent to a passing score on the
 16-2    test instrument required under Section 51.306;
 16-3                (5)  the percentage of graduating students who meet the
 16-4    course requirements established for the recommended high school
 16-5    program by State Board of Education rule;
 16-6                (6)  the results of the Scholastic Assessment Test
 16-7    (SAT), [and] the American College Test, articulated postsecondary
 16-8    degree programs described by Section 61.852, and certified
 16-9    workforce training programs described by Chapter 311, Labor Code;
16-10                (7)  the percentage of students taking end-of-course
16-11    assessment instruments adopted under Section 39.023(d);
16-12                (8)  the percentage of students exempted, by exemption
16-13    category, from the assessment program generally applicable under
16-14    this subchapter; and
16-15                (9)  any other indicator the State Board of Education
16-16    adopts.
16-17          SECTION 4.  (a)  This Act takes effect September 1, 1999.
16-18          (b)  The change in law made by this Act does not affect the
16-19    validity of a workforce training program for students in secondary
16-20    and postsecondary education that is in existence on the effective
16-21    date of this Act.
16-22          SECTION 5.  The importance of this legislation and the
16-23    crowded condition of the calendars in both houses create an
16-24    emergency and an imperative public necessity that the
16-25    constitutional rule requiring bills to be read on three several
16-26    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2401 was passed by the House on May
         4, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2401 on May 21, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2401 was passed by the Senate, with
         amendments, on May 19, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor