1-1                                   AN ACT
 1-2     relating to the development and operation of a workforce
 1-3     development system.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 2308.004, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 2308.004.  PROGRAM YEAR.  Under this chapter, a program
 1-8     year begins on July 1 and ends on June 30 unless otherwise
 1-9     specified under appropriate state or federal law.
1-10           SECTION 2.  Subchapter A, Chapter 2308, Government Code, is
1-11     amended by adding Section 2308.006 to read as follows:
1-12           Sec. 2308.006.  APPLICATION OF PRIOR LAW.  (a)  If a change
1-13     in law made by House Bill 3431, Acts of the 76th Legislature,
1-14     Regular Session, 1999, would have the effect of invalidating an
1-15     exemption granted under the Workforce Investment Act of 1998 (Pub.
1-16     L. No. 105-220), the Council on Workforce and Economic
1-17     Competitiveness may not operate under that change in law but,
1-18     instead, shall operate under the law as it existed before the
1-19     effective date of this Act.
1-20           (b)  A change in law described by Subsection (a) of this
1-21     section does not affect other related provisions or applications of
1-22     a statute that can be given effect without that change in law, and
1-23     to this end those other provisions and applications of the statute
1-24     shall be given effect.
 2-1           SECTION 3.  Section 2308.051(a), Government Code, is amended
 2-2     to read as follows:
 2-3           (a)  The council [Council on Workforce and Economic
 2-4     Competitiveness] acts as a state human resource investment council
 2-5     under the Job Training Reform Amendments of 1992 (29 U.S.C. Section
 2-6     1792 et seq.) and as a state workforce investment board under the
 2-7     Workforce Investment Act of 1998 (Pub. L. No. 105-220).
 2-8           SECTION 4.  Section 2308.052(b), Government Code, is amended
 2-9     to read as follows:
2-10           (b)  The council is composed of:
2-11                 (1)  three voting members who represent education, one
2-12     of whom represents local public education, one of whom represents
2-13     public postsecondary education, and one of whom represents
2-14     vocational education;
2-15                 (2)  five voting members who represent organized labor
2-16     appointed from recommendations made by recognized labor
2-17     organizations;
2-18                 (3)  five voting members who represent business and
2-19     industry, including business members serving on local workforce
2-20     development boards or private industry councils;
2-21                 (4)  two voting members who represent community-based
2-22     organizations; and
2-23                 (5)  the following ex officio voting members:
2-24                       (A)  the chair of the State Board of Education;
2-25                       (B)  the chair of the Texas Higher Education
2-26     Coordinating Board;
2-27                       (C)  the presiding officer of the Texas Board of
 3-1     Human Services;
 3-2                       (D)  the presiding officer of the policy advisory
 3-3     board of the Texas Department of Economic Development [Commerce];
 3-4     and
 3-5                       (E)  the chair of the Texas Workforce Commission.
 3-6           SECTION 5.  Section 2308.101, Government Code, is amended to
 3-7     read as follows:
 3-8           Sec. 2308.101.  GENERAL DUTIES.  The council shall:
 3-9                 (1)  promote the development of a well-educated, highly
3-10     skilled workforce in this state;
3-11                 (2)  advocate the development of an integrated
3-12     workforce development system to provide quality services addressing
3-13     the needs of business and workers in this state;
3-14                 (3)  recommend to the governor the designation or
3-15     redesignation of workforce development areas for the local planning
3-16     and delivery of workforce development;
3-17                 (4)  identify and recommend to the governor incentives
3-18     to encourage the consolidation, on a regional labor market basis,
3-19     of:
3-20                       (A)  local boards, councils, and committees; and
3-21                       (B)  service delivery areas authorized under the
3-22     Job Training Partnership Act (29 U.S.C. Section 1501 et seq.)  or
3-23     other federal workforce legislation;
3-24                 (5)  review plans for local workforce development
3-25     [training and services] and make recommendations to the governor
3-26     for approval;
3-27                 (6)  evaluate the effectiveness of the [all] workforce
 4-1     development system;
 4-2                 (7)  use [using] the administrative records of the
 4-3     state's unemployment compensation program and other sources as
 4-4     appropriate in evaluating the workforce development system;
 4-5                 (8)  encourage, [(7)] support, or develop research and
 4-6     demonstration projects designed to develop new programs and
 4-7     approaches to service delivery;
 4-8                 (9) [(8)]  recommend measures to ensure that
 4-9     occupational skills training is:
4-10                       (A)  provided in occupations that are locally in
4-11     demand; and
4-12                       (B)  directed toward high-skill and high-wage
4-13     jobs;
4-14                 (10) [(9)]  monitor the operation of the state's
4-15     workforce development system [programs] to assess the degree to
4-16     which the system is [these programs are] effective in achieving
4-17     state and local goals and objectives;
4-18                 (11) [(10)]  develop and recommend to the governor
4-19     criteria for the establishment of local workforce development
4-20     boards; [and]
4-21                 (12) [(11)]  carry out the federal and state duties and
4-22     responsibilities of advisory councils under applicable federal and
4-23     state workforce development laws or regulations;
4-24                 (13)  report periodically to the governor and the
4-25     legislature; and
4-26                 (14)  provide annual reports to the governor and the
4-27     legislature, including an annual report analyzing work development
 5-1     programs that focus on welfare to work initiatives.
 5-2           SECTION 6.  Section 2308.102(a), Government Code, is amended
 5-3     to read as follows:
 5-4           (a)  The council shall assume the duty to:
 5-5                 (1)  develop, with the assistance of each appropriate
 5-6     state agency, [and] recommend to the governor, and report to the
 5-7     legislature state plans required by applicable federal law in order
 5-8     for the state to receive federal funds;
 5-9                 (2)  make policy recommendations to the governor and
5-10     the legislature on goals and priorities for formula and
5-11     discretionary funds for all applicable programs;
5-12                 (3)  participate directly in the development of the
5-13     state plan for career and technology [master plan for vocational]
5-14     education, as required by law, and recommend the plan to the Texas
5-15     Education Agency [State Board of Education, the Texas Higher
5-16     Education Coordinating Board, and the governor];
5-17                 (4)  ensure that general revenue funds previously
5-18     available to the Texas Literacy Council are used to support the
5-19     efforts of local literacy councils in a manner consistent with the
5-20     state strategic plan;
5-21                 (5)  recommend to the State Board of Vocational
5-22     Education the division of federal funds between secondary and
5-23     postsecondary educational agencies under the Carl D. Perkins
5-24     Vocational and Applied Technology Education Act (20 U.S.C. Section
5-25     2301 et seq.); and
5-26                 (6)  make recommendations to the Texas Workforce
5-27     [Employment] Commission on unemployment insurance issues pertinent
 6-1     to the responsibilities of the council.
 6-2           SECTION 7.  Sections 2308.104(a) and (c), Government Code,
 6-3     are amended to read as follows:
 6-4           (a)  The council shall develop and recommend to the governor
 6-5     and report to the legislature a single strategic plan that
 6-6     establishes the framework for the budgeting and operation of the
 6-7     [all] workforce development system [programs], including school to
 6-8     careers and welfare to work components [transition programs],
 6-9     administered by agencies represented on the council.  The council
6-10     shall annually report to the governor and the legislature on the
6-11     implementation of the strategic plan.
6-12           (c)  The council shall include in the strategic plan goals,
6-13     objectives, and performance measures for the [all] workforce
6-14     development system that involve programs of state agencies that are
6-15     represented on the council.
6-16           SECTION 8.  Section 2308.151, Government Code, is amended to
6-17     read as follows:
6-18           Sec. 2308.151.  ESTABLISHMENT OF EVALUATION SYSTEM; FUNDING.
6-19     (a) The council shall establish and maintain an automated follow-up
6-20     and evaluation system derived from appropriate available
6-21     information, including:
6-22                 (1)  unemployment insurance wage records maintained by
6-23     the Texas Workforce [Employment] Commission; and
6-24                 (2)  student follow-up information available through
6-25     the Texas Higher Education Coordinating Board.
6-26           (b)  The agencies represented on the council shall fund the
6-27     maintenance and operation of the evaluation system by using funds
 7-1     available to the agencies for evaluation of each agency's workforce
 7-2     development programs.
 7-3           SECTION 9.  Sections 2308.153(b) and (c), Government Code,
 7-4     are amended to read as follows:
 7-5           (b)  Evaluation data in the system must include:
 7-6                 (1)  placement rates;
 7-7                 (2)  wages paid;
 7-8                 (3)  retention in employment statistics;
 7-9                 (4)  the number of education and training-related
7-10     placements; and
7-11                 (5)  other appropriate factors, including public
7-12     welfare dependency and the pursuit of additional education.
7-13           (c)  The council may develop a method for collecting
7-14     occupational information to supplement wage record information
7-15     collected by the Texas Workforce [Employment] Commission.  The
7-16     council may request employers, providers, and other appropriate
7-17     sources to provide placement, employment, and earnings information
7-18     to the council.
7-19           SECTION 10.  Section 2308.154, Government Code, is amended to
7-20     read as follows:
7-21           Sec. 2308.154.  ANALYSIS.  At least annually, the council
7-22     shall issue an analysis, by occupation and by the provider of the
7-23     job placement performance, of each workforce development
7-24     [education] program for the previous one-year, three-year, and
7-25     five-year periods to:
7-26                 (1)  each provider of workforce education or workforce
7-27     training and services;
 8-1                 (2)  the Texas Higher Education Coordinating Board for
 8-2     each provider of workforce education approved and administered by
 8-3     the higher education coordinating board;
 8-4                 (3)  each local workforce development board for each
 8-5     provider of workforce training and services within the workforce
 8-6     development area; and
 8-7                 (4)  the division.
 8-8           SECTION 11.  Section 2308.156, Government Code, is amended to
 8-9     read as follows:
8-10           Sec. 2308.156.  USE BY COUNCIL AND LOCAL WORKFORCE
8-11     DEVELOPMENT BOARD.  The council and each local workforce
8-12     development board shall use the information under this subchapter
8-13     and other information to determine whether a specific workforce
8-14     training and services program administered by or funded by the
8-15     local board is effective and whether to continue the training and
8-16     services program.
8-17           SECTION 12.  Section 2308.203, Government Code, is amended to
8-18     read as follows:
8-19           Sec. 2308.203.  ACTION BY STATE AGENCIES.  (a)  A state
8-20     agency that is responsible for the administration of human
8-21     resources or [and] workforce development in this state shall
8-22     implement a recommendation under this subchapter if the
8-23     recommendation does not violate a federal or state law.
8-24           (b)  A state agency shall:
8-25                 (1)  provide requested information to the council in a
8-26     timely manner;
8-27                 (2)  report on the implementation of the council's
 9-1     recommendations at the time and in the format requested by the
 9-2     council; and
 9-3                 (3)  notify the governor, the executive director, and
 9-4     the presiding officer of the council within 30 days if the agency
 9-5     determines that a recommendation cannot be implemented.
 9-6           SECTION 13.  Section 2308.303(a), Government Code, is amended
 9-7     to read as follows:
 9-8           (a)  A board shall:
 9-9                 (1)  serve as a single point of contact for local
9-10     businesses to communicate their skill needs and to influence the
9-11     direction of all workforce development programs in the workforce
9-12     development area;
9-13                 (2)  serve as a private industry council under the Job
9-14     Training Partnership Act (29 U.S.C. Section 1501 et seq.);
9-15                 (3)  develop a local plan to address the workforce
9-16     development needs of the workforce development area that:
9-17                       (A)  is responsive to the goals, objectives, and
9-18     performance standards established by the governor;
9-19                       (B)  targets services to meet local needs,
9-20     including the identification of industries and employers likely to
9-21     employ workers who complete job training programs; and
9-22                       (C)  ensures that the workforce development
9-23     system, including the educational system, has the flexibility to
9-24     meet the needs of local businesses;
9-25           (4)  designate the board or another entity as the board's
9-26     fiscal agent to be responsible and accountable for the management
9-27     of all workforce development funds available to the board;
 10-1          (5)  create local career development centers under Section
 10-2    2308.312;
 10-3          (6)  review plans for workforce education to ensure that the
 10-4    plans address the needs of local businesses and recommend
 10-5    appropriate changes in the delivery of education services;
 10-6          (7)  assume the functions and responsibilities of local
 10-7    workforce development advisory boards, councils, and committees
 10-8    authorized by federal or state law, including private industry
 10-9    councils, quality workforce planning committees, job service
10-10    employer committees, and local general vocational program advisory
10-11    committees;
10-12          (8)  monitor and evaluate the effectiveness of the career
10-13    development centers, state agencies and other contractors providing
10-14    workforce training and services, and vocational and technical
10-15    education programs operated by local education agencies and
10-16    institutions of higher education to ensure that performance is
10-17    consistent with state and local goals and objectives; and
10-18          (9)  promote cooperation and coordination among public
10-19    organizations, community organizations, charitable and religious
10-20    organizations, and private businesses providing workforce
10-21    development, in a manner consistent with the nondiscrimination
10-22    principles and safeguards stated in 42 U.S.C.  Section 604a.
10-23          SECTION 14.  Section 2308.402, Government Code, is amended to
10-24    read as follows:
10-25          Sec. 2308.402.  DUTIES OF SKILL STANDARDS BOARD.  (a)  The
10-26    skill standards board shall:
10-27                (1)  validate and recognize nationally established
 11-1    skill standards to guide curriculum development, training,
 11-2    assessment, and certification of workforce skills;
 11-3                (2)  convene industry groups to develop skill standards
 11-4    and certification procedures for industries and occupations in
 11-5    which standards have not been established or adopted and recognize
 11-6    the skill standards and certification procedures;
 11-7                (3)  review the standards developed by other states and
 11-8    foreign countries and enter into agreements for mutual recognition
 11-9    of standards and credentials to enhance portability of skills; and
11-10                (4)  promote the use of standards and credentials among
11-11    employers.
11-12          (b)  The skill standards board shall:
11-13                (1)  report periodically to the governor; and
11-14                (2)  provide annual reports to the governor, the
11-15    division, and the legislature.
11-16          SECTION 15.  Subchapter G, Chapter 301, Labor Code, is
11-17    repealed.
11-18          SECTION 16.  This Act takes effect September 1, 1999.
11-19          SECTION 17.  The importance of this legislation and the
11-20    crowded condition of the calendars in both houses create an
11-21    emergency and an imperative public necessity that the
11-22    constitutional rule requiring bills to be read on three several
11-23    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. 3431 was passed by the House on May
         11, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 3431 on May 27, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3431 was passed by the Senate, with
         amendments, on May 24, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor