1-1     By:  Delisi, Junell, Luna (Senate Sponsor - Fraser)   H.B. No. 3431
 1-2           (In the Senate - Received from the House May 11, 1999;
 1-3     May 12, 1999, read first time and referred to Committee on Economic
 1-4     Development; May 14, 1999, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the Council on Workforce and Economic Competitiveness.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Section 2308.004, Government Code, is amended to
1-11     read as follows:
1-12           Sec. 2308.004.  PROGRAM YEAR.  Under this chapter, a program
1-13     year begins on July 1 and ends on June 30 unless otherwise
1-14     specified under appropriate state or federal law.
1-15           SECTION 2.  Subchapter A, Chapter 2308, Government Code, is
1-16     amended by adding Section 2308.006 to read as follows:
1-17           Sec. 2308.006.  APPLICATION OF PRIOR LAW.  (a)  If a change
1-18     in law made by House Bill 3431, Acts of the 76th Legislature,
1-19     Regular Session, 1999, would have the effect of invalidating an
1-20     exemption granted under the Workforce Investment Act of 1998 (Pub.
1-21     L. No. 105-220), the Council on Workforce and Economic
1-22     Competitiveness may not operate under that change in law but,
1-23     instead, shall operate under the law as it existed before the
1-24     effective date of this Act.
1-25           (b)  A change in law described by Subsection (a) of this
1-26     section does not affect other related provisions or applications of
1-27     a statute that can be given effect without that change in law, and
1-28     to this end those other provisions and applications of the statute
1-29     shall be given effect.
1-30           SECTION 3.  Section 2308.051(a), Government Code, is amended
1-31     to read as follows:
1-32           (a)  The council [Council on Workforce and Economic
1-33     Competitiveness] acts as a state human resource investment council
1-34     under the Job Training Reform Amendments of 1992 (29 U.S.C. Section
1-35     1792 et seq.) and as a state workforce investment board under the
1-36     Workforce Investment Act of 1998 (Pub. L. No. 105-220).
1-37           SECTION 4.  Section 2308.052(b), Government Code, is amended
1-38     to read as follows:
1-39           (b)  The council is composed of:
1-40                 (1)  three voting members who represent education, one
1-41     of whom represents local public education, one of whom represents
1-42     public postsecondary education, and one of whom represents
1-43     vocational education;
1-44                 (2)  five voting members who represent organized labor
1-45     appointed from recommendations made by recognized labor
1-46     organizations;
1-47                 (3)  five voting members who represent business and
1-48     industry, including business members serving on local workforce
1-49     development boards or private industry councils;
1-50                 (4)  two voting members who represent community-based
1-51     organizations; and
1-52                 (5)  the following ex officio voting members:
1-53                       (A)  the chair of the State Board of Education;
1-54                       (B)  the chair of the Texas Higher Education
1-55     Coordinating Board;
1-56                       (C)  the presiding officer of the Texas Board of
1-57     Human Services;
1-58                       (D)  the presiding officer of the policy advisory
1-59     board of the Texas Department of Economic Development [Commerce];
1-60     and
1-61                       (E)  the chair of the Texas Workforce Commission.
1-62           SECTION 5.  Section 2308.101, Government Code, is amended to
1-63     read as follows:
1-64           Sec. 2308.101.  GENERAL DUTIES.  The council shall:
 2-1                 (1)  promote the development of a well-educated, highly
 2-2     skilled workforce in this state;
 2-3                 (2)  advocate the development of an integrated
 2-4     workforce development system to provide quality services addressing
 2-5     the needs of business and workers in this state;
 2-6                 (3)  recommend to the governor the designation or
 2-7     redesignation of workforce development areas for the local planning
 2-8     and delivery of workforce development;
 2-9                 (4)  identify and recommend to the governor incentives
2-10     to encourage the consolidation, on a regional labor market basis,
2-11     of:
2-12                       (A)  local boards, councils, and committees; and
2-13                       (B)  service delivery areas authorized under the
2-14     Job Training Partnership Act (29 U.S.C. Section 1501 et seq.)  or
2-15     other federal workforce legislation;
2-16                 (5)  review plans for local workforce development
2-17     [training and services] and make recommendations to the governor
2-18     for approval;
2-19                 (6)  evaluate the effectiveness of the [all] workforce
2-20     development system;
2-21                 (7)  use [using] the administrative records of the
2-22     state's unemployment compensation program and other sources as
2-23     appropriate in evaluating the workforce development system;
2-24                 (8)  encourage, [(7)] support, or develop research and
2-25     demonstration projects designed to develop new programs and
2-26     approaches to service delivery;
2-27                 (9) [(8)]  recommend measures to ensure that
2-28     occupational skills training is:
2-29                       (A)  provided in occupations that are locally in
2-30     demand; and
2-31                       (B)  directed toward high-skill and high-wage
2-32     jobs;
2-33                 (10) [(9)]  monitor the operation of the state's
2-34     workforce development system [programs] to assess the degree to
2-35     which the system is [these programs are] effective in achieving
2-36     state and local goals and objectives;
2-37                 (11) [(10)]  develop and recommend to the governor
2-38     criteria for the establishment of local workforce development
2-39     boards; [and]
2-40                 (12) [(11)]  carry out the federal and state duties and
2-41     responsibilities of advisory councils under applicable federal and
2-42     state workforce development laws or regulations;
2-43                 (13)  report periodically to the governor and the
2-44     legislature; and
2-45                 (14)  provide annual reports to the governor and the
2-46     legislature, including an annual report analyzing work development
2-47     programs that focus on welfare to work initiatives.
2-48           SECTION 6.  Section 2308.102(a), Government Code, is amended
2-49     to read as follows:
2-50           (a)  The council shall assume the duty to:
2-51                 (1)  develop, with the assistance of each appropriate
2-52     state agency, [and] recommend to the governor, and report to the
2-53     legislature state plans required by applicable federal law in order
2-54     for the state to receive federal funds;
2-55                 (2)  make policy recommendations to the governor and
2-56     the legislature on goals and priorities for formula and
2-57     discretionary funds for all applicable programs;
2-58                 (3)  participate directly in the development of the
2-59     state plan for career and technology [master plan for vocational]
2-60     education, as required by law, and recommend the plan to the Texas
2-61     Education Agency [State Board of Education, the Texas Higher
2-62     Education Coordinating Board, and the governor];
2-63                 (4)  ensure that general revenue funds previously
2-64     available to the Texas Literacy Council are used to support the
2-65     efforts of local literacy councils in a manner consistent with the
2-66     state strategic plan;
2-67                 (5)  recommend to the State Board of Vocational
2-68     Education the division of federal funds between secondary and
2-69     postsecondary educational agencies under the Carl D. Perkins
 3-1     Vocational and Applied Technology Education Act (20 U.S.C. Section
 3-2     2301 et seq.); and
 3-3                 (6)  make recommendations to the Texas Workforce
 3-4     [Employment] Commission on unemployment insurance issues pertinent
 3-5     to the responsibilities of the council.
 3-6           SECTION 7.  Sections 2308.104(a) and (c), Government Code,
 3-7     are amended to read as follows:
 3-8           (a)  The council shall develop and recommend to the governor
 3-9     and report to the legislature a single strategic plan that
3-10     establishes the framework for the budgeting and operation of the
3-11     [all] workforce development system [programs], including school to
3-12     careers and welfare to work components [transition programs],
3-13     administered by agencies represented on the council.  The council
3-14     shall annually report to the governor and the legislature on the
3-15     implementation of the strategic plan.
3-16           (c)  The council shall include in the strategic plan goals,
3-17     objectives, and performance measures for the [all] workforce
3-18     development system that involve programs of state agencies that are
3-19     represented on the council.
3-20           SECTION 8.  Section 2308.151, Government Code, is amended to
3-21     read as follows:
3-22           Sec. 2308.151.  ESTABLISHMENT OF EVALUATION SYSTEM; FUNDING.
3-23     (a) The council shall establish and maintain an automated follow-up
3-24     and evaluation system derived from appropriate available
3-25     information, including:
3-26                 (1)  unemployment insurance wage records maintained by
3-27     the Texas Workforce [Employment] Commission; and
3-28                 (2)  student follow-up information available through
3-29     the Texas Higher Education Coordinating Board.
3-30           (b)  The agencies represented on the council shall fund the
3-31     maintenance and operation of the evaluation system by using funds
3-32     available to the agencies for evaluation of each agency's workforce
3-33     development programs.
3-34           SECTION 9.  Sections 2308.153(b) and (c), Government Code,
3-35     are amended to read as follows:
3-36           (b)  Evaluation data in the system must include:
3-37                 (1)  placement rates;
3-38                 (2)  wages paid;
3-39                 (3)  retention in employment statistics;
3-40                 (4)  the number of education and training-related
3-41     placements; and
3-42                 (5)  other appropriate factors, including public
3-43     welfare dependency and the pursuit of additional education.
3-44           (c)  The council may develop a method for collecting
3-45     occupational information to supplement wage record information
3-46     collected by the Texas Workforce [Employment] Commission.  The
3-47     council may request employers, providers, and other appropriate
3-48     sources to provide placement, employment, and earnings information
3-49     to the council.
3-50           SECTION 10.  Section 2308.154, Government Code, is amended to
3-51     read as follows:
3-52           Sec. 2308.154.  ANALYSIS.  At least annually, the council
3-53     shall issue an analysis, by occupation and by the provider of the
3-54     job placement performance, of each workforce development
3-55     [education] program for the previous one-year, three-year, and
3-56     five-year periods to:
3-57                 (1)  each provider of workforce education or workforce
3-58     training and services;
3-59                 (2)  the Texas Higher Education Coordinating Board for
3-60     each provider of workforce education approved and administered by
3-61     the higher education coordinating board;
3-62                 (3)  each local workforce development board for each
3-63     provider of workforce training and services within the workforce
3-64     development area; and
3-65                 (4)  the division.
3-66           SECTION 11.  Section 2308.156, Government Code, is amended to
3-67     read as follows:
3-68           Sec. 2308.156.  USE BY COUNCIL AND LOCAL WORKFORCE
3-69     DEVELOPMENT BOARD.  The council and each local workforce
 4-1     development board shall use the information under this subchapter
 4-2     and other information to determine whether a specific workforce
 4-3     training and services program administered by or funded by the
 4-4     local board is effective and whether to continue the training and
 4-5     services program.
 4-6           SECTION 12.  Section 2308.203, Government Code, is amended to
 4-7     read as follows:
 4-8           Sec. 2308.203.  ACTION BY STATE AGENCIES.  (a)  A state
 4-9     agency that is responsible for the administration of human
4-10     resources or [and] workforce development in this state shall
4-11     implement a recommendation under this subchapter if the
4-12     recommendation does not violate a federal or state law.
4-13           (b)  A state agency shall:
4-14                 (1)  provide requested information to the council in a
4-15     timely manner;
4-16                 (2)  report on the implementation of the council's
4-17     recommendations at the time and in the format requested by the
4-18     council; and
4-19                 (3)  notify the governor, the executive director, and
4-20     the presiding officer of the council within 30 days if the agency
4-21     determines that a recommendation cannot be implemented.
4-22            SECTION 13.  Section 2308.402, Government Code, is amended
4-23     to read as follows:
4-24           Sec. 2308.402.  DUTIES OF SKILL STANDARDS BOARD.  (a)  The
4-25     skill standards board shall:
4-26                 (1)  validate and recognize nationally established
4-27     skill standards to guide curriculum development, training,
4-28     assessment, and certification of workforce skills;
4-29                 (2)  convene industry groups to develop skill standards
4-30     and certification procedures for industries and occupations in
4-31     which standards have not been established or adopted and recognize
4-32     the skill standards and certification procedures;
4-33                 (3)  review the standards developed by other states and
4-34     foreign countries and enter into agreements for mutual recognition
4-35     of standards and credentials to enhance portability of skills; and
4-36                 (4)  promote the use of standards and credentials among
4-37     employers.
4-38           (b)  The skill standards board shall:
4-39                 (1)  report periodically to the governor; and
4-40                 (2)  provide annual reports to the governor, the
4-41     division, and the legislature.
4-42           SECTION 14.  Subchapter G, Chapter 301, Labor Code, is
4-43     repealed.
4-44           SECTION 15.  This Act takes effect September 1, 1999.
4-45           SECTION 16.  The importance of this legislation and the
4-46     crowded condition of the calendars in both houses create an
4-47     emergency and an imperative public necessity that the
4-48     constitutional rule requiring bills to be read on three several
4-49     days in each house be suspended, and this rule is hereby suspended.
4-50                                  * * * * *