By Oliveira, Brimer, Luna, Solis of Cameron, H.B. No. 3657
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation, funding, and operation of certain
1-3 workforce development programs.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. SMART JOBS FUND PROGRAM
1-6 SECTION 1.01. Section 481.151, Government Code, is amended
1-7 to read as follows:
1-8 Sec. 481.151. DEFINITIONS. In this subchapter:
1-9 (1) "County average weekly wage" means the average
1-10 weekly wage paid by all employers in a county that are covered by
1-11 unemployment compensation insurance, as determined by the Texas
1-12 Workforce Commission for the most recent period for which data is
1-13 available. ["Business development" includes relocation, expansion,
1-14 turnover, diversification, or technological change.]
1-15 (2) ["Demand occupation" means an occupation in which,
1-16 as a result of business development, there are or will be positive
1-17 growth-to-replacement ratios within the next 12 to 24 months,
1-18 according to the best available sources of state and local labor
1-19 market information.]
1-20 [(3) "Emerging occupation" means an occupation that
1-21 arises from forces related to technological changes in the
1-22 workplace and the work of which cannot be performed by workers from
1-23 other occupations without at least two months of customized
1-24 education or training.]
1-25 [(4)] "Employee" means an individual who performs
2-1 services for another under a contract of hire, whether express or
2-2 implied, or oral or written.
2-3 (3) [(5)] "Employer" means a person that employs one
2-4 or more employees.
2-5 (4) [(6)] "Executive director" means the executive
2-6 director of the department.
2-7 (5) [(7)] "Existing employer" means an employer that:
2-8 (A) has been liable to pay contributions under
2-9 Subtitle A, Title 4, Labor Code, [(Texas Unemployment Compensation
2-10 Act)] for more than one year;
2-11 (B) has employees; and
2-12 (C) is in compliance with the reporting and
2-13 payment requirements of Subtitle A, Title 4, Labor Code [that Act],
2-14 as determined by the Texas Workforce Commission.
2-15 (6) "Group health benefit plan" means:
2-16 (A) a health plan provided by a health
2-17 maintenance organization established under the Texas Health
2-18 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
2-19 Code);
2-20 (B) a health benefit plan approved by the
2-21 commissioner of insurance; or
2-22 (C) a self-funded or self-insured employee
2-23 welfare benefit plan that provides health benefits and is
2-24 established in accordance with the Employee Retirement Income
2-25 Security Act of 1974 (29 U.S.C. Section 1001 et seq.), as amended.
2-26 (7) "High impact development project" means a project
2-27 that assists employers that relocate operations to this state.
3-1 (8) ["Family wage job" means a job that offers:]
3-2 [(A) wages equal to or greater than the state
3-3 average weekly wage;]
3-4 [(B) benefits, such as vacation leave, sick
3-5 leave, and insurance coverage;]
3-6 [(C) reasonable opportunities for continued
3-7 skill development and career path advancement; and]
3-8 [(D) a substantial likelihood of long-term job
3-9 security.]
3-10 [(9)] "In-kind contribution" means a noncash
3-11 contribution of goods and services provided by an employer as all
3-12 or part of the employer's matching share of a grant or project.
3-13 (9) [(10)] "Job" means employment on a basis
3-14 customarily considered full-time for the applicable occupation and
3-15 industry.
3-16 (10) "Large business" means a business entity that
3-17 employs at least 500 employees.
3-18 (11) "Medium business" means a business entity that
3-19 employs more than 99 but fewer than 500 employees. ["Manufacturing
3-20 occupation" means an occupation that is involved in the mechanical
3-21 or chemical transformation of materials or substances into new
3-22 products.]
3-23 (12) "Micro-business" means a [an eligible] business
3-24 entity that employs [with] not more than 20 employees.
3-25 (13) "Minimally qualified job" means a job for which
3-26 an application has been submitted and that:
3-27 (A) pays more than the county average weekly
4-1 wage; and
4-2 (B) is covered by a group health benefit plan
4-3 for which the business pays at least 80 percent of the premiums or
4-4 other charges assessed for employee-only coverage under the plan.
4-5 (14) [(13)] "Minority employer" means a business
4-6 entity at least 51 percent of which is owned by minority group
4-7 members or, in the case of a corporation, at least 51 percent of
4-8 the shares of which are owned by minority group members and that:
4-9 (A) is managed and, in daily operations, is
4-10 controlled by minority group members; and
4-11 (B) is a domestic business entity with a home or
4-12 branch office located in this state and is not a branch or
4-13 subsidiary of a foreign corporation or other foreign business
4-14 entity.
4-15 (15) [(14)] "Minority group members" include:
4-16 (A) African-Americans;
4-17 (B) American Indians;
4-18 (C) Asian-Americans;
4-19 (D) Mexican-Americans and other Americans of
4-20 Hispanic origin; and
4-21 (E) women.
4-22 (16) [(15)] "Program" means the smart jobs fund
4-23 program created under this subchapter.
4-24 (17) [(16)] "Project" means a specific employment
4-25 training project developed and implemented under this subchapter.
4-26 (18) [(17)] "Provider" means a person that provides
4-27 employment-related training. The term includes employers, employer
5-1 associations, labor organizations, community-based organizations,
5-2 training consultants, public and private schools, technical
5-3 institutes, junior or community colleges, senior colleges,
5-4 universities, and proprietary schools, as defined by Section
5-5 132.001, Education Code.
5-6 (19) [(18)] "Small business" means a business entity
5-7 that employs more than 20 but fewer than 100 employees [has the
5-8 meaning assigned that term by Section 481.101].
5-9 (20) [(19) "State average weekly wage" means the
5-10 annual average of the average weekly wage of manufacturing
5-11 production workers in this state as of September 1 of each year, as
5-12 determined by the Texas Workforce Commission, adjusted for regional
5-13 variances.]
5-14 [(20) "Targeted industry" means an industry that
5-15 promotes high-skill, high-wage jobs using Texas-available material
5-16 and human resources, as determined by the department.]
5-17 [(21)] "Trainee" means a participant in a project
5-18 funded under this subchapter.
5-19 (21) [(22)] "Wages" means all forms of compensation or
5-20 remuneration, excluding benefits, payable for a specific period to
5-21 an employee for personal services rendered by that employee.
5-22 SECTION 1.02. Section 481.152, Government Code, is amended
5-23 to read as follows:
5-24 Sec. 481.152. SMART JOBS FUND PROGRAM; PURPOSE;
5-25 ADMINISTRATION. (a) The smart jobs fund program is created in the
5-26 department as a work force development incentive program to enhance
5-27 employment opportunities for residents of this state and to
6-1 increase the job skills of the [meet the needs of] existing work
6-2 force by providing job training assistance to businesses operating
6-3 [and new industries] in, or relocating to, this state.
6-4 (b) The program shall award grants for [give priority to]
6-5 the creation and retention of [family wage] jobs [and focus on
6-6 employers in industries] that pay more than the county average
6-7 weekly wage and are covered by a group health benefit plan for
6-8 which the business pays at least 80 percent of the premiums or
6-9 other charges assessed for employee-only coverage under the plan
6-10 [promote high-skill, high-wage jobs in high-technology areas and on
6-11 demand occupations that provide those jobs. At least 60 percent of
6-12 the money spent under the program shall be used for projects that
6-13 assist existing employers].
6-14 (c) The program shall specifically give priority to:
6-15 (1) high impact development projects; and
6-16 (2) job training designed to improve the skills of the
6-17 existing work force in this state.
6-18 (d) The governing board shall develop and adopt by rule a
6-19 scoring system that evaluates the economic impact of grant
6-20 applications and reflects the criteria set forth in this
6-21 subchapter. The executive director and the governing board shall
6-22 use the scoring system and a competitive process to award grants.
6-23 It is the intent of the legislature that, to the greatest extent
6-24 practicable:
6-25 (1) money from the smart jobs fund shall be spent:
6-26 (A) in all areas of this state; and
6-27 (B) in approximate proportion to each region's
7-1 share of the state's population, civilian labor force, unemployed,
7-2 and minimally qualified jobs; and
7-3 (2) grants shall be awarded to micro-businesses, small
7-4 businesses, medium businesses, large businesses, and minority
7-5 employers in a manner proportionate to the number of persons
7-6 employed by those categories of businesses.
7-7 (e) At least 70 percent of the money spent under the program
7-8 shall be used for projects that assist existing employers located
7-9 in this state by training or retraining employees. The balance of
7-10 the money spent under the program shall be used for high impact
7-11 development projects.
7-12 (f) The governing board shall determine appropriate means to
7-13 accomplish the goals of the program. As necessary to implement
7-14 those goals, the governing board may work in conjunction with the
7-15 Texas Workforce Commission and the comptroller.
7-16 (g) The department shall administer the program.
7-17 (h) [(d)] The executive director may employ personnel as
7-18 necessary to administer the program.
7-19 (i) In implementing provisions under this subchapter
7-20 regarding the classification of this state into regions, the
7-21 department shall use the uniform service regions established by the
7-22 comptroller under Section 120, Article V, Chapter 19, Acts of the
7-23 72nd Legislature, 1st Called Session, 1991 (the General
7-24 Appropriations Act).
7-25 SECTION 1.03. Section 481.153, Government Code, is amended
7-26 to read as follows:
7-27 Sec. 481.153. RULES. The governing [policy] board shall
8-1 adopt rules as necessary to implement the program.
8-2 SECTION 1.04. Section 481.154, Government Code, is amended
8-3 to read as follows:
8-4 Sec. 481.154. FUNDING; RAINY DAY FUND. (a) The smart jobs
8-5 fund is established as a special trust fund in the custody of the
8-6 comptroller separate and apart from all public money or funds of
8-7 this state. The fund is composed of:
8-8 (1) money transferred into the fund under Section
8-9 204.123, Labor Code;
8-10 (2) gifts, grants, and other donations received by the
8-11 department for the fund; and
8-12 (3) any amounts appropriated by the legislature for
8-13 the program from the general revenue fund.
8-14 (b) The program is funded through the smart jobs fund.
8-15 (c) Money in the smart jobs fund may be used for program
8-16 administration, marketing expenses, and evaluation of the program.
8-17 These costs of the department in any fiscal year may not exceed the
8-18 lesser of:
8-19 (1) five percent of the total amount appropriated for
8-20 the program for that fiscal year; or
8-21 (2) $1.5 million.
8-22 (d) The smart jobs rainy day fund is established as a
8-23 special trust fund in the custody of the comptroller separate and
8-24 apart from all public money or funds of this state. The smart jobs
8-25 rainy day fund is composed of:
8-26 (1) money transferred to that fund as provided by
8-27 Section 204.123, Labor Code;
9-1 (2) money returned by employers or recouped by the
9-2 program under Section 481.159(d); and
9-3 (3) any other money received by the governing board
9-4 for deposit in that fund.
9-5 (e) The governing board may authorize the executive director
9-6 to use money in the smart jobs rainy day fund if:
9-7 (1) the governing board determines, after consulting
9-8 with the comptroller, that the smart jobs fund contains
9-9 insufficient money to cover the amounts appropriated by the
9-10 legislature to operate the program; and
9-11 (2) the Texas Workforce Commission has determined
9-12 that:
9-13 (A) the unemployment rate in this state is 125
9-14 percent of the average unemployment rate in this state during the
9-15 preceding three years; or
9-16 (B) a severe economic dislocation is occurring
9-17 in a specific region of this state.
9-18 (f) The Texas Workforce Commission by rule shall define
9-19 "severe economic dislocation" for purposes of Subsection (e). In
9-20 adopting a definition, the commission shall consider
9-21 employment-related factors, including:
9-22 (1) massive layoffs in a region of this state caused
9-23 by:
9-24 (A) the closure of military bases;
9-25 (B) the effect of the implementation of the
9-26 North American Free Trade Agreement;
9-27 (C) employer relocations; or
10-1 (D) other analogous situations; and
10-2 (2) the number of jobs lost in a region compared to
10-3 the region's usual rates of employment.
10-4 (g) If the governing board approves the use of money from
10-5 the smart jobs rainy day fund because of a severe economic
10-6 dislocation occurring in a specific region of the state, the
10-7 executive director may use the money allocated from the smart jobs
10-8 rainy day fund solely for projects located in the affected region.
10-9 (h) Notwithstanding any other provision of this section, the
10-10 total combined amount spent in any fiscal year from the smart jobs
10-11 fund and the smart jobs rainy day fund may not exceed the amount
10-12 appropriated by the legislature for that fiscal year for the
10-13 operation of the smart jobs fund program.
10-14 (i) If, during any three consecutive months, the balance in
10-15 the smart jobs fund or the smart jobs rainy day fund exceeds 0.15
10-16 percent of the total taxable wages for the four calendar quarters
10-17 ending the preceding June 30, as computed under Section 204.062(c),
10-18 Labor Code, the executive director shall immediately transfer the
10-19 excess from the applicable fund to the Unemployment Compensation
10-20 Fund created under Section 203.021, Labor Code.
10-21 SECTION 1.05. Section 481.155, Government Code, is amended
10-22 to read as follows:
10-23 Sec. 481.155. GRANTS. (a) The executive director and the
10-24 governing board may award grants for projects that meet the
10-25 requirements of this chapter. [It is the intent of the legislature
10-26 that, to the greatest extent practicable, money from the smart jobs
10-27 fund shall be spent in all areas of the state. The executive
11-1 director may award a grant or a combination of grants in any
11-2 fiscal year to a single employer in excess of $1,500,000 or at a
11-3 rate greater than 10 percent of the annual wages of the new or
11-4 existing job being created or retained with the grant only if:]
11-5 [(1) the employer locates or expands in an enterprise
11-6 zone;]
11-7 [(2) the employer locates or expands in an adversely
11-8 affected defense-dependent community;]
11-9 [(3) the employer locates or expands in an area having
11-10 an unemployment rate 1-1/2 times greater than the statewide average
11-11 at the time of the application;]
11-12 [(4) the employer locates or expands in a county with
11-13 a population of less than 75,000;]
11-14 [(5) at least 25 percent of the employees hired or
11-15 retained by the employer are economically disadvantaged individuals
11-16 as defined by Section 2303.402(c); or]
11-17 [(6) the employer is a small business or a
11-18 micro-business.]
11-19 (b) The governing board shall make the final award decision
11-20 for a grant application:
11-21 (1) regarding a high impact development project; or
11-22 (2) requesting an award of at least $250,000. [The
11-23 executive director shall attempt to ensure that at least 20 percent
11-24 of the total dollar amount of grants awarded under the program are
11-25 awarded to minority employers.]
11-26 (c) [The program is job-driven.] A grant may not be awarded
11-27 unless each employer participating in the project certifies that:
12-1 (1) a job or job opening exists or will exist at the
12-2 end of the project for which the grant is sought; and
12-3 (2) the job or job opening will be filled by a
12-4 participant in the project.
12-5 (d) A grant may not be awarded unless each employer
12-6 participating in the project certifies that each job under the
12-7 project is covered by a group health benefit plan for which the
12-8 business pays at least 80 percent of the premiums or other charges
12-9 assessed for employee-only coverage under the plan.
12-10 (e) A grant may not be awarded for a project under this
12-11 section unless each employer participating in the project certifies
12-12 that the starting wage for a new job created through the project
12-13 will be equal to or greater than the county average weekly
12-14 [prevailing] wage for the county in which the job or project is
12-15 located [that occupation in the local labor market area] and that
12-16 the wage for a job existing on the date that the project is
12-17 scheduled to begin will be increased to the greater of:
12-18 (1) three percent for a micro-business or small
12-19 business or five percent for a business that is not a
12-20 micro-business or small business over the wage in effect on the day
12-21 before the date on which the project is scheduled to begin for that
12-22 job; or
12-23 (2) 100 percent of the county average weekly
12-24 [prevailing] wage for the county in which the job or project is
12-25 located [that occupation in the local labor market area].
12-26 (f) [(e)] An employer may apply for a grant under this
12-27 chapter. An[, and an] employer [who is a micro-business] may
13-1 request a modification of the requirements provided by Subsection
13-2 (e) [(d)] and Section 481.159(c), if[:]
13-3 [(1) the employer is required to reduce or eliminate
13-4 the employer's work force because of reductions in overall
13-5 employment within an industry;]
13-6 [(2) a substantial change in the skills required to
13-7 continue the employer's business exists because of technological
13-8 changes; or]
13-9 [(3) other] reasonable factors exist for the
13-10 modification, as determined by the executive director[, exist].
13-11 (g) [(f)] Grants awarded under this section for which the
13-12 executive director has modified the requirements of Subsection (e)
13-13 [(d)] may not, in any fiscal year, exceed 10 percent of the total
13-14 dollar amount of grants awarded under the program in that year.
13-15 (h) [(g)] Unless modified by the executive director under
13-16 rules adopted by the governing [policy] board, a grant may not be
13-17 awarded for a project unless each employer participating in the
13-18 project certifies that it will continue to spend on nonmanagerial
13-19 training an amount from private sources equal to the average amount
13-20 spent by that employer on such training for the most recent
13-21 two-year period.
13-22 (i) [(h)] A grant may not be awarded for a project if the
13-23 project will impair existing contracts for services or collective
13-24 bargaining agreements, except that a project inconsistent with the
13-25 terms of a collective bargaining agreement may be undertaken with
13-26 the written concurrence of the collective bargaining unit and the
13-27 employer or employers who are parties to the agreement.
14-1 [(i) During each state fiscal year the executive director
14-2 shall attempt to ensure that at least 50 percent of the total
14-3 dollar amount of grants awarded under this section is awarded to
14-4 small businesses, as defined by Section 481.101.]
14-5 [(j) In awarding a grant under this section, the executive
14-6 director shall give priority to a project that is located in an
14-7 enterprise zone as defined by Section 2303.003.]
14-8 SECTION 1.06. Section 481.156, Government Code, is amended
14-9 to read as follows:
14-10 Sec. 481.156. GRANT APPLICATION; AWARDING OF GRANTS. (a)
14-11 An employer [The following] may apply for a grant under this
14-12 subchapter. The executive director shall establish multiple
14-13 application review and grant award tracks as provided by this
14-14 section.
14-15 (b) The department may award grants to:
14-16 (1) one or more employers to secure training [for
14-17 demand occupations, emerging occupations, or manufacturing
14-18 occupations];
14-19 (2) one or more employers acting in partnership with
14-20 an employer organization, labor organization, or community-based
14-21 organization to secure training [for demand occupations, emerging
14-22 occupations, or manufacturing occupations]; or
14-23 (3) one or more employers acting in partnership with a
14-24 consortium composed of more than one provider to secure training
14-25 [for demand occupations, emerging occupations, or manufacturing
14-26 occupations].
14-27 (c) [(b)] A grant application must be filed with the
15-1 department in a form approved by the executive director.
15-2 Applications submitted by medium and large businesses [and] must
15-3 include a complete business and training plan, including:
15-4 (1) the number and kind of jobs available;
15-5 (2) the skills and competencies required for the
15-6 identified jobs;
15-7 (3) the wages to be paid to trainees on successful
15-8 completion of the project;
15-9 (4) the goals, objectives, and outcome measures for
15-10 the project;
15-11 (5) the proposed curriculum for the project; and
15-12 (6) the projected cost per person enrolled, trained,
15-13 hired, and retained in employment.
15-14 (d) The executive director shall establish a quarterly
15-15 competitive application process for grant applications:
15-16 (1) submitted by medium and large businesses; or
15-17 (2) requesting an award of $250,000 or more.
15-18 (e) The governing board shall ensure that the complexity of
15-19 the application process appropriately corresponds to the size of
15-20 the business and the amount of funds awarded under the grant. The
15-21 executive director shall establish a simplified application
15-22 process for grant applications from small businesses and
15-23 micro-businesses and shall ensure that the application process for
15-24 small businesses and micro-businesses is an open and ongoing
15-25 process.
15-26 (f) [(c)] The department may provide assistance with the
15-27 application process to all applicants and shall give priority to
16-1 assisting applicants who are small businesses or micro-businesses
16-2 [in formulating the business and training plan required under
16-3 Subsection (b)].
16-4 (g) [(d)] The department shall minimize the length of the
16-5 application form and shall simplify as much as possible the review
16-6 process for grant applications.
16-7 (h) The department shall notify each applicant as to whether
16-8 the application is complete not later than the fifth business day
16-9 after the date on which the application is received by the
16-10 department. [(e)] The executive director shall act on a completed
16-11 application requesting an award of less than $250,000 not later
16-12 than the 30th day after the date on which the department notifies
16-13 the applicant that the application is complete [filed with the
16-14 department].
16-15 SECTION 1.07. Subchapter J, Chapter 481, Government Code, is
16-16 amended by adding Section 481.1565 to read as follows:
16-17 Sec. 481.1565. CONFIDENTIALITY REQUIREMENTS. (a)
16-18 Information provided by an applicant in a grant application is
16-19 confidential information for purposes of Chapter 552 only as
16-20 provided by this section.
16-21 (b) Information provided by an applicant whose application
16-22 is denied is confidential information for purposes of Chapter 552.
16-23 (c) Information provided by an applicant whose application
16-24 is granted and who accepts an award is confidential information for
16-25 purposes of Chapter 552 only if the information would otherwise be
16-26 confidential under the terms of that chapter. The department shall
16-27 make a good faith effort to notify an applicant whose application
17-1 is granted and who accepts an award of each request for information
17-2 regarding the applicant that is determined by the department to be
17-3 a request for information that is not confidential under this
17-4 subsection and that the department will release to the person
17-5 requesting the information.
17-6 SECTION 1.08. Section 481.157(b), Government Code, is
17-7 amended to read as follows:
17-8 (b) The governing [policy] board may adopt rules modifying
17-9 the requirements of Subsection (a) for employers that are small
17-10 businesses or micro-businesses [with fewer than 50 employees] and
17-11 may also adopt rules modifying the requirements of Subsection (a)
17-12 for projects that provide significant economic benefits to an
17-13 entire region of the state.
17-14 SECTION 1.09. Section 481.159, Government Code, is amended
17-15 by amending Subsections (a) and (c) and adding Subsection (d) to
17-16 read as follows:
17-17 (a) The executive director or governing board, as
17-18 applicable, may approve any project that meets the requirements of
17-19 this subchapter. If [the executive director approves] a project is
17-20 approved and funds are available, the department shall enter into a
17-21 contract with the grant applicant and with each employer
17-22 participating in the project. The contract must specify those
17-23 skills and competencies to be gained as a result of the project.
17-24 (c) Each contract must provide a schedule for payment of
17-25 smart jobs fund money. Twenty-five percent of allowable
17-26 expenditures shall be withheld by the department for 90 days after
17-27 the date of completion of the contract. If at least 85 percent of
18-1 the trainees in the project have been retained in employment for
18-2 that 90-day period, other than trainees who leave the employment
18-3 voluntarily for better-paying jobs, and have successfully achieved
18-4 the skills and competencies, wage requirements, and other
18-5 contractual obligations, the amount of allowable expenditures
18-6 withheld shall be remitted to the employer. If there is a negative
18-7 balance, the employer is liable for the amount of the negative
18-8 balance and shall remit that amount to the department not later
18-9 than the 30th day after the date on which the employer is notified
18-10 of the negative balance by the department.
18-11 (d) Each contract must state the term of the grant award. A
18-12 grant recipient who does not use all money awarded under the grant
18-13 for the prescribed purpose within the allotted term shall reimburse
18-14 the program by submitting the appropriate amount to the executive
18-15 director not later than the 30th day after the expiration date of
18-16 the term of the grant award. The executive director shall remit
18-17 money received under this subsection to the comptroller for deposit
18-18 in the smart jobs rainy day fund.
18-19 SECTION 1.10. Section 481.160, Government Code, is amended
18-20 by amending Subsection (b) and adding Subsection (c) to read as
18-21 follows:
18-22 (b) The annual report must include for that fiscal year:
18-23 (1) the total number of minimally qualified jobs under
18-24 the program reported by region of the state and the percentage that
18-25 number represents of the total number of minimally qualified jobs
18-26 received on a statewide basis;
18-27 (2) the number of employers receiving grants under the
19-1 program reported by region of the state and the percentage that
19-2 number represents of the total number of employers receiving grants
19-3 under the program on a statewide basis;
19-4 (3) [(2)] the total amount of grants awarded reported
19-5 by region of the state and the percentage that amount represents of
19-6 the total amount of grants awarded on a statewide basis;
19-7 (4) the total amount of money awarded in each region
19-8 of the state and the percentage that amount represents of the total
19-9 amount of money awarded on a statewide basis;
19-10 (5) a comparison of the percentage of total dollars
19-11 awarded to each region versus each region's percentage of the
19-12 state's population, civilian labor force, unemployed, and minimally
19-13 qualified jobs;
19-14 (6) [(3)] the value, expressed in dollars and as a
19-15 percentage of total training expenditures, of matching
19-16 contributions made by employers;
19-17 (7) the total number of grant applicants under the
19-18 program, classified by micro-businesses, small businesses, medium
19-19 businesses, and large businesses;
19-20 (8) [(4)] the number of [small] businesses, classified
19-21 by micro-businesses, small businesses, medium businesses, and large
19-22 businesses [as defined by Section 481.101(3)], that receive grants
19-23 under the program reported by region of the state and business size
19-24 and the percentage that number represents of the total number of
19-25 each of those categories of businesses receiving grants under the
19-26 program on a statewide basis;
19-27 (9) [and] the total amount of money [the grants]
20-1 awarded to micro-businesses, small businesses, medium businesses,
20-2 and large businesses, reported by region of the state and business
20-3 size, and the percentage that amount represents of the total amount
20-4 of money awarded to those businesses on a statewide basis;
20-5 (10) [(5) the number of businesses located in
20-6 enterprise zones, as that term is defined by Chapter 2303, that
20-7 receive grants under the program and the total amount of the grants
20-8 awarded to those businesses;]
20-9 [(6) the geographical distribution of employers
20-10 receiving grants under the program;]
20-11 [(7)] the total number of jobs created, enhanced, or
20-12 retained under the program:
20-13 (A)[, reported] by region of the state;
20-14 (B) [and] by occupation; and
20-15 (C) whether attributable to:
20-16 (i) relocation of businesses to this
20-17 state, including the percentage the number attributable to the
20-18 relocation of businesses represents of the total number of jobs
20-19 created, enhanced, or retained under the program on a statewide
20-20 basis; or
20-21 (ii) training or retraining of employees
20-22 of existing employers, including the percentage the number
20-23 attributable to the training or retraining of employees of existing
20-24 employers represents of the total number of jobs created, enhanced,
20-25 or retained under the program on a statewide basis;
20-26 (11) [(8)] the wage levels of trainees entering or
20-27 returning to the workforce, broken down by current employees
21-1 undergoing retraining and new hires, at three months and one year
21-2 after the conclusion of their training;
21-3 (12) [(9)] the number and percentage of participating
21-4 employers that provide workers' compensation insurance coverage and
21-5 the number and percentage of employees covered;
21-6 (13) [(10)] the number and percentage of participating
21-7 employers that offer health care insurance coverage and the number
21-8 and percentage of employees covered;
21-9 (14) [(11)] the number and percentage of women,
21-10 disabled persons, [employers] and minority group members
21-11 [employers] receiving grants under the program as employers,
21-12 participating as trainees in training projects, or participating in
21-13 the program as providers [and the total amount of the grants
21-14 awarded], broken out by group; and
21-15 (15) a list of modifications granted under Section
21-16 481.155(f), the name of the project for which the modification was
21-17 granted, and the reason the executive director granted the
21-18 modification [(12) the number and percentage of women, minority
21-19 group members, and disabled individuals participating as trainees
21-20 in training projects, broken out by group; and]
21-21 [(13) the number and percentage of women private
21-22 providers and private providers who are minority group members
21-23 utilized by employers in training projects, broken out by group].
21-24 (c) In addition to the information required under Subsection
21-25 (b), the department shall include in the annual report, for each
21-26 region of the state in which a grant is awarded, the percentage
21-27 paid by employers in that region of the total amount of
22-1 unemployment insurance contributions paid by employers during the
22-2 preceding calendar year.
22-3 SECTION 1.11. Subchapter J, Chapter 481, Government Code, is
22-4 amended by adding Section 481.1605 to read as follows:
22-5 Sec. 481.1605. PERFORMANCE EVALUATION. (a) The governing
22-6 board shall provide for the implementation of a biennial
22-7 performance evaluation of the smart jobs fund program. The
22-8 evaluation must include:
22-9 (1) an analysis of the wage levels of trainees one
22-10 year and three years after the end of the trainees' participation
22-11 in the program;
22-12 (2) information relating to the number of trainees
22-13 employed in the same occupation after one year and three years;
22-14 (3) a survey and analysis of program satisfaction from
22-15 former grant recipients;
22-16 (4) a description of the overall impact of the program
22-17 on economic development in this state in general and on
22-18 economically distressed areas of this state in particular; and
22-19 (5) any additional information determined to be
22-20 necessary by the governing board to analyze the performance and
22-21 impact of the program.
22-22 (b) The governing board may contract with the comptroller or
22-23 another state agency to perform the evaluation and may submit
22-24 requests for proposals to contract with a private vendor for
22-25 performance of the evaluation. The governing board may enter into
22-26 contracts, memoranda of understanding, or interagency agreements as
22-27 necessary to implement this section.
23-1 (c) In performing the evaluation required by this section,
23-2 the person performing the evaluation shall also analyze the
23-3 efficiency of the program and the use of administrative funds by
23-4 the program.
23-5 (d) The department, the Texas Workforce Commission, and the
23-6 State Occupational Information Coordinating Committee shall
23-7 cooperate with the person who performs the evaluation in
23-8 implementing this section.
23-9 (e) The governing board shall pay the costs of the
23-10 evaluation from money authorized under Section 481.154(c). No
23-11 additional funds may be spent on the performance of the evaluation.
23-12 SECTION 1.12. Section 481.161, Government Code, is amended
23-13 to read as follows:
23-14 Sec. 481.161. EXPIRATION. This subchapter expires December
23-15 31, 2001 [1999].
23-16 ARTICLE 2. SKILLS DEVELOPMENT FUND
23-17 SECTION 2.01. Section 303.003(a), Labor Code, is amended to
23-18 read as follows:
23-19 (a) To achieve the purposes of this chapter, the skills
23-20 development fund is created. The fund is composed of:
23-21 (1) money transferred into the fund under Section
23-22 204.123; and
23-23 (2) any amounts appropriated by the legislature for
23-24 the purpose of this chapter from [money in] the general revenue
23-25 fund.
23-26 ARTICLE 3. CONFORMING AMENDMENTS
23-27 SECTION 3.01. Section 204.0065, Labor Code, is amended to
24-1 read as follows:
24-2 Sec. 204.0065. TEMPORARY INITIAL CONTRIBUTION RATE.
24-3 Notwithstanding Section 204.006, on and after January 1, 1994, a
24-4 person's contribution rate shall be two and six-tenths percent
24-5 until the date the experience rate computed under Section 204.041
24-6 takes effect for the employer. This section expires December 31,
24-7 2001 [1999].
24-8 SECTION 3.02. Section 204.0625, Labor Code, is amended to
24-9 read as follows:
24-10 Sec. 204.0625. TEMPORARY ADJUSTMENT TO REPLENISHMENT TAX
24-11 RATE. On and after January 1, 1994, the replenishment tax rate
24-12 computed under Section 204.062 shall be adjusted to a rate computed
24-13 by subtracting 0.1 from the quotient computed under Section
24-14 204.062(a). This section expires December 31, 2001 [1999].
24-15 SECTION 3.03. Section 204.123, Labor Code, is amended to
24-16 read as follows:
24-17 Sec. 204.123. TRANSFER TO SMART JOBS FUNDS, SKILLS
24-18 DEVELOPMENT FUND, AND COMPENSATION FUND. (a) If, on September 1
24-19 of a year, the commission determines that the amount in the
24-20 compensation fund will exceed 100 percent of its floor as computed
24-21 under Section 204.061 on the next October 1 computation date, the
24-22 commission shall transfer from [the amount in] the holding fund
24-23 created under Section 204.122:
24-24 (1) 50 percent of the amount in the holding fund to
24-25 the smart jobs fund created under Section 481.154(a) [481.154],
24-26 Government Code;
24-27 (2) 30 percent of the amount in the holding fund to
25-1 the skills development fund created under Section 303.003; and
25-2 (3) 20 percent of the amount in the holding fund to
25-3 the smart jobs rainy day fund created under Section 481.154(d),
25-4 Government Code.
25-5 (b) If, on September 1 of a year, the commission determines
25-6 that the amount in the compensation fund will be at or below 100
25-7 percent of its floor as computed under Section 204.061 on the next
25-8 October 1 computation date, the commission shall transfer to the
25-9 compensation fund as much of the amount in the holding fund as is
25-10 necessary to raise the amount in the compensation fund to 100
25-11 percent of its floor, up to and including the entire amount in the
25-12 holding fund. The commission shall transfer any remaining balance
25-13 in the holding fund to the smart jobs fund, the skills development
25-14 fund, and the smart jobs rainy day fund in the percentages
25-15 prescribed by Subsection (a) [created under Section 481.154,
25-16 Government Code].
25-17 (c) Notwithstanding Subsection (a), if, on September 1,
25-18 1999, the commission determines that the amount in the compensation
25-19 fund will exceed 100 percent of its floor as computed under Section
25-20 204.061 on the next October 1 computation date, the commission
25-21 shall transfer from the holding fund created under Section 204.122:
25-22 (1) 14 percent of the amount in the holding fund to
25-23 the smart jobs fund created under Section 481.154(a), Government
25-24 Code;
25-25 (2) 66 percent of the amount in the holding fund to
25-26 the skills development fund created under Section 303.003; and
25-27 (3) 20 percent of the amount in the holding fund to
26-1 the smart jobs rainy day fund created under Section 481.154(d),
26-2 Government Code.
26-3 (d) Subsection (c) and this subsection expire October 2,
26-4 1999.
26-5 SECTION 3.04. Section 204.124, Labor Code, is amended to
26-6 read as follows:
26-7 Sec. 204.124. EXPIRATION. This subchapter expires December
26-8 31, 2001 [1999].
26-9 ARTICLE 4. TRANSITION; EFFECTIVE DATE; EMERGENCY
26-10 SECTION 4.01. Section 481.155, Government Code, as amended
26-11 by this Act, applies only to a grant awarded by the Texas
26-12 Department of Economic Development on or after January 1, 2000. A
26-13 grant awarded before that date is governed by the law in effect
26-14 immediately before the effective date of this Act, and the former
26-15 law is continued in effect for that purpose.
26-16 SECTION 4.02. This Act takes effect September 1, 1999.
26-17 SECTION 4.03. The importance of this legislation and the
26-18 crowded condition of the calendars in both houses create an
26-19 emergency and an imperative public necessity that the
26-20 constitutional rule requiring bills to be read on three several
26-21 days in each house be suspended, and this rule is hereby suspended.