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.]
2-1 [(4)] "Employee" means an individual who performs
2-2 services for another under a contract of hire, whether express or
2-3 implied, or oral or written.
2-4 (3) [(5)] "Employer" means a person that employs one
2-5 or more employees.
2-6 (4) [(6)] "Executive director" means the executive
2-7 director of the department.
2-8 (5) [(7)] "Existing employer" means an employer that:
2-9 (A) has been liable to pay contributions under
2-10 Subtitle A, Title 4, Labor Code, [(Texas Unemployment Compensation
2-11 Act)] for more than one year;
2-12 (B) has employees; and
2-13 (C) is in compliance with the reporting and
2-14 payment requirements of Subtitle A, Title 4, Labor Code [that Act],
2-15 as determined by the Texas Workforce Commission.
2-16 (6) "Group health benefit plan" means:
2-17 (A) a health plan provided by a health
2-18 maintenance organization established under the Texas Health
2-19 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
2-20 Code);
2-21 (B) a health benefit plan approved by the
2-22 commissioner of insurance; or
2-23 (C) a self-funded or self-insured employee
2-24 welfare benefit plan that provides health benefits and is
2-25 established in accordance with the Employee Retirement Income
2-26 Security Act of 1974 (29 U.S.C. Section 1001 et seq.), as amended.
2-27 (7) [(8) "Family wage job" means a job that offers:]
3-1 [(A) wages equal to or greater than the state
3-2 average weekly wage;]
3-3 [(B) benefits, such as vacation leave, sick
3-4 leave, and insurance coverage;]
3-5 [(C) reasonable opportunities for continued
3-6 skill development and career path advancement; and]
3-7 [(D) a substantial likelihood of long-term job
3-8 security.]
3-9 [(9)] "In-kind contribution" means a noncash
3-10 contribution of goods and services provided by an employer as all
3-11 or part of the employer's matching share of a grant or project.
3-12 (8) [(10)] "Job" means employment on a basis
3-13 customarily considered full-time for the applicable occupation and
3-14 industry.
3-15 (9) "Large business" means a business entity that
3-16 employs at least 500 employees.
3-17 (10) "Medium business" means a business entity that
3-18 employs more than 99 but fewer than 500 employees.
3-19 (11) ["Manufacturing occupation" means an occupation
3-20 that is involved in the mechanical or chemical transformation of
3-21 materials or substances into new products.]
3-22 [(12)] "Micro-business" means a [an eligible] business
3-23 entity that employs [with] not more than 20 employees.
3-24 (12) [(13)] "Minority employer" means a business
3-25 entity at least 51 percent of which is owned by minority group
3-26 members or, in the case of a corporation, at least 51 percent of
3-27 the shares of which are owned by minority group members and that:
4-1 (A) is managed and, in daily operations, is
4-2 controlled by minority group members; and
4-3 (B) is a domestic business entity with a home or
4-4 branch office located in this state and is not a branch or
4-5 subsidiary of a foreign corporation or other foreign business
4-6 entity.
4-7 (13) [(14)] "Minority group members" include:
4-8 (A) African-Americans;
4-9 (B) American Indians;
4-10 (C) Asian-Americans;
4-11 (D) Mexican-Americans and other Americans of
4-12 Hispanic origin; and
4-13 (E) women.
4-14 (14) [(15)] "Program" means the smart jobs fund
4-15 program created under this subchapter.
4-16 (15) [(16)] "Project" means a specific employment
4-17 training project developed and implemented under this subchapter.
4-18 (16) [(17)] "Provider" means a person that provides
4-19 employment-related training. The term includes employers, employer
4-20 associations, labor organizations, community-based organizations,
4-21 training consultants, public and private schools, technical
4-22 institutes, junior or community colleges, senior colleges,
4-23 universities, and proprietary schools, as defined by Section
4-24 132.001, Education Code.
4-25 (17) "Qualified job" means a job for which an
4-26 application has been submitted and that:
4-27 (A) pays at least 100 percent of the county
5-1 average weekly wage; and
5-2 (B) is covered by a group health benefit plan
5-3 for which the business offers to pay at least 50 percent of the
5-4 premiums or other charges assessed for employee-only coverage under
5-5 the plan, regardless of whether an employee may voluntarily waive
5-6 the coverage.
5-7 (18) "Small business" means a business entity that
5-8 employs more than 20 but fewer than 100 employees [has the meaning
5-9 assigned that term by Section 481.101].
5-10 (19) ["State average weekly wage" means the annual
5-11 average of the average weekly wage of manufacturing production
5-12 workers in this state as of September 1 of each year, as determined
5-13 by the Texas Workforce Commission, adjusted for regional 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 (20) [(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 qualified [family wage] jobs [and
6-6 focus on employers in industries that promote high-skill, high-wage
6-7 jobs in high-technology areas and on demand occupations that
6-8 provide those jobs]. At least 60 percent of the money spent under
6-9 the program shall be used for projects that assist existing
6-10 employers. At least 20 percent shall be used for employers that
6-11 relocate operations to this state.
6-12 (c) The governing board by rule shall develop and adopt a
6-13 scoring system that evaluates the economic impact of grant
6-14 applications and reflects the criteria set forth in this
6-15 subchapter. The executive director shall use the scoring system
6-16 and a competitive process to award grants. It is the intent of the
6-17 legislature that, to the greatest extent practicable:
6-18 (1) money from the smart jobs fund be spent:
6-19 (A) in all areas of this state; and
6-20 (B) in approximate proportion to each region's
6-21 share of the state's population, civilian labor force, unemployed,
6-22 and submission of grant applications for qualified jobs; and
6-23 (2) grants shall be awarded to micro-businesses, small
6-24 businesses, medium businesses, large businesses, and minority
6-25 employers in a manner proportionate to the number of persons
6-26 employed by those categories of businesses.
6-27 (d) The governing board and the department shall determine
7-1 appropriate means to accomplish the goals of the program. As
7-2 necessary to implement those goals, the governing board and the
7-3 department may work in conjunction with the Texas Workforce
7-4 Commission and the comptroller.
7-5 (e) The department shall administer the program.
7-6 (f) [(d)] The executive director may employ personnel as
7-7 necessary to administer the program.
7-8 (g) In implementing provisions under this subchapter
7-9 regarding the classification of this state into regions, the
7-10 department shall use the uniform service regions established by the
7-11 comptroller under Section 120, Article V, Chapter 19, Acts of the
7-12 72nd Legislature, 1st Called Session, 1991 (the General
7-13 Appropriations Act).
7-14 SECTION 1.03. Section 481.153, Government Code, is amended
7-15 to read as follows:
7-16 Sec. 481.153. RULES. The governing [policy] board shall
7-17 adopt rules as necessary to implement the program.
7-18 SECTION 1.04. Section 481.154, Government Code, is amended
7-19 to read as follows:
7-20 Sec. 481.154. FUNDING; RAINY DAY FUND. (a) The smart jobs
7-21 fund is established as a special trust fund in the custody of the
7-22 comptroller separate and apart from all public money or funds of
7-23 this state. The fund is composed of:
7-24 (1) money transferred into the fund under Section
7-25 204.123, Labor Code;
7-26 (2) gifts, grants, and other donations received by the
7-27 department for the fund; and
8-1 (3) any amounts appropriated by the legislature for
8-2 the program from the general revenue fund.
8-3 (b) The program is funded through the smart jobs fund.
8-4 (c) Money in the smart jobs fund may be used for program
8-5 administration, marketing expenses, and evaluation of the program.
8-6 These costs of the department in any fiscal year may not exceed the
8-7 lesser of:
8-8 (1) five percent of the total amount appropriated for
8-9 the program for that fiscal year; or
8-10 (2) $1.5 million.
8-11 (d) The smart jobs rainy day fund is established as a
8-12 special trust fund in the custody of the comptroller separate and
8-13 apart from all public money or funds of this state. The smart jobs
8-14 rainy day fund is composed of:
8-15 (1) money transferred to that fund as provided by
8-16 Section 204.123, Labor Code;
8-17 (2) money returned by employers or recouped by the
8-18 program under Section 481.159(d); and
8-19 (3) any other money received by the governing board
8-20 for deposit in that fund.
8-21 (e) The governing board may authorize the executive director
8-22 to use money in the smart jobs rainy day fund if:
8-23 (1) the governing board determines, after consulting
8-24 with the comptroller, that the smart jobs fund contains
8-25 insufficient money to cover the amounts appropriated by the
8-26 legislature to operate the program; and
8-27 (2) the Texas Workforce Commission has determined
9-1 that:
9-2 (A) the unemployment rate in this state is 125
9-3 percent of the average unemployment rate in this state during the
9-4 preceding three years; or
9-5 (B) a severe economic dislocation is occurring
9-6 in a specific region of this state.
9-7 (f) The Texas Workforce Commission by rule shall define
9-8 "severe economic dislocation" for purposes of Subsection (e). In
9-9 adopting a definition, the commission shall consider
9-10 employment-related factors, including:
9-11 (1) massive layoffs in a region of this state caused
9-12 by:
9-13 (A) the closure of military bases;
9-14 (B) the effect of the implementation of the
9-15 North American Free Trade Agreement;
9-16 (C) employer relocations; or
9-17 (D) other analogous situations; and
9-18 (2) the number of jobs lost in a region compared to
9-19 the region's usual rates of employment.
9-20 (g) If the governing board approves the use of money from
9-21 the smart jobs rainy day fund because of a severe economic
9-22 dislocation occurring in a specific region of the state, the
9-23 executive director may use the money allocated from the smart jobs
9-24 rainy day fund solely for projects located in the affected region.
9-25 (h) Notwithstanding any other provision of this section, the
9-26 total combined amount spent in any fiscal year from the smart jobs
9-27 fund and the smart jobs rainy day fund may not exceed the amount
10-1 appropriated by the legislature for that fiscal year for the
10-2 operation of the smart jobs fund program.
10-3 (i) If, during any three consecutive months, the balance in
10-4 the smart jobs fund or the smart jobs rainy day fund exceeds 0.15
10-5 percent of the total taxable wages for the four calendar quarters
10-6 ending the preceding June 30, as computed under Section 204.062(c),
10-7 Labor Code, the executive director shall immediately transfer the
10-8 excess from the applicable fund to the Unemployment Compensation
10-9 Fund created under Section 203.021, Labor Code.
10-10 SECTION 1.05. Section 481.155, Government Code, is amended
10-11 to read as follows:
10-12 Sec. 481.155. GRANTS. (a) The executive director may award
10-13 grants for projects that meet the requirements of this chapter.
10-14 [It is the intent of the legislature that, to the greatest extent
10-15 practicable, money from the smart jobs fund shall be spent in all
10-16 areas of the state. The executive director may award a grant or a
10-17 combination of grants in any fiscal year to a single employer in
10-18 excess of $1,500,000 or at a rate greater than 10 percent of the
10-19 annual wages of the new or existing job being created or retained
10-20 with the grant only if:]
10-21 [(1) the employer locates or expands in an enterprise
10-22 zone;]
10-23 [(2) the employer locates or expands in an adversely
10-24 affected defense-dependent community;]
10-25 [(3) the employer locates or expands in an area having
10-26 an unemployment rate 1-1/2 times greater than the statewide average
10-27 at the time of the application;]
11-1 [(4) the employer locates or expands in a county with
11-2 a population of less than 75,000;]
11-3 [(5) at least 25 percent of the employees hired or
11-4 retained by the employer are economically disadvantaged individuals
11-5 as defined by Section 2303.402(c); or]
11-6 [(6) the employer is a small business or a
11-7 micro-business.]
11-8 (b) [The executive director shall attempt to ensure that at
11-9 least 20 percent of the total dollar amount of grants awarded under
11-10 the program are awarded to minority employers.]
11-11 [(c) The program is job-driven.] A grant may not be awarded
11-12 unless each employer participating in the project certifies that:
11-13 (1) a job or job opening exists or will exist at the
11-14 end of the project for which the grant is sought; and
11-15 (2) the job or job opening will be filled by a
11-16 participant in the project.
11-17 (c) Except as otherwise provided by this subsection, a grant
11-18 may not be awarded unless each employer participating in the
11-19 project certifies that each job under the project is covered by a
11-20 group health benefit plan for which the business pays at least 50
11-21 percent of the premiums or other charges assessed for employee-only
11-22 coverage under the plan. The executive director may waive the
11-23 coverage requirement for a particular job if the affected employee
11-24 voluntarily waives the coverage in the manner prescribed by rules
11-25 adopted by the governing board.
11-26 (d) A grant may not be awarded for a project under this
11-27 section unless each employer participating in the project certifies
12-1 that the starting wage for a new job created through the project
12-2 will be equal to or greater than the county average weekly
12-3 [prevailing] wage for the county in which the job or project is
12-4 located [that occupation in the local labor market area] and that
12-5 the wage for a job existing on the date that the project is
12-6 scheduled to begin will be increased to the greater of:
12-7 (1) three percent for a micro-business or small
12-8 business or five percent for a business that is not a
12-9 micro-business or small business over the wage in effect on the day
12-10 before the date on which the project is scheduled to begin for that
12-11 job; or
12-12 (2) 100 percent of the county average weekly
12-13 [prevailing] wage for the county in which the job or project is
12-14 located [that occupation in the local labor market area].
12-15 (e) An employer may apply for a grant under this chapter.
12-16 An[, and an] employer [who is a micro-business] may request a
12-17 modification of the requirements provided by Subsection (d) and
12-18 Section 481.159(c), if[:]
12-19 [(1) the employer is required to reduce or eliminate
12-20 the employer's work force because of reductions in overall
12-21 employment within an industry;]
12-22 [(2) a substantial change in the skills required to
12-23 continue the employer's business exists because of technological
12-24 changes; or]
12-25 [(3) other] reasonable factors exist for the
12-26 modification, as determined by the executive director[, exist].
12-27 (f) Grants awarded under this section for which the
13-1 executive director has modified the requirements of Subsection (d)
13-2 may not, in any fiscal year, exceed 10 percent of the total dollar
13-3 amount of grants awarded under the program in that year.
13-4 (g) Unless modified by the executive director under rules
13-5 adopted by the governing [policy] board, a grant may not be awarded
13-6 for a project unless each employer participating in the project
13-7 certifies that it will continue to spend on nonmanagerial training
13-8 an amount from private sources equal to the average amount spent by
13-9 that employer on such training for the most recent two-year period.
13-10 (h) A grant may not be awarded for a project if the project
13-11 will impair existing contracts for services or collective
13-12 bargaining agreements, except that a project inconsistent with the
13-13 terms of a collective bargaining agreement may be undertaken with
13-14 the written concurrence of the collective bargaining unit and the
13-15 employer or employers who are parties to the agreement.
13-16 (i) Notwithstanding Subsection (d) of this section or any
13-17 other provision of this subchapter, a grant awarded under this
13-18 section for a job training project is exempt from the requirement
13-19 that a job under the project pay at least 100 percent of the county
13-20 average weekly wage for the county in which the job or project is
13-21 located if the grant application was filed before September 1,
13-22 1999, and the application is for training for 1,000 or more
13-23 technology-related jobs, the training is to begin not later than
13-24 June 1, 2000, and all training is to be completed not later than
13-25 August 31, 2001. This subsection expires September 1, 2001.
13-26 [(i) During each state fiscal year the executive director
13-27 shall attempt to ensure that at least 50 percent of the total
14-1 dollar amount of grants awarded under this section is awarded to
14-2 small businesses, as defined by Section 481.101.]
14-3 [(j) In awarding a grant under this section, the executive
14-4 director shall give priority to a project that is located in an
14-5 enterprise zone as defined by Section 2303.003.]
14-6 SECTION 1.06. Section 481.156, Government Code, is amended
14-7 to read as follows:
14-8 Sec. 481.156. GRANT APPLICATION; AWARDING OF GRANTS. (a)
14-9 The following may apply for a grant under this subchapter:
14-10 (1) one or more employers to secure training [for
14-11 demand occupations, emerging occupations, or manufacturing
14-12 occupations];
14-13 (2) one or more employers acting in partnership with
14-14 an employer organization, labor organization, or community-based
14-15 organization to secure training [for demand occupations, emerging
14-16 occupations, or manufacturing occupations]; or
14-17 (3) one or more employers acting in partnership with a
14-18 consortium composed of more than one provider to secure training
14-19 [for demand occupations, emerging occupations, or manufacturing
14-20 occupations].
14-21 (b) A grant application must be filed with the department in
14-22 a form approved by the executive director and, except as provided
14-23 by Subsection (c), must include a complete business and training
14-24 plan, including:
14-25 (1) the number and kind of jobs available;
14-26 (2) the skills and competencies required for the
14-27 identified jobs;
15-1 (3) the wages to be paid to trainees on successful
15-2 completion of the project;
15-3 (4) the goals, objectives, and outcome measures for
15-4 the project;
15-5 (5) the proposed curriculum for the project; and
15-6 (6) the projected cost per person enrolled, trained,
15-7 hired, and retained in employment.
15-8 (c) The governing board by rule may exempt a micro-business
15-9 from the requirement to submit a business and training plan that
15-10 complies with Subsection (b). The governing board by rule shall
15-11 establish a simplified application process for grant applications
15-12 from micro-businesses.
15-13 (d) [(c)] The department may provide assistance with the
15-14 application process to all applicants and shall give priority to
15-15 assisting applicants who are small businesses or micro-businesses
15-16 [in formulating the business and training plan required under
15-17 Subsection (b)].
15-18 (e) [(d)] The department shall minimize the length of the
15-19 application form and shall simplify as much as possible the review
15-20 process for grant applications.
15-21 (f) The department shall notify each applicant as to whether
15-22 the application is complete not later than the fifth business day
15-23 after the date on which the application is received by the
15-24 department. [(e) The executive director shall act on a completed
15-25 application not later than the 30th day after the date on which the
15-26 application is filed with the department.]
15-27 SECTION 1.07. Subchapter J, Chapter 481, Government Code, is
16-1 amended by adding Section 481.1565 to read as follows:
16-2 Sec. 481.1565. PARTICIPATION IN ADDITIONAL PROGRAMS;
16-3 APPLICATION REQUIREMENTS. (a) A business may not apply both for a
16-4 grant under this subchapter and to a public community or technical
16-5 college for customized training and assessment from the college
16-6 through a grant issued to the college under the skills development
16-7 fund program established under Chapter 303, Labor Code, unless the
16-8 business and the college file an application for concurrent
16-9 participation in both programs.
16-10 (b) The Texas Workforce Commission and the governing board
16-11 by rule shall jointly establish the requirements for an application
16-12 subject to this section.
16-13 SECTION 1.08. Section 481.157(b), Government Code, is
16-14 amended to read as follows:
16-15 (b) The governing [policy] board may adopt rules modifying
16-16 the requirements of Subsection (a) for employers that are small
16-17 businesses or micro-businesses [with fewer than 50 employees] and
16-18 may also adopt rules modifying the requirements of Subsection (a)
16-19 for projects that provide significant economic benefits to an
16-20 entire region of the state.
16-21 SECTION 1.09. Section 481.159, Government Code, is amended
16-22 by amending Subsections (a) and (c) and adding Subsection (d) to
16-23 read as follows:
16-24 (a) The executive director may approve any project that
16-25 meets the requirements of this subchapter. If [the executive
16-26 director approves] a project is approved and funds are available,
16-27 the department shall enter into a contract with the grant applicant
17-1 and with each employer participating in the project. The contract
17-2 must specify those skills and competencies to be gained as a result
17-3 of the project.
17-4 (c) Each contract must provide a schedule for payment of
17-5 smart jobs fund money. Twenty-five percent of allowable
17-6 expenditures shall be withheld by the department for 90 days after
17-7 the date of completion of the contract. If at least 85 percent of
17-8 the trainees in the project have been retained in employment for
17-9 that 90-day period, other than trainees who leave the employment
17-10 voluntarily for better-paying jobs, and have successfully achieved
17-11 the skills and competencies, wage requirements, and other
17-12 contractual obligations, the amount of allowable expenditures
17-13 withheld shall be remitted to the employer. The governing board by
17-14 rule shall establish procedures as necessary to verify that a
17-15 trainee has left the employment for a better-paying job. If there
17-16 is a negative balance, the employer is liable for the amount of the
17-17 negative balance and shall remit that amount to the department not
17-18 later than the 30th day after the date on which the employer is
17-19 notified of the negative balance by the department.
17-20 (d) Each contract must state the term of the grant award. A
17-21 grant recipient who does not use all money awarded under the grant
17-22 for the prescribed purpose within the allotted term shall reimburse
17-23 the program by submitting the appropriate amount to the executive
17-24 director not later than the 30th day after the expiration date of
17-25 the term of the grant award. The executive director shall remit
17-26 money received under this subsection to the comptroller for deposit
17-27 in the smart jobs rainy day fund.
18-1 SECTION 1.10. Section 481.160, Government Code, is amended
18-2 by amending Subsection (b) and adding Subsection (c) to read as
18-3 follows:
18-4 (b) The annual report must include for that fiscal year:
18-5 (1) the total number of applications submitted, the
18-6 total number of applications approved, and the total number of
18-7 applications rejected, reported by region of the state and by size
18-8 of business;
18-9 (2) the number of employers receiving grants under the
18-10 program reported by region of the state and the percentage that
18-11 number represents of the total number of employers receiving grants
18-12 under the program on a statewide basis;
18-13 (3) [(2)] the total amount of money [grants] awarded
18-14 in each region of the state and the percentage that amount
18-15 represents of the total amount of money awarded on a statewide
18-16 basis;
18-17 (4) a comparison of the percentage of total dollars
18-18 awarded to each region versus each region's percentage of:
18-19 (A) the state's population;
18-20 (B) the civilian labor force;
18-21 (C) the number of unemployed persons; and
18-22 (D) the number of eligible grant applications
18-23 for qualified jobs submitted to the department;
18-24 (5) [(3)] the value, expressed in dollars and as a
18-25 percentage of total training expenditures, of matching
18-26 contributions made by employers;
18-27 (6) [(4)] the number of [small] businesses, classified
19-1 by micro-businesses, small businesses, medium businesses, and large
19-2 businesses [as defined by Section 481.101(3)], that receive grants
19-3 under the program reported by region of the state and business size
19-4 and the percentage that number represents of the total number of
19-5 each of those categories of businesses receiving grants under the
19-6 program on a statewide basis;
19-7 (7) [and] the total amount of money [the grants]
19-8 awarded to micro-businesses, small businesses, medium businesses,
19-9 and large businesses, reported by region of the state and business
19-10 size, and the percentage that amount represents of the total amount
19-11 of money awarded to those businesses on a statewide basis;
19-12 (8) [(5)] the number of businesses located in
19-13 enterprise zones, as that term is defined by Chapter 2303, that
19-14 receive grants under the program and the total amount of the grants
19-15 awarded to those businesses;
19-16 (9) [(6) the geographical distribution of employers
19-17 receiving grants under the program;]
19-18 [(7)] the total number of jobs created, enhanced, or
19-19 retained under the program:
19-20 (A) [, reported] by region of the state;
19-21 (B) [and] by occupation, classified by the
19-22 applicable two-digit standard industrial classification;
19-23 (C) by wage level; and
19-24 (D) whether attributable to:
19-25 (i) relocation of businesses to this
19-26 state, including the percentage the number attributable to the
19-27 relocation of businesses represents of the total number of jobs
20-1 created, enhanced, or retained under the program on a statewide
20-2 basis; or
20-3 (ii) training or retraining of employees
20-4 of existing employers, including the percentage that the number
20-5 attributable to the training or retraining of employees of existing
20-6 employers represents of the total number of jobs created, enhanced,
20-7 or retained under the program on a statewide basis;
20-8 (10) [(8)] the average and median weekly wage levels
20-9 of trainees entering or returning to the workforce, broken down by
20-10 current employees undergoing retraining and new hires, at three
20-11 months and one year after the conclusion of their training;
20-12 (11) [(9)] the number and percentage of participating
20-13 employers that provide workers' compensation insurance coverage and
20-14 the number and percentage of employees covered;
20-15 (12) [(10) the number and percentage of participating
20-16 employers that offer health care insurance coverage and] the number
20-17 and percentage of employees covered by the group health benefit
20-18 plan offered by the employer;
20-19 (13) [(11)] the number and percentage of women,
20-20 disabled persons, [employers] and minority group members
20-21 [employers] receiving grants under the program as employers,
20-22 participating as trainees in training projects, or participating in
20-23 the program as providers [and the total amount of the grants
20-24 awarded], broken out by group;
20-25 (14) a list of modifications granted under Section
20-26 481.155(e), the name of the project for which the modification was
20-27 granted, and the reason the executive director granted the
21-1 modification [(12) the number and percentage of women, minority
21-2 group members, and disabled individuals participating as trainees
21-3 in training projects, broken out by group]; and
21-4 (15) the number of trainees who have left employment
21-5 with a grant recipient because the trainee has obtained a
21-6 better-paying job, as verified under Section 481.159(c) [(13) the
21-7 number and percentage of women private providers and private
21-8 providers who are minority group members utilized by employers in
21-9 training projects, broken out by group].
21-10 (c) In addition to the information required under Subsection
21-11 (b), the department shall include in the annual report, for each
21-12 region of the state in which a grant is awarded, the percentage
21-13 paid by employers in that region of the total amount of
21-14 unemployment insurance contributions paid by employers during the
21-15 preceding calendar year.
21-16 SECTION 1.11. Section 481.161, Government Code, is amended
21-17 to read as follows:
21-18 Sec. 481.161. EXPIRATION. This subchapter expires December
21-19 31, 2001 [1999].
21-20 ARTICLE 2. SKILLS DEVELOPMENT FUND
21-21 SECTION 2.01. Section 303.003(a), Labor Code, is amended to
21-22 read as follows:
21-23 (a) To achieve the purposes of this chapter, the skills
21-24 development fund is created. The fund is composed of:
21-25 (1) money transferred into the fund under Section
21-26 204.123; and
21-27 (2) any amounts appropriated by the legislature for
22-1 the purpose of this chapter from [money in] the general revenue
22-2 fund.
22-3 SECTION 2.02. Chapter 303, Labor Code, is amended by adding
22-4 Sections 303.005 and 303.006 to read as follows:
22-5 Sec. 303.005. PARTICIPATION IN ADDITIONAL PROGRAMS;
22-6 APPLICATION REQUIREMENTS. An employer may not apply both to a
22-7 public community or technical college for customized training and
22-8 assessment from the college through a grant issued to the college
22-9 under the skills development fund program established under this
22-10 chapter and for a grant under the smart jobs fund program
22-11 established under Subchapter J, Chapter 481, Government Code,
22-12 unless the employer and the college file an application for
22-13 concurrent participation in both programs that complies with
22-14 Section 481.1565, Government Code.
22-15 Sec. 303.006. REPORTING REQUIREMENTS. (a) In this section:
22-16 (1) "Employee" means an individual who performs
22-17 services for another under a contract of hire, whether express or
22-18 implied, or oral or written.
22-19 (2) "Employer" means a person that employs one or more
22-20 employees.
22-21 (3) "Existing employer" means an employer that:
22-22 (A) has been liable to pay contributions under
22-23 Subtitle A, Title 4, for more than one year;
22-24 (B) has employees; and
22-25 (C) is in compliance with the reporting and
22-26 payment requirements of Subtitle A, Title 4, as determined by the
22-27 Texas Workforce Commission.
23-1 (4) "In-kind contribution" means a noncash
23-2 contribution of goods and services provided by an employer as all
23-3 or part of the employer's matching share of a grant or project.
23-4 (5) "Job" means employment on a basis customarily
23-5 considered full-time for the applicable occupation and industry.
23-6 (6) "Large employer" means a business entity that
23-7 employs at least 500 employees.
23-8 (7) "Medium employer" means a business entity that
23-9 employs more than 99 but fewer than 500 employees.
23-10 (8) "Micro-employer" means a business entity that
23-11 employs not more than 20 employees.
23-12 (9) "Program" means the skills development fund
23-13 program created under this chapter.
23-14 (10) "Small employer" means a business entity that
23-15 employs more than 20 but fewer than 100 employees.
23-16 (11) "Trainee" means a participant in a project funded
23-17 under this chapter.
23-18 (12) "Wages" means all forms of compensation or
23-19 remuneration, excluding benefits, payable for a specific period to
23-20 an employee for personal services rendered by that employee.
23-21 (b) In implementing provisions under this section regarding
23-22 the classification of this state into regions, the executive
23-23 director shall use the uniform service regions established by the
23-24 comptroller under Section 120, Article V, Chapter 19, Acts of the
23-25 72nd Legislature, 1st Called Session, 1991 (the General
23-26 Appropriations Act).
23-27 (c) The executive director shall report to the governor and
24-1 the legislature at the end of each fiscal year the status of the
24-2 program established under this chapter.
24-3 (d) The annual report must include for that fiscal year:
24-4 (1) the total number of applications submitted, the
24-5 total number of applications approved, and the total number of
24-6 applications rejected by region of the state;
24-7 (2) the average and median weekly wage levels of
24-8 trainees under this chapter entering or returning to the workforce,
24-9 broken down by:
24-10 (A) current employees undergoing retraining;
24-11 (B) new hires; and
24-12 (C) region of the state;
24-13 (3) the average and median weekly wage levels of
24-14 trainees under this chapter entering or returning to the workforce,
24-15 broken down by region of the state;
24-16 (4) the number and percentage of trainees covered by
24-17 health care insurance coverage, workers' compensation insurance
24-18 coverage, and other analogous benefit programs;
24-19 (5) the total amount of money awarded in each region
24-20 of the state and the percentage that amount represents of the total
24-21 amount of money awarded on a statewide basis;
24-22 (6) a comparison of the percentage of total dollars
24-23 awarded to each region versus each region's percentage of:
24-24 (A) the state's population;
24-25 (B) the civilian labor force;
24-26 (C) the number of unemployed persons; and
24-27 (D) the number of qualified grant applications
25-1 submitted to the commission by public community and technical
25-2 colleges;
25-3 (7) the total amount of money awarded to
25-4 micro-employers, small employers, medium employers, and large
25-5 employers, reported by region of the state; and
25-6 (8) the total number of jobs created or persons
25-7 retrained under the program:
25-8 (A) by region of the state;
25-9 (B) by occupation classified by the two-digit
25-10 standard industrial classification;
25-11 (C) by wage level; and
25-12 (D) whether attributable to:
25-13 (i) relocation of businesses to this
25-14 state; or
25-15 (ii) training or retraining of employees
25-16 of existing employers.
25-17 ARTICLE 3. STUDY OF WORKFORCE PROGRAMS BY COMPTROLLER
25-18 SECTION 3.01. Chapter 403, Government Code, is amended by
25-19 adding Subchapter N to read as follows:
25-20 SUBCHAPTER N. STUDY OF CERTAIN WORKFORCE DEVELOPMENT PROGRAMS
25-21 Sec. 403.351. PERFORMANCE EVALUATION. (a) The comptroller
25-22 shall perform a biennial performance evaluation of:
25-23 (1) the smart jobs fund program established under
25-24 Subchapter J, Chapter 481; and
25-25 (2) the skills development fund program established
25-26 under Chapter 303, Labor Code.
25-27 (b) The evaluation must include:
26-1 (1) an analysis of the wage levels of trainees one
26-2 year and three years after the end of the trainees' participation
26-3 in the programs;
26-4 (2) information relating to the number of trainees
26-5 employed in the same field after one year and three years;
26-6 (3) a survey and analysis of program satisfaction from
26-7 former grant recipients;
26-8 (4) a description of the overall impact of the
26-9 programs on economic development in this state in general and on
26-10 economically distressed areas of this state in particular; and
26-11 (5) any additional information determined to be
26-12 necessary by the comptroller to analyze the performance and impact
26-13 of the programs.
26-14 (c) In performing the evaluation required by this section,
26-15 the comptroller shall also analyze the efficiency of the programs
26-16 subject to this section and the use of administrative funds by
26-17 those programs.
26-18 (d) The Texas Department of Economic Development, the Texas
26-19 Workforce Commission, and the State Occupational Information
26-20 Coordinating Committee shall cooperate with the comptroller in
26-21 implementing this section.
26-22 ARTICLE 4. CONFORMING AMENDMENTS
26-23 SECTION 4.01. Section 204.0065, Labor Code, is amended to
26-24 read as follows:
26-25 Sec. 204.0065. TEMPORARY INITIAL CONTRIBUTION RATE.
26-26 Notwithstanding Section 204.006, on and after January 1, 1994, a
26-27 person's contribution rate shall be two and six-tenths percent
27-1 until the date the experience rate computed under Section 204.041
27-2 takes effect for the employer. This section expires December 31,
27-3 2001 [1999].
27-4 SECTION 4.02. Section 204.0625, Labor Code, is amended to
27-5 read as follows:
27-6 Sec. 204.0625. TEMPORARY ADJUSTMENT TO REPLENISHMENT TAX
27-7 RATE. On and after January 1, 1994, the replenishment tax rate
27-8 computed under Section 204.062 shall be adjusted to a rate computed
27-9 by subtracting 0.1 from the quotient computed under Section
27-10 204.062(a). This section expires December 31, 2001 [1999].
27-11 SECTION 4.03. Section 204.123, Labor Code, is amended to
27-12 read as follows:
27-13 Sec. 204.123. TRANSFER TO SMART JOBS FUNDS, SKILLS
27-14 DEVELOPMENT FUND, AND COMPENSATION FUND. (a) If, on September 1
27-15 of a year, the commission determines that the amount in the
27-16 compensation fund will exceed 100 percent of its floor as computed
27-17 under Section 204.061 on the next October 1 computation date, the
27-18 commission shall transfer from [the amount in] the holding fund
27-19 created under Section 204.122:
27-20 (1) 50 percent of the amount in the holding fund to
27-21 the smart jobs fund created under Section 481.154(a) [481.154],
27-22 Government Code;
27-23 (2) 30 percent of the amount in the holding fund to
27-24 the skills development fund created under Section 303.003; and
27-25 (3) 20 percent of the amount in the holding fund to
27-26 the smart jobs rainy day fund created under Section 481.154(d),
27-27 Government Code.
28-1 (b) If, on September 1 of a year, the commission determines
28-2 that the amount in the compensation fund will be at or below 100
28-3 percent of its floor as computed under Section 204.061 on the next
28-4 October 1 computation date, the commission shall transfer to the
28-5 compensation fund as much of the amount in the holding fund as is
28-6 necessary to raise the amount in the compensation fund to 100
28-7 percent of its floor, up to and including the entire amount in the
28-8 holding fund. The commission shall transfer any remaining balance
28-9 in the holding fund to the smart jobs fund, the skills development
28-10 fund, and the smart jobs rainy day fund in the percentages
28-11 prescribed by Subsection (a) [created under Section 481.154,
28-12 Government Code].
28-13 (c) Notwithstanding Subsection (a), if, on September 1,
28-14 1999, the commission determines that the amount in the compensation
28-15 fund will exceed 100 percent of its floor as computed under Section
28-16 204.061 on the next October 1 computation date, the commission
28-17 shall transfer from the holding fund created under Section 204.122:
28-18 (1) 14 percent of the amount in the holding fund to
28-19 the smart jobs fund created under Section 481.154(a), Government
28-20 Code;
28-21 (2) 66 percent of the amount in the holding fund to
28-22 the skills development fund created under Section 303.003; and
28-23 (3) 20 percent of the amount in the holding fund to
28-24 the smart jobs rainy day fund created under Section 481.154(d),
28-25 Government Code.
28-26 (d) Subsection (c) and this subsection expire October 2,
28-27 1999.
29-1 SECTION 4.04. Section 204.124, Labor Code, is amended to
29-2 read as follows:
29-3 Sec. 204.124. EXPIRATION. This subchapter expires December
29-4 31, 2001 [1999].
29-5 ARTICLE 5. TRANSITION; EFFECTIVE DATE; EMERGENCY
29-6 SECTION 5.01. Section 481.155, Government Code, as amended
29-7 by this Act, applies only to a grant awarded by the Texas
29-8 Department of Economic Development on or after January 1, 2000. A
29-9 grant awarded before that date is governed by the law in effect
29-10 immediately before the effective date of this Act, and the former
29-11 law is continued in effect for that purpose.
29-12 SECTION 5.02. Section 481.159(d), Government Code, as added
29-13 by this Act, applies to reimbursement by an employer of money
29-14 awarded under a grant awarded before, on, or after September 1,
29-15 1999.
29-16 SECTION 5.03. This Act takes effect September 1, 1999.
29-17 SECTION 5.04. The importance of this legislation and the
29-18 crowded condition of the calendars in both houses create an
29-19 emergency and an imperative public necessity that the
29-20 constitutional rule requiring bills to be read on three several
29-21 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. 3657 was passed by the House on April
23, 1999, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 3657 on May 27, 1999, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3657 was passed by the Senate, with
amendments, on May 24, 1999, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor