76R11322 E                           
         By Oliveira, Brimer, Luna, Solis of Cameron,          H.B. No. 3657
            Keffer, et al. 
         Substitute the following for H.B. No. 3657:
         By Luna                                           C.S.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.]
 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)  "High impact development project" means a project
 3-1     that assists employers that relocate operations to this state.
 3-2                 (8)  ["Family wage job" means a job that offers:]
 3-3                       [(A)  wages equal to or greater than the state
 3-4     average weekly wage;]
 3-5                       [(B)  benefits, such as vacation leave, sick
 3-6     leave, and insurance coverage;]
 3-7                       [(C)  reasonable opportunities for continued
 3-8     skill development and career path advancement; and]
 3-9                       [(D)  a substantial likelihood of long-term job
3-10     security.]
3-11                 [(9)]  "In-kind contribution" means a noncash
3-12     contribution of goods and services provided by an employer as all
3-13     or part of the employer's matching share of a grant or project.
3-14                 (9) [(10)]  "Job" means employment on a basis
3-15     customarily considered full-time for the applicable occupation and
3-16     industry.
3-17                 (10)  "Large business" means a business entity that
3-18     employs at least 500 employees.
3-19                 (11)  "Medium business" means a business entity that
3-20     employs more than 99 but fewer than 500 employees.
3-21                 (12)  ["Manufacturing occupation" means an occupation
3-22     that is involved in the mechanical or chemical transformation of
3-23     materials or substances into new products.]
3-24                 [(12)]  "Micro-business" means a [an eligible] business
3-25     entity that employs [with] not more than 20 employees.
3-26                 (13)  "Minimally qualified job" means a job for which
3-27     an application has been submitted and that:
 4-1                       (A)  pays more than the county average weekly
 4-2     wage; and
 4-3                       (B)  is covered by a group health benefit plan
 4-4     for which the business pays at least 80 percent of the premiums or
 4-5     other charges assessed for employee-only coverage under the plan.
 4-6                 (14) [(13)]  "Minority employer" means a business
 4-7     entity at least 51 percent of which is owned by minority group
 4-8     members or, in the case of a corporation, at least 51 percent of
 4-9     the shares of which are owned by minority group members and that:
4-10                       (A)  is managed and, in daily operations, is
4-11     controlled by minority group members; and
4-12                       (B)  is a domestic business entity with a home or
4-13     branch office located in this state and is not a branch or
4-14     subsidiary of a foreign corporation or other foreign business
4-15     entity.
4-16                 (15) [(14)]  "Minority group members" include:
4-17                       (A)  African-Americans;
4-18                       (B)  American Indians;
4-19                       (C)  Asian-Americans;
4-20                       (D)  Mexican-Americans and other Americans of
4-21     Hispanic origin; and
4-22                       (E)  women.
4-23                 (16) [(15)]  "Program" means the smart jobs fund
4-24     program created under this subchapter.
4-25                 (17) [(16)]  "Project" means a specific employment
4-26     training project developed and implemented under this subchapter.
4-27                 (18) [(17)]  "Provider" means a person that provides
 5-1     employment-related training.  The term includes employers, employer
 5-2     associations, labor organizations, community-based organizations,
 5-3     training consultants, public and private schools, technical
 5-4     institutes, junior or community colleges, senior colleges,
 5-5     universities, and proprietary schools, as defined by Section
 5-6     132.001, Education Code.
 5-7                 (19) [(18)]  "Small business" means a business entity
 5-8     that employs more than 20 but fewer than 100 employees [has the
 5-9     meaning assigned that term by Section 481.101].
5-10                 (20) [(19)  "State average weekly wage" means the
5-11     annual average of the average weekly wage of manufacturing
5-12     production workers in this state as of September 1 of each year, as
5-13     determined by the Texas Workforce Commission, adjusted for regional
5-14     variances.]
5-15                 [(20)  "Targeted industry" means an industry that
5-16     promotes high-skill, high-wage jobs using Texas-available material
5-17     and human resources, as determined by the department.]
5-18                 [(21)]  "Trainee" means a participant in a project
5-19     funded under this subchapter.
5-20                 (21) [(22)]  "Wages" means all forms of compensation or
5-21     remuneration, excluding benefits, payable for a specific period to
5-22     an employee for personal services rendered by that employee.
5-23           SECTION 1.02.  Section 481.152, Government Code, is amended
5-24     to read as follows:
5-25           Sec. 481.152.  SMART JOBS FUND PROGRAM; PURPOSE;
5-26     ADMINISTRATION.  (a)  The smart jobs fund program is created in the
5-27     department as a work force development incentive program to enhance
 6-1     employment opportunities for residents of this state and to
 6-2     increase the job skills of the [meet the needs of] existing work
 6-3     force by providing job training assistance to businesses operating
 6-4     [and new industries] in, or relocating to, this state.
 6-5           (b)  The program shall award grants for [give priority to]
 6-6     the creation and retention of [family wage] jobs [and focus on
 6-7     employers in industries] that pay more than the county average
 6-8     weekly wage and are covered by a group health benefit plan for
 6-9     which the business pays at least 80 percent of the premiums or
6-10     other charges assessed for employee-only coverage under the plan
6-11     [promote high-skill, high-wage jobs in high-technology areas and on
6-12     demand occupations that provide those jobs.  At least 60 percent of
6-13     the money spent under the program shall be used for projects that
6-14     assist existing employers].
6-15           (c)  The program shall specifically give priority to:
6-16                 (1)  high impact development projects; and
6-17                 (2)  job training designed to improve the skills of the
6-18     existing work force in this state.
6-19           (d)  The governing board shall develop and adopt by rule a
6-20     scoring system that evaluates the economic impact of grant
6-21     applications and reflects the criteria set forth in this
6-22     subchapter.  The executive director and the governing board shall
6-23     use the scoring system and a competitive process to award grants.
6-24     It is the intent of the legislature that, to the greatest extent
6-25     practicable:
6-26                 (1)  money from the smart jobs fund shall be spent:
6-27                       (A)  in all areas of this state; and
 7-1                       (B)  in approximate proportion to each region's
 7-2     share of the state's population, civilian labor force, unemployed,
 7-3     and minimally qualified jobs; and
 7-4                 (2)  grants shall be awarded to micro-businesses, small
 7-5     businesses, medium businesses, large businesses, and minority
 7-6     employers in a manner proportionate to the number of persons
 7-7     employed by those categories of businesses.
 7-8           (e)  At least 70 percent of the money spent under the program
 7-9     shall be used for projects that assist existing employers located
7-10     in this state by training or retraining employees.  The balance of
7-11     the money spent under the program shall be used for high impact
7-12     development projects.
7-13           (f)  The governing board shall determine appropriate means to
7-14     accomplish the goals of the program.  As necessary to implement
7-15     those goals, the governing board may work in conjunction with the
7-16     Texas Workforce Commission and the comptroller.
7-17           (g)  The department shall administer the program.
7-18           (h) [(d)]  The executive director may employ personnel as
7-19     necessary to administer the program.
7-20           (i)  In implementing provisions under this subchapter
7-21     regarding the classification of this state into regions, the
7-22     department shall use the uniform service regions established by the
7-23     comptroller under Section 120, Article V, Chapter 19, Acts of the
7-24     72nd Legislature, 1st Called Session, 1991 (the General
7-25     Appropriations Act).
7-26           SECTION 1.03.  Section 481.153, Government Code, is amended
7-27     to read as follows:
 8-1           Sec. 481.153.  RULES.  The governing [policy] board shall
 8-2     adopt rules as necessary to implement the program.
 8-3           SECTION 1.04.  Section 481.154, Government Code, is amended
 8-4     to read as follows:
 8-5           Sec. 481.154.  FUNDING; RAINY DAY FUND.  (a)  The smart jobs
 8-6     fund is established as a special trust fund in the custody of the
 8-7     comptroller separate and apart from all public money or funds of
 8-8     this state.  The fund is composed of:
 8-9                 (1)  money transferred into the fund under Section
8-10     204.123, Labor Code;
8-11                 (2)  gifts, grants, and other donations received by the
8-12     department for the fund; and
8-13                 (3)  any amounts appropriated by the legislature for
8-14     the program from the general revenue fund.
8-15           (b)  The program is funded through the smart jobs fund.
8-16           (c)  Money in the smart jobs fund may be used for program
8-17     administration, marketing expenses, and evaluation of the program.
8-18     These costs of the department in any fiscal year may not exceed the
8-19     lesser of:
8-20                 (1)  five percent of the total amount appropriated for
8-21     the program for that fiscal year; or
8-22                 (2)  $1.5 million.
8-23           (d)  The smart jobs rainy day fund is established as a
8-24     special trust fund in the custody of the comptroller separate and
8-25     apart from all public money or funds of this state.  The smart jobs
8-26     rainy day fund is composed of:
8-27                 (1)  money transferred to that fund as provided by
 9-1     Section 204.123, Labor Code;
 9-2                 (2)  money returned by employers or recouped by the
 9-3     program under Section 481.159(d); and
 9-4                 (3)  any other money received by the governing board
 9-5     for deposit in that fund.
 9-6           (e)  The governing board may authorize the executive director
 9-7     to use money in the smart jobs rainy day fund if:
 9-8                 (1)  the governing board determines, after consulting
 9-9     with the comptroller, that the smart jobs fund contains
9-10     insufficient money to cover the amounts appropriated by the
9-11     legislature to operate the program; and
9-12                 (2)  the Texas Workforce Commission has determined
9-13     that:
9-14                       (A)  the unemployment rate in this state is 125
9-15     percent of the average unemployment rate in this state during the
9-16     preceding three years; or
9-17                       (B)  a severe economic dislocation is occurring
9-18     in a specific region of this state.
9-19           (f)  The Texas Workforce Commission by rule shall define
9-20     "severe economic dislocation" for purposes of Subsection (e).  In
9-21     adopting a definition, the commission shall consider
9-22     employment-related factors, including:
9-23                 (1)  massive layoffs in a region of this state caused
9-24     by:
9-25                       (A)  the closure of military bases;
9-26                       (B)  the effect of the implementation of the
9-27     North American Free Trade Agreement;
 10-1                      (C)  employer relocations; or
 10-2                      (D)  other analogous situations; and
 10-3                (2)  the number of jobs lost in a region compared to
 10-4    the region's usual rates of employment.
 10-5          (g)  If the governing board approves the use of money from
 10-6    the smart jobs rainy day fund because of a severe economic
 10-7    dislocation occurring in a specific region of the state, the
 10-8    executive director may use the money allocated from the smart jobs
 10-9    rainy day fund solely for projects located in the affected region.
10-10          (h)  Notwithstanding any other provision of this section, the
10-11    total combined amount spent in any fiscal year from the smart jobs
10-12    fund and the smart jobs rainy day fund may not exceed the amount
10-13    appropriated by the legislature for that fiscal year for the
10-14    operation of the smart jobs fund program.
10-15          (i)  If, during any three consecutive months, the balance in
10-16    the smart jobs fund or the smart jobs rainy day fund exceeds 0.15
10-17    percent of the total taxable wages for the four calendar quarters
10-18    ending the preceding June 30, as computed under Section 204.062(c),
10-19    Labor Code, the executive director shall immediately transfer the
10-20    excess from the applicable fund to the Unemployment Compensation
10-21    Fund created under Section 203.021, Labor Code.
10-22          SECTION 1.05.  Section 481.155, Government Code, is amended
10-23    to read as follows:
10-24          Sec. 481.155.  GRANTS.  (a)  The executive director and the
10-25    governing board may award grants for projects that meet the
10-26    requirements of this chapter.  [It is the intent of the legislature
10-27    that, to the greatest extent practicable, money from the smart jobs
 11-1    fund shall be spent in all areas of the state. The executive
 11-2    director may award a grant or a  combination of grants in any
 11-3    fiscal year to a single employer in excess of $1,500,000 or at a
 11-4    rate greater than 10 percent of the  annual wages of the new or
 11-5    existing job being created or retained with the grant only if:]
 11-6                [(1)  the employer locates or expands in an enterprise
 11-7    zone;]
 11-8                [(2)  the employer locates or expands in an adversely
 11-9    affected defense-dependent community;]
11-10                [(3)  the employer locates or expands in an area having
11-11    an unemployment rate 1-1/2 times greater than the statewide average
11-12    at the time of the application;]
11-13                [(4)  the employer locates or expands in a county with
11-14    a population of less than 75,000;]
11-15                [(5)  at least 25 percent of the employees hired or
11-16    retained by the employer are economically disadvantaged individuals
11-17    as defined by Section 2303.402(c); or]
11-18                [(6)  the employer is a small business or a
11-19    micro-business.]
11-20          (b)  The governing board shall make the final award decision
11-21    for a grant application:
11-22                (1)  regarding a high impact development project; or
11-23                (2)  requesting an award of at least $250,000. [The
11-24    executive director shall attempt to ensure that at least 20 percent
11-25    of the total dollar amount of grants awarded under the program are
11-26    awarded to minority employers.]
11-27          (c)  [The program is job-driven.]  A grant may not be awarded
 12-1    unless each employer participating in the project certifies that:
 12-2                (1)  a job or job opening exists or will exist at the
 12-3    end of the project for which the grant is sought; and
 12-4                (2)  the job or job opening will be filled by a
 12-5    participant in the project.
 12-6          (d)  A grant may not be awarded unless each employer
 12-7    participating in the project certifies that each job under the
 12-8    project is covered by a group health benefit plan for which the
 12-9    business pays at least 80 percent of the premiums or other charges
12-10    assessed for employee-only coverage under the plan.
12-11          (e)  A grant may not be awarded for a project under this
12-12    section unless each employer participating in the project certifies
12-13    that the starting wage for a new job created through the project
12-14    will be equal to or greater than the county average weekly
12-15    [prevailing] wage for the county in which the job or project is
12-16    located [that occupation in the local labor market area] and that
12-17    the wage for a job existing on the date that the project is
12-18    scheduled to begin will be increased to the greater of:
12-19                (1)  three percent for a micro-business or small
12-20    business or five percent for a business that is not a
12-21    micro-business or small business over the wage in effect on the day
12-22    before the date on which the project is scheduled to begin for that
12-23    job; or
12-24                (2)  100 percent of the county average weekly
12-25    [prevailing] wage for the county in which the job or project is
12-26    located [that occupation in the local labor market area].
12-27          (f) [(e)]  An employer may apply for a grant under this
 13-1    chapter. An[, and an] employer [who is a micro-business] may
 13-2    request a modification of the requirements provided by Subsection
 13-3    (e) [(d)] and Section 481.159(c), if[:]
 13-4                [(1)  the employer is required to reduce or eliminate
 13-5    the employer's work force because of reductions in overall
 13-6    employment within an industry;]
 13-7                [(2)  a substantial change in the skills required to
 13-8    continue the employer's business exists because of technological
 13-9    changes; or]
13-10                [(3)  other] reasonable factors exist for the
13-11    modification, as determined by the executive director[, exist].
13-12          (g) [(f)]  Grants awarded under this section for which the
13-13    executive director has modified the requirements of Subsection (e)
13-14    [(d)] may not, in any fiscal year, exceed 10 percent of the total
13-15    dollar amount of grants awarded under the program in that year.
13-16          (h) [(g)]  Unless modified by the executive director under
13-17    rules adopted by the governing [policy] board, a grant may not be
13-18    awarded for a project unless each employer participating in the
13-19    project certifies that it will continue to spend on nonmanagerial
13-20    training an amount from private sources equal to the average amount
13-21    spent by that employer on such training for the most recent
13-22    two-year period.
13-23          (i) [(h)]  A grant may not be awarded for a project if the
13-24    project will impair existing contracts for services or collective
13-25    bargaining agreements, except that a project inconsistent with the
13-26    terms of a collective bargaining agreement may be undertaken with
13-27    the written concurrence of the collective bargaining unit and the
 14-1    employer or employers who are parties to the agreement.
 14-2          [(i)  During each state fiscal year the executive director
 14-3    shall attempt to ensure that at least 50 percent of the  total
 14-4    dollar amount of grants awarded under this section is awarded to
 14-5    small businesses, as defined by Section 481.101.]
 14-6          [(j)  In awarding a grant under this section, the executive
 14-7    director shall give priority to a project that is located in an
 14-8    enterprise zone as defined by Section 2303.003.]
 14-9          SECTION 1.06.  Section 481.156, Government Code, is amended
14-10    to read as follows:
14-11          Sec. 481.156.  GRANT APPLICATION; AWARDING OF GRANTS.  (a)
14-12    An employer [The following] may apply for a grant under this
14-13    subchapter.  The executive director shall establish multiple
14-14    application review and grant award tracks as provided by this
14-15    section.
14-16          (b)  The department may award grants to:
14-17                (1)  one or more employers to secure training [for
14-18    demand occupations, emerging occupations, or manufacturing
14-19    occupations];
14-20                (2)  one or more employers acting in partnership with
14-21    an employer organization, labor organization, or community-based
14-22    organization to secure training [for demand occupations, emerging
14-23    occupations, or manufacturing occupations]; or
14-24                (3)  one or more employers acting in partnership with a
14-25    consortium composed of more than one provider to secure training
14-26    [for demand occupations, emerging occupations, or manufacturing
14-27    occupations].
 15-1          (c) [(b)]  A grant application must be filed with the
 15-2    department in a form approved by the executive director.
 15-3    Applications submitted by medium and large businesses [and] must
 15-4    include a complete business and training  plan, including:
 15-5                (1)  the number and kind of jobs available;
 15-6                (2)  the skills and competencies required for the
 15-7    identified jobs;
 15-8                (3)  the wages to be paid to trainees on successful
 15-9    completion of the project;
15-10                (4)  the goals, objectives, and outcome measures for
15-11    the project;
15-12                (5)  the proposed curriculum for the project; and
15-13                (6)  the projected cost per person enrolled, trained,
15-14    hired, and retained in employment.
15-15          (d)  The executive director shall establish a quarterly
15-16    competitive application process for grant applications:
15-17                (1)  submitted by medium and large businesses; or
15-18                (2)  requesting an award of $250,000 or more.
15-19          (e)  The governing board shall ensure that the complexity of
15-20    the application process appropriately corresponds to the size of
15-21    the business and the amount of funds awarded under the grant.  The
15-22    executive director shall  establish a simplified application
15-23    process for grant applications from small businesses and
15-24    micro-businesses and shall ensure that the application process for
15-25    small businesses and micro-businesses is an open and ongoing
15-26    process.
15-27          (f) [(c)]  The department may provide assistance with the
 16-1    application process to all applicants and shall give priority to
 16-2    assisting applicants who are small businesses or micro-businesses
 16-3    [in formulating the business and training plan required under
 16-4    Subsection (b)].
 16-5          (g) [(d)]  The department shall minimize the length of the
 16-6    application form and shall simplify as much as possible the review
 16-7    process for grant applications.
 16-8          (h)  The department shall notify each applicant as to whether
 16-9    the application is complete not later than the fifth business day
16-10    after the date on which the application is received by the
16-11    department.  [(e)]  The executive director shall act on a completed
16-12    application requesting an award of less than $250,000 not later
16-13    than the 30th day after the date on which the department notifies
16-14    the applicant that the application is complete [filed with the
16-15    department].
16-16          SECTION 1.07.  Subchapter J, Chapter 481, Government Code, is
16-17    amended by adding Section 481.1565 to read as follows:
16-18          Sec. 481.1565.  CONFIDENTIALITY REQUIREMENTS.  (a)
16-19    Information provided by an applicant in a grant application is
16-20    confidential information for purposes of Chapter 552 only as
16-21    provided by this section.
16-22          (b)  Information provided by an applicant whose application
16-23    is denied is confidential information for purposes of Chapter 552.
16-24          (c)  Information provided by an applicant whose application
16-25    is granted and who accepts an award is confidential information for
16-26    purposes of Chapter 552 only if the information would otherwise be
16-27    confidential under the terms of that chapter.
 17-1          SECTION 1.08.  Section 481.157(b), Government Code, is
 17-2    amended to read as follows:
 17-3          (b)  The governing [policy] board may adopt rules modifying
 17-4    the requirements of Subsection (a)  for employers that are small
 17-5    businesses or micro-businesses [with fewer than 50 employees] and
 17-6    may also adopt rules modifying the requirements of Subsection (a)
 17-7    for projects that provide significant economic benefits to an
 17-8    entire region of the state.
 17-9          SECTION 1.09.  Section 481.159, Government Code, is amended
17-10    by amending Subsections (a)  and (c) and adding Subsection (d) to
17-11    read as follows:
17-12          (a)  The executive director or governing board, as
17-13    applicable, may approve any project that meets the requirements of
17-14    this subchapter.  If [the executive director approves] a project is
17-15    approved and funds are available, the department shall enter into a
17-16    contract with the grant applicant and with each employer
17-17    participating in the project.  The contract must specify those
17-18    skills and competencies to be gained as a result of the project.
17-19          (c)  Each contract must provide a schedule for payment of
17-20    smart jobs fund money.  Twenty-five percent of allowable
17-21    expenditures shall be withheld by the department for 90 days after
17-22    the date of completion of the contract.  If at least 85 percent of
17-23    the trainees in the project have been retained in employment for
17-24    that 90-day period, other than trainees who leave the employment
17-25    voluntarily for better-paying jobs, and have successfully achieved
17-26    the skills and competencies, wage requirements, and other
17-27    contractual obligations, the amount of allowable expenditures
 18-1    withheld shall be remitted to the employer.  If there is a negative
 18-2    balance, the employer is liable for the amount of the negative
 18-3    balance and shall remit that amount to the department not later
 18-4    than the 30th day after the date on which the employer is notified
 18-5    of the negative balance by the department.
 18-6          (d)  Each contract must state the term of the grant award.  A
 18-7    grant recipient who does not use all money awarded under the grant
 18-8    for the prescribed purpose within the allotted term shall reimburse
 18-9    the program by submitting the appropriate amount to the executive
18-10    director not later than the 30th day after the expiration date of
18-11    the term of the grant award.  The executive director shall remit
18-12    money received under this subsection to the comptroller for deposit
18-13    in the smart jobs rainy day fund.
18-14          SECTION 1.10.  Section 481.160, Government Code, is amended
18-15    by amending Subsection (b) and adding Subsection (c) to read as
18-16    follows:
18-17          (b)  The annual report must include for that fiscal year:
18-18                (1)  the total number of minimally qualified jobs under
18-19    the program reported by region of the state and the percentage that
18-20    number represents of the total number of minimally qualified jobs
18-21    received on a statewide basis;
18-22                (2)  the number of employers receiving grants under the
18-23    program reported by region of the state and the percentage that
18-24    number represents of the total number of employers receiving grants
18-25    under the program on a statewide basis;
18-26                (3) [(2)]  the total amount of grants awarded reported
18-27    by region of the state and the percentage that amount represents of
 19-1    the total amount of grants awarded on a statewide basis;
 19-2                (4)  the total amount of money awarded in each region
 19-3    of the state and the percentage that amount represents of the total
 19-4    amount of money awarded on a statewide basis;
 19-5                (5)  a comparison of the percentage of total dollars
 19-6    awarded to each region versus each region's percentage of the
 19-7    state's population, civilian labor force, unemployed, and minimally
 19-8    qualified jobs;
 19-9                (6) [(3)]  the value, expressed in dollars and as a
19-10    percentage of total training expenditures, of matching
19-11    contributions made by employers;
19-12                (7)  the total number of grant applicants under the
19-13    program, classified by micro-businesses, small businesses, medium
19-14    businesses, and large businesses;
19-15                (8) [(4)]  the number of [small] businesses, classified
19-16    by micro-businesses, small businesses, medium businesses, and large
19-17    businesses [as defined by Section 481.101(3)], that receive grants
19-18    under the program reported by region of the state and business size
19-19    and the percentage that number represents of the total number of
19-20    each of those categories of businesses receiving grants under the
19-21    program on a statewide basis;
19-22                (9)  [and] the total amount of money [the grants]
19-23    awarded to micro-businesses, small businesses, medium businesses,
19-24    and large businesses, reported by region of the state and business
19-25    size, and the percentage that amount represents of the total amount
19-26    of money awarded to those businesses on a statewide basis;
19-27                (10) [(5)  the number of businesses located in
 20-1    enterprise zones, as that term is defined by Chapter 2303, that
 20-2    receive grants under the program and the total amount of the grants
 20-3    awarded to those businesses;]
 20-4                [(6)  the geographical distribution of employers
 20-5    receiving grants under the program;]
 20-6                [(7)]  the total number of jobs created, enhanced, or
 20-7    retained under the program:
 20-8                      (A)[, reported] by region of the state;
 20-9                      (B)  [and] by occupation; and
20-10                      (C)  whether attributable to:
20-11                            (i)  relocation of businesses to this
20-12    state, including the percentage the number attributable to the
20-13    relocation of businesses represents of the total number of jobs
20-14    created, enhanced, or retained under the program on a statewide
20-15    basis; or
20-16                            (ii)  training or retraining of employees
20-17    of existing employers, including the percentage the number
20-18    attributable to the training or retraining of employees of existing
20-19    employers represents of the total number of jobs created, enhanced,
20-20    or retained under the program on a statewide basis;
20-21                (11) [(8)]  the wage levels of trainees entering or
20-22    returning to the workforce, broken down by current employees
20-23    undergoing retraining and new hires, at three months and one year
20-24    after the conclusion of their training;
20-25                (12) [(9)]  the number and percentage of participating
20-26    employers that provide workers' compensation insurance coverage and
20-27    the number and percentage of employees covered;
 21-1                (13) [(10)]  the number and percentage of participating
 21-2    employers that offer health care insurance coverage and the number
 21-3    and percentage of employees covered;
 21-4                (14) [(11)]  the number and percentage of women,
 21-5    disabled persons, [employers] and minority group members
 21-6    [employers] receiving grants under the program as employers,
 21-7    participating as trainees in training projects, or participating in
 21-8    the program as providers [and the total amount of the grants
 21-9    awarded], broken out by group; and
21-10                (15)  a list of modifications granted under Section
21-11    481.155(f), the name of the project for which the modification was
21-12    granted, and the reason the executive director granted the
21-13    modification [(12)  the number and percentage of women, minority
21-14    group members, and disabled individuals participating as trainees
21-15    in training projects, broken out by group; and]
21-16                [(13)  the number and percentage of women private
21-17    providers and private providers who are minority group members
21-18    utilized by employers in training projects, broken out by group].
21-19          (c)  In addition to the information required under Subsection
21-20    (b), the department shall include in the annual report, for each
21-21    region of the state in which a grant is awarded, the percentage
21-22    paid by employers in that region of the total amount of
21-23    unemployment insurance contributions paid by employers during the
21-24    preceding calendar year.
21-25          SECTION 1.11.  Subchapter J, Chapter 481, Government Code, is
21-26    amended by adding Section 481.1605 to read as follows:
21-27          Sec. 481.1605.  PERFORMANCE EVALUATION.  (a)  The governing
 22-1    board shall provide for the implementation of a biennial
 22-2    performance evaluation of the smart jobs fund program.  The
 22-3    evaluation must include:
 22-4                (1)  an analysis of the wage levels of trainees one
 22-5    year and three years after the end of the trainees' participation
 22-6    in the program;
 22-7                (2)  information relating to the number of trainees
 22-8    employed in the same occupation after one year and three years;
 22-9                (3)  a survey and analysis of program satisfaction from
22-10    former grant recipients;
22-11                (4)  a description of the overall impact of the program
22-12    on economic development in this state in general and on
22-13    economically distressed areas of this state in particular; and
22-14                (5)  any additional information determined to be
22-15    necessary by the governing board to analyze the performance and
22-16    impact of the program.
22-17          (b)  The governing board may contract with the comptroller or
22-18    another state agency to perform the evaluation and may submit
22-19    requests for proposals to contract with a private vendor for
22-20    performance of the evaluation.  The governing board may enter into
22-21    contracts, memoranda of understanding, or interagency agreements as
22-22    necessary to implement this section.
22-23          (c)  In performing the evaluation required by this section,
22-24    the person performing the evaluation shall also analyze the
22-25    efficiency of the program and the use of administrative funds by
22-26    the program.
22-27          (d)  The department, the Texas Workforce Commission, and the
 23-1    State Occupational Information Coordinating Committee shall
 23-2    cooperate with the person who performs the evaluation in
 23-3    implementing this section.
 23-4          (e)  The governing board shall pay the costs of the
 23-5    evaluation from money authorized under Section 481.154(c).  No
 23-6    additional funds may be spent on the performance of the evaluation.
 23-7          SECTION 1.12.  Section 481.161, Government Code, is amended
 23-8    to read as follows:
 23-9          Sec. 481.161.  EXPIRATION.  This subchapter expires December
23-10    31, 2001 [1999].
23-11                    ARTICLE 2.  SKILLS DEVELOPMENT FUND
23-12          SECTION 2.01.  Section 303.003(a), Labor Code, is amended to
23-13    read as follows:
23-14          (a)  To achieve the purposes of this chapter, the skills
23-15    development fund is created.  The fund is composed of:
23-16                (1)  money transferred into the fund under Section
23-17    204.123; and
23-18                (2)  any amounts appropriated by the legislature for
23-19    the purpose of this chapter from [money in] the general revenue
23-20    fund.
23-21                     ARTICLE 3.  CONFORMING AMENDMENTS
23-22          SECTION 3.01.  Section 204.0065, Labor Code, is amended to
23-23    read as follows:
23-24          Sec. 204.0065.  TEMPORARY INITIAL CONTRIBUTION RATE.
23-25    Notwithstanding Section 204.006, on and after January 1, 1994, a
23-26    person's contribution rate shall be two and six-tenths percent
23-27    until the date the experience rate computed under Section 204.041
 24-1    takes effect for the employer.  This section expires December 31,
 24-2    2001 [1999].
 24-3          SECTION 3.02.  Section 204.0625, Labor Code, is amended to
 24-4    read as follows:
 24-5          Sec. 204.0625.  TEMPORARY ADJUSTMENT TO REPLENISHMENT TAX
 24-6    RATE.  On and after January 1, 1994, the replenishment tax rate
 24-7    computed under Section 204.062 shall be adjusted to a rate computed
 24-8    by subtracting 0.1 from the quotient computed under Section
 24-9    204.062(a).  This section expires December 31, 2001 [1999].
24-10          SECTION 3.03.  Section 204.123, Labor Code, is amended to
24-11    read as follows:
24-12          Sec. 204.123.  TRANSFER TO SMART JOBS FUNDS, SKILLS
24-13    DEVELOPMENT FUND, AND COMPENSATION FUND.  (a)  If, on September 1
24-14    of a year, the commission determines that the amount in the
24-15    compensation fund will exceed 100 percent of its floor as computed
24-16    under Section 204.061 on the next October 1 computation date, the
24-17    commission shall transfer from [the amount in] the holding fund
24-18    created under Section 204.122:
24-19                (1)  50 percent of the amount in the holding fund to
24-20    the smart jobs fund created under Section 481.154(a) [481.154],
24-21    Government Code;
24-22                (2)  30 percent of the amount in the holding fund to
24-23    the skills development fund created under Section 303.003; and
24-24                (3)  20 percent of the amount in the holding fund to
24-25    the smart jobs rainy day fund created under Section 481.154(d),
24-26    Government Code.
24-27          (b)  If, on September 1 of a year, the commission determines
 25-1    that the amount in the compensation fund will be at or below 100
 25-2    percent of its floor as computed under Section 204.061 on the next
 25-3    October 1 computation date, the commission shall transfer to the
 25-4    compensation fund as much of the amount in the holding fund as is
 25-5    necessary to raise the amount in the compensation fund to 100
 25-6    percent of its floor, up to and including the entire amount in the
 25-7    holding fund.  The commission shall transfer any remaining balance
 25-8    in the holding fund to the smart jobs fund, the skills development
 25-9    fund, and the smart jobs rainy day fund in the percentages
25-10    prescribed by Subsection (a) [created under Section 481.154,
25-11    Government Code].
25-12          (c)  Notwithstanding Subsection (a), if, on September 1,
25-13    1999, the commission determines that the amount in the compensation
25-14    fund will exceed 100 percent of its floor as computed under Section
25-15    204.061 on the next October 1 computation date, the commission
25-16    shall transfer from the holding fund created under Section 204.122:
25-17                (1)  14 percent of the amount in the holding fund to
25-18    the smart jobs fund created under Section 481.154(a), Government
25-19    Code;
25-20                (2)  66 percent of the amount in the holding fund to
25-21    the skills development fund created under Section 303.003; and
25-22                (3)  20 percent of the amount in the holding fund to
25-23    the smart jobs rainy day fund created under Section 481.154(d),
25-24    Government Code.
25-25          (d)  Subsection (c) and this subsection expire October 2,
25-26    1999.
25-27          SECTION 3.04.  Section 204.124, Labor Code, is amended to
 26-1    read as follows:
 26-2          Sec. 204.124.  EXPIRATION.  This subchapter expires December
 26-3    31, 2001 [1999].
 26-4             ARTICLE 4.  TRANSITION; EFFECTIVE DATE; EMERGENCY
 26-5          SECTION 4.01.  Section 481.155, Government Code, as amended
 26-6    by this Act, applies only to a grant awarded by the Texas
 26-7    Department of Economic Development on or after January  1, 2000.  A
 26-8    grant awarded before that date is governed by the law in effect
 26-9    immediately before the effective date of this Act, and the former
26-10    law is continued in effect for that purpose.
26-11          SECTION 4.02.  This Act takes effect September 1, 1999.
26-12          SECTION 4.03.  The importance of this legislation and the
26-13    crowded condition of the calendars in both houses create an
26-14    emergency and an imperative public necessity that the
26-15    constitutional rule requiring bills to be read on three several
26-16    days in each house be suspended, and this rule is hereby suspended.