1-1 By: Oliveira, et al. (Senate Sponsor - Sibley) H.B. No. 3657
1-2 (In the Senate - Received from the House April 26, 1999;
1-3 April 27, 1999, read first time and referred to Committee on
1-4 Economic Development; May 14, 1999, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 4, Nays
1-6 0; May 14, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 3657 By: Sibley
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the continuation, funding, and operation of certain
1-11 workforce development programs.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 ARTICLE 1. SMART JOBS FUND PROGRAM
1-14 SECTION 1.01. Section 481.151, Government Code, is amended
1-15 to read as follows:
1-16 Sec. 481.151. DEFINITIONS. In this subchapter:
1-17 (1) "County average weekly wage" means the average
1-18 weekly wage paid by all employers in a county that are covered by
1-19 unemployment compensation insurance, as determined by the Texas
1-20 Workforce Commission for the most recent period for which data is
1-21 available. ["Business development" includes relocation, expansion,
1-22 turnover, diversification, or technological change.]
1-23 (2) ["Demand occupation" means an occupation in which,
1-24 as a result of business development, there are or will be positive
1-25 growth-to-replacement ratios within the next 12 to 24 months,
1-26 according to the best available sources of state and local labor
1-27 market information.]
1-28 [(3) "Emerging occupation" means an occupation that
1-29 arises from forces related to technological changes in the
1-30 workplace and the work of which cannot be performed by workers from
1-31 other occupations without at least two months of customized
1-32 education or training.]
1-33 [(4)] "Employee" means an individual who performs
1-34 services for another under a contract of hire, whether express or
1-35 implied, or oral or written.
1-36 (3) [(5)] "Employer" means a person that employs one
1-37 or more employees.
1-38 (4) [(6)] "Executive director" means the executive
1-39 director of the department.
1-40 (5) [(7)] "Existing employer" means an employer that:
1-41 (A) has been liable to pay contributions under
1-42 Subtitle A, Title 4, Labor Code, [(Texas Unemployment Compensation
1-43 Act)] for more than one year;
1-44 (B) has employees; and
1-45 (C) is in compliance with the reporting and
1-46 payment requirements of Subtitle A, Title 4, Labor Code [that Act],
1-47 as determined by the Texas Workforce Commission.
1-48 (6) "Group health benefit plan" means:
1-49 (A) a health plan provided by a health
1-50 maintenance organization established under the Texas Health
1-51 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
1-52 Code);
1-53 (B) a health benefit plan approved by the
1-54 commissioner of insurance; or
1-55 (C) a self-funded or self-insured employee
1-56 welfare benefit plan that provides health benefits and is
1-57 established in accordance with the Employee Retirement Income
1-58 Security Act of 1974 (29 U.S.C. Section 1001 et seq.), as amended.
1-59 (7) [(8) "Family wage job" means a job that offers:]
1-60 [(A) wages equal to or greater than the state
1-61 average weekly wage;]
1-62 [(B) benefits, such as vacation leave, sick
1-63 leave, and insurance coverage;]
1-64 [(C) reasonable opportunities for continued
2-1 skill development and career path advancement; and]
2-2 [(D) a substantial likelihood of long-term job
2-3 security.]
2-4 [(9)] "In-kind contribution" means a noncash
2-5 contribution of goods and services provided by an employer as all
2-6 or part of the employer's matching share of a grant or project.
2-7 (8) [(10)] "Job" means employment on a basis
2-8 customarily considered full-time for the applicable occupation and
2-9 industry.
2-10 (9) "Large business" means a business entity that
2-11 employs at least 500 employees.
2-12 (10) "Medium business" means a business entity that
2-13 employs more than 99 but fewer than 500 employees.
2-14 (11) ["Manufacturing occupation" means an occupation
2-15 that is involved in the mechanical or chemical transformation of
2-16 materials or substances into new products.]
2-17 [(12)] "Micro-business" means a [an eligible] business
2-18 entity that employs [with] not more than 20 employees.
2-19 (12) [(13)] "Minority employer" means a business
2-20 entity at least 51 percent of which is owned by minority group
2-21 members or, in the case of a corporation, at least 51 percent of
2-22 the shares of which are owned by minority group members and that:
2-23 (A) is managed and, in daily operations, is
2-24 controlled by minority group members; and
2-25 (B) is a domestic business entity with a home or
2-26 branch office located in this state and is not a branch or
2-27 subsidiary of a foreign corporation or other foreign business
2-28 entity.
2-29 (13) [(14)] "Minority group members" include:
2-30 (A) African-Americans;
2-31 (B) American Indians;
2-32 (C) Asian-Americans;
2-33 (D) Mexican-Americans and other Americans of
2-34 Hispanic origin; and
2-35 (E) women.
2-36 (14) [(15)] "Program" means the smart jobs fund
2-37 program created under this subchapter.
2-38 (15) [(16)] "Project" means a specific employment
2-39 training project developed and implemented under this subchapter.
2-40 (16) [(17)] "Provider" means a person that provides
2-41 employment-related training. The term includes employers, employer
2-42 associations, labor organizations, community-based organizations,
2-43 training consultants, public and private schools, technical
2-44 institutes, junior or community colleges, senior colleges,
2-45 universities, and proprietary schools, as defined by Section
2-46 132.001, Education Code.
2-47 (17) "Qualified job" means a job for which an
2-48 application has been submitted and that:
2-49 (A) pays at least 100 percent of the county
2-50 average weekly wage; and
2-51 (B) is covered by a group health benefit plan
2-52 for which the business offers to pay at least 50 percent of the
2-53 premiums or other charges assessed for employee-only coverage under
2-54 the plan, regardless of whether an employee may voluntarily waive
2-55 the coverage.
2-56 (18) "Small business" means a business entity that
2-57 employs more than 20 but fewer than 100 employees [has the meaning
2-58 assigned that term by Section 481.101].
2-59 (19) ["State average weekly wage" means the annual
2-60 average of the average weekly wage of manufacturing production
2-61 workers in this state as of September 1 of each year, as determined
2-62 by the Texas Workforce Commission, adjusted for regional variances.]
2-63 [(20) "Targeted industry" means an industry that
2-64 promotes high-skill, high-wage jobs using Texas-available material
2-65 and human resources, as determined by the department.]
2-66 [(21)] "Trainee" means a participant in a project
2-67 funded under this subchapter.
2-68 (20) [(22)] "Wages" means all forms of compensation or
2-69 remuneration, excluding benefits, payable for a specific period to
3-1 an employee for personal services rendered by that employee.
3-2 SECTION 1.02. Section 481.152, Government Code, is amended
3-3 to read as follows:
3-4 Sec. 481.152. SMART JOBS FUND PROGRAM; PURPOSE;
3-5 ADMINISTRATION. (a) The smart jobs fund program is created in the
3-6 department as a work force development incentive program to enhance
3-7 employment opportunities for residents of this state and to
3-8 increase the job skills of the [meet the needs of] existing work
3-9 force by providing job training assistance to businesses operating
3-10 [and new industries] in, or relocating to, this state.
3-11 (b) The program shall award grants for [give priority to]
3-12 the creation and retention of qualified [family wage] jobs [and
3-13 focus on employers in industries that promote high-skill, high-wage
3-14 jobs in high-technology areas and on demand occupations that
3-15 provide those jobs]. At least 60 percent of the money spent under
3-16 the program shall be used for projects that assist existing
3-17 employers.
3-18 (c) The governing board by rule shall develop and adopt a
3-19 scoring system that evaluates the economic impact of grant
3-20 applications and reflects the criteria set forth in this
3-21 subchapter. The executive director shall use the scoring system
3-22 and a competitive process to award grants. It is the intent of the
3-23 legislature that, to the greatest extent practicable:
3-24 (1) money from the smart jobs fund be spent:
3-25 (A) in all areas of this state; and
3-26 (B) in approximate proportion to each region's
3-27 share of the state's population, civilian labor force, unemployed,
3-28 and submission of grant applications for qualified jobs; and
3-29 (2) grants shall be awarded to micro-businesses, small
3-30 businesses, medium businesses, large businesses, and minority
3-31 employers in a manner proportionate to the number of persons
3-32 employed by those categories of businesses.
3-33 (d) The governing board and the department shall determine
3-34 appropriate means to accomplish the goals of the program. As
3-35 necessary to implement those goals, the governing board and the
3-36 department may work in conjunction with the Texas Workforce
3-37 Commission and the comptroller.
3-38 (e) The department shall administer the program.
3-39 (f) [(d)] The executive director may employ personnel as
3-40 necessary to administer the program.
3-41 (g) In implementing provisions under this subchapter
3-42 regarding the classification of this state into regions, the
3-43 department shall use the uniform service regions established by the
3-44 comptroller under Section 120, Article V, Chapter 19, Acts of the
3-45 72nd Legislature, 1st Called Session, 1991 (the General
3-46 Appropriations Act).
3-47 SECTION 1.03. Section 481.153, Government Code, is amended
3-48 to read as follows:
3-49 Sec. 481.153. RULES. The governing [policy] board shall
3-50 adopt rules as necessary to implement the program.
3-51 SECTION 1.04. Section 481.154, Government Code, is amended
3-52 to read as follows:
3-53 Sec. 481.154. FUNDING; RAINY DAY FUND. (a) The smart jobs
3-54 fund is established as a special trust fund in the custody of the
3-55 comptroller separate and apart from all public money or funds of
3-56 this state. The fund is composed of:
3-57 (1) money transferred into the fund under Section
3-58 204.123, Labor Code;
3-59 (2) gifts, grants, and other donations received by the
3-60 department for the fund; and
3-61 (3) any amounts appropriated by the legislature for
3-62 the program from the general revenue fund.
3-63 (b) The program is funded through the smart jobs fund.
3-64 (c) Money in the smart jobs fund may be used for program
3-65 administration, marketing expenses, and evaluation of the program.
3-66 These costs of the department in any fiscal year may not exceed the
3-67 lesser of:
3-68 (1) five percent of the total amount appropriated for
3-69 the program for that fiscal year; or
4-1 (2) $1.5 million.
4-2 (d) The smart jobs rainy day fund is established as a
4-3 special trust fund in the custody of the comptroller separate and
4-4 apart from all public money or funds of this state. The smart jobs
4-5 rainy day fund is composed of:
4-6 (1) money transferred to that fund as provided by
4-7 Section 204.123, Labor Code;
4-8 (2) money returned by employers or recouped by the
4-9 program under Section 481.159(d); and
4-10 (3) any other money received by the governing board
4-11 for deposit in that fund.
4-12 (e) The governing board may authorize the executive director
4-13 to use money in the smart jobs rainy day fund if:
4-14 (1) the governing board determines, after consulting
4-15 with the comptroller, that the smart jobs fund contains
4-16 insufficient money to cover the amounts appropriated by the
4-17 legislature to operate the program; and
4-18 (2) the Texas Workforce Commission has determined
4-19 that:
4-20 (A) the unemployment rate in this state is 125
4-21 percent of the average unemployment rate in this state during the
4-22 preceding three years; or
4-23 (B) a severe economic dislocation is occurring
4-24 in a specific region of this state.
4-25 (f) The Texas Workforce Commission by rule shall define
4-26 "severe economic dislocation" for purposes of Subsection (e). In
4-27 adopting a definition, the commission shall consider
4-28 employment-related factors, including:
4-29 (1) massive layoffs in a region of this state caused
4-30 by:
4-31 (A) the closure of military bases;
4-32 (B) the effect of the implementation of the
4-33 North American Free Trade Agreement;
4-34 (C) employer relocations; or
4-35 (D) other analogous situations; and
4-36 (2) the number of jobs lost in a region compared to
4-37 the region's usual rates of employment.
4-38 (g) If the governing board approves the use of money from
4-39 the smart jobs rainy day fund because of a severe economic
4-40 dislocation occurring in a specific region of the state, the
4-41 executive director may use the money allocated from the smart jobs
4-42 rainy day fund solely for projects located in the affected region.
4-43 (h) Notwithstanding any other provision of this section, the
4-44 total combined amount spent in any fiscal year from the smart jobs
4-45 fund and the smart jobs rainy day fund may not exceed the amount
4-46 appropriated by the legislature for that fiscal year for the
4-47 operation of the smart jobs fund program.
4-48 (i) If, during any three consecutive months, the balance in
4-49 the smart jobs fund or the smart jobs rainy day fund exceeds 0.15
4-50 percent of the total taxable wages for the four calendar quarters
4-51 ending the preceding June 30, as computed under Section 204.062(c),
4-52 Labor Code, the executive director shall immediately transfer the
4-53 excess from the applicable fund to the Unemployment Compensation
4-54 Fund created under Section 203.021, Labor Code.
4-55 SECTION 1.05. Section 481.155, Government Code, is amended
4-56 to read as follows:
4-57 Sec. 481.155. GRANTS. (a) The executive director may award
4-58 grants for projects that meet the requirements of this chapter.
4-59 [It is the intent of the legislature that, to the greatest extent
4-60 practicable, money from the smart jobs fund shall be spent in all
4-61 areas of the state. The executive director may award a grant or a
4-62 combination of grants in any fiscal year to a single employer in
4-63 excess of $1,500,000 or at a rate greater than 10 percent of the
4-64 annual wages of the new or existing job being created or retained
4-65 with the grant only if:]
4-66 [(1) the employer locates or expands in an enterprise
4-67 zone;]
4-68 [(2) the employer locates or expands in an adversely
4-69 affected defense-dependent community;]
5-1 [(3) the employer locates or expands in an area having
5-2 an unemployment rate 1-1/2 times greater than the statewide average
5-3 at the time of the application;]
5-4 [(4) the employer locates or expands in a county with
5-5 a population of less than 75,000;]
5-6 [(5) at least 25 percent of the employees hired or
5-7 retained by the employer are economically disadvantaged individuals
5-8 as defined by Section 2303.402(c); or]
5-9 [(6) the employer is a small business or a
5-10 micro-business.]
5-11 (b) [The executive director shall attempt to ensure that at
5-12 least 20 percent of the total dollar amount of grants awarded under
5-13 the program are awarded to minority employers.]
5-14 [(c) The program is job-driven.] A grant may not be awarded
5-15 unless each employer participating in the project certifies that:
5-16 (1) a job or job opening exists or will exist at the
5-17 end of the project for which the grant is sought; and
5-18 (2) the job or job opening will be filled by a
5-19 participant in the project.
5-20 (c) Except as otherwise provided by this subsection, a grant
5-21 may not be awarded unless each employer participating in the
5-22 project certifies that each job under the project is covered by a
5-23 group health benefit plan for which the business pays at least 50
5-24 percent of the premiums or other charges assessed for employee-only
5-25 coverage under the plan. The executive director may waive the
5-26 coverage requirement for a particular job if the affected employee
5-27 voluntarily waives the coverage in the manner prescribed by rules
5-28 adopted by the governing board.
5-29 (d) A grant may not be awarded for a project under this
5-30 section unless each employer participating in the project certifies
5-31 that the starting wage for a new job created through the project
5-32 will be equal to or greater than the county average weekly
5-33 [prevailing] wage for the county in which the job or project is
5-34 located [that occupation in the local labor market area] and that
5-35 the wage for a job existing on the date that the project is
5-36 scheduled to begin will be increased to the greater of:
5-37 (1) three percent for a micro-business or small
5-38 business or five percent for a business that is not a
5-39 micro-business or small business over the wage in effect on the day
5-40 before the date on which the project is scheduled to begin for that
5-41 job; or
5-42 (2) 100 percent of the county average weekly
5-43 [prevailing] wage for the county in which the job or project is
5-44 located [that occupation in the local labor market area].
5-45 (e) An employer may apply for a grant under this chapter.
5-46 An[, and an] employer [who is a micro-business] may request a
5-47 modification of the requirements provided by Subsection (d) and
5-48 Section 481.159(c), if[:]
5-49 [(1) the employer is required to reduce or eliminate
5-50 the employer's work force because of reductions in overall
5-51 employment within an industry;]
5-52 [(2) a substantial change in the skills required to
5-53 continue the employer's business exists because of technological
5-54 changes; or]
5-55 [(3) other] reasonable factors exist for the
5-56 modification, as determined by the executive director[, exist].
5-57 (f) Grants awarded under this section for which the
5-58 executive director has modified the requirements of Subsection (d)
5-59 may not, in any fiscal year, exceed 10 percent of the total dollar
5-60 amount of grants awarded under the program in that year.
5-61 (g) Unless modified by the executive director under rules
5-62 adopted by the governing [policy] board, a grant may not be awarded
5-63 for a project unless each employer participating in the project
5-64 certifies that it will continue to spend on nonmanagerial training
5-65 an amount from private sources equal to the average amount spent by
5-66 that employer on such training for the most recent two-year period.
5-67 (h) A grant may not be awarded for a project if the project
5-68 will impair existing contracts for services or collective
5-69 bargaining agreements, except that a project inconsistent with the
6-1 terms of a collective bargaining agreement may be undertaken with
6-2 the written concurrence of the collective bargaining unit and the
6-3 employer or employers who are parties to the agreement.
6-4 [(i) During each state fiscal year the executive director
6-5 shall attempt to ensure that at least 50 percent of the total
6-6 dollar amount of grants awarded under this section is awarded to
6-7 small businesses, as defined by Section 481.101.]
6-8 [(j) In awarding a grant under this section, the executive
6-9 director shall give priority to a project that is located in an
6-10 enterprise zone as defined by Section 2303.003.]
6-11 SECTION 1.06. Section 481.156, Government Code, is amended
6-12 to read as follows:
6-13 Sec. 481.156. GRANT APPLICATION; AWARDING OF GRANTS. (a)
6-14 The following may apply for a grant under this subchapter:
6-15 (1) one or more employers to secure training [for
6-16 demand occupations, emerging occupations, or manufacturing
6-17 occupations];
6-18 (2) one or more employers acting in partnership with
6-19 an employer organization, labor organization, or community-based
6-20 organization to secure training [for demand occupations, emerging
6-21 occupations, or manufacturing occupations]; or
6-22 (3) one or more employers acting in partnership with a
6-23 consortium composed of more than one provider to secure training
6-24 [for demand occupations, emerging occupations, or manufacturing
6-25 occupations].
6-26 (b) A grant application must be filed with the department in
6-27 a form approved by the executive director and, except as provided
6-28 by Subsection (c), must include a complete business and training
6-29 plan, including:
6-30 (1) the number and kind of jobs available;
6-31 (2) the skills and competencies required for the
6-32 identified jobs;
6-33 (3) the wages to be paid to trainees on successful
6-34 completion of the project;
6-35 (4) the goals, objectives, and outcome measures for
6-36 the project;
6-37 (5) the proposed curriculum for the project; and
6-38 (6) the projected cost per person enrolled, trained,
6-39 hired, and retained in employment.
6-40 (c) The governing board by rule may exempt a micro-business
6-41 from the requirement to submit a business and training plan that
6-42 complies with Subsection (b). The governing board by rule shall
6-43 establish a simplified application process for grant applications
6-44 from micro-businesses.
6-45 (d) [(c)] The department may provide assistance with the
6-46 application process to all applicants and shall give priority to
6-47 assisting applicants who are small businesses or micro-businesses
6-48 [in formulating the business and training plan required under
6-49 Subsection (b)].
6-50 (e) [(d)] The department shall minimize the length of the
6-51 application form and shall simplify as much as possible the review
6-52 process for grant applications.
6-53 (f) The department shall notify each applicant as to whether
6-54 the application is complete not later than the fifth business day
6-55 after the date on which the application is received by the
6-56 department. [(e) The executive director shall act on a completed
6-57 application not later than the 30th day after the date on which the
6-58 application is filed with the department.]
6-59 SECTION 1.07. Subchapter J, Chapter 481, Government Code, is
6-60 amended by adding Section 481.1565 to read as follows:
6-61 Sec. 481.1565. PARTICIPATION IN ADDITIONAL PROGRAMS;
6-62 APPLICATION REQUIREMENTS. (a) A business may not apply both for a
6-63 grant under this subchapter and to a public community or technical
6-64 college for customized training and assessment from the college
6-65 through a grant issued to the college under the skills development
6-66 fund program established under Chapter 303, Labor Code, unless the
6-67 business and the college file an application for concurrent
6-68 participation in both programs.
6-69 (b) The Texas Workforce Commission and the governing board
7-1 by rule shall jointly establish the requirements for an application
7-2 subject to this section.
7-3 SECTION 1.08. Section 481.157(b), Government Code, is
7-4 amended to read as follows:
7-5 (b) The governing [policy] board may adopt rules modifying
7-6 the requirements of Subsection (a) for employers that are small
7-7 businesses or micro-businesses [with fewer than 50 employees] and
7-8 may also adopt rules modifying the requirements of Subsection (a)
7-9 for projects that provide significant economic benefits to an
7-10 entire region of the state.
7-11 SECTION 1.09. Section 481.159, Government Code, is amended
7-12 by amending Subsections (a) and (c) and adding Subsection (d) to
7-13 read as follows:
7-14 (a) The executive director may approve any project that
7-15 meets the requirements of this subchapter. If [the executive
7-16 director approves] a project is approved and funds are available,
7-17 the department shall enter into a contract with the grant applicant
7-18 and with each employer participating in the project. The contract
7-19 must specify those skills and competencies to be gained as a result
7-20 of the project.
7-21 (c) Each contract must provide a schedule for payment of
7-22 smart jobs fund money. Twenty-five percent of allowable
7-23 expenditures shall be withheld by the department for 90 days after
7-24 the date of completion of the contract. If at least 85 percent of
7-25 the trainees in the project have been retained in employment for
7-26 that 90-day period, other than trainees who leave the employment
7-27 voluntarily for better-paying jobs, and have successfully achieved
7-28 the skills and competencies, wage requirements, and other
7-29 contractual obligations, the amount of allowable expenditures
7-30 withheld shall be remitted to the employer. The governing board by
7-31 rule shall establish procedures as necessary to verify that a
7-32 trainee has left the employment for a better-paying job. If there
7-33 is a negative balance, the employer is liable for the amount of the
7-34 negative balance and shall remit that amount to the department not
7-35 later than the 30th day after the date on which the employer is
7-36 notified of the negative balance by the department.
7-37 (d) Each contract must state the term of the grant award. A
7-38 grant recipient who does not use all money awarded under the grant
7-39 for the prescribed purpose within the allotted term shall reimburse
7-40 the program by submitting the appropriate amount to the executive
7-41 director not later than the 30th day after the expiration date of
7-42 the term of the grant award. The executive director shall remit
7-43 money received under this subsection to the comptroller for deposit
7-44 in the smart jobs rainy day fund.
7-45 SECTION 1.10. Section 481.160, Government Code, is amended
7-46 by amending Subsection (b) and adding Subsection (c) to read as
7-47 follows:
7-48 (b) The annual report must include for that fiscal year:
7-49 (1) the total number of applications submitted, the
7-50 total number of applications approved, and the total number of
7-51 applications rejected, reported by region of the state and by size
7-52 of business;
7-53 (2) the number of employers receiving grants under the
7-54 program reported by region of the state and the percentage that
7-55 number represents of the total number of employers receiving grants
7-56 under the program on a statewide basis;
7-57 (3) [(2)] the total amount of money [grants] awarded
7-58 in each region of the state and the percentage that amount
7-59 represents of the total amount of money awarded on a statewide
7-60 basis;
7-61 (4) a comparison of the percentage of total dollars
7-62 awarded to each region versus each region's percentage of:
7-63 (A) the state's population;
7-64 (B) the civilian labor force;
7-65 (C) the number of unemployed persons; and
7-66 (D) the number of eligible grant applications
7-67 for qualified jobs submitted to the department;
7-68 (5) [(3)] the value, expressed in dollars and as a
7-69 percentage of total training expenditures, of matching
8-1 contributions made by employers;
8-2 (6) [(4)] the number of [small] businesses, classified
8-3 by micro-businesses, small businesses, medium businesses, and large
8-4 businesses [as defined by Section 481.101(3)], that receive grants
8-5 under the program reported by region of the state and business size
8-6 and the percentage that number represents of the total number of
8-7 each of those categories of businesses receiving grants under the
8-8 program on a statewide basis;
8-9 (7) [and] the total amount of money [the grants]
8-10 awarded to micro-businesses, small businesses, medium businesses,
8-11 and large businesses, reported by region of the state and business
8-12 size, and the percentage that amount represents of the total amount
8-13 of money awarded to those businesses on a statewide basis;
8-14 (8) [(5)] the number of businesses located in
8-15 enterprise zones, as that term is defined by Chapter 2303, that
8-16 receive grants under the program and the total amount of the grants
8-17 awarded to those businesses;
8-18 (9) [(6) the geographical distribution of employers
8-19 receiving grants under the program;]
8-20 [(7)] the total number of jobs created, enhanced, or
8-21 retained under the program:
8-22 (A) [, reported] by region of the state;
8-23 (B) [and] by occupation, classified by the
8-24 applicable two-digit standard industrial classification;
8-25 (C) by wage level; and
8-26 (D) whether attributable to:
8-27 (i) relocation of businesses to this
8-28 state, including the percentage the number attributable to the
8-29 relocation of businesses represents of the total number of jobs
8-30 created, enhanced, or retained under the program on a statewide
8-31 basis; or
8-32 (ii) training or retraining of employees
8-33 of existing employers, including the percentage that the number
8-34 attributable to the training or retraining of employees of existing
8-35 employers represents of the total number of jobs created, enhanced,
8-36 or retained under the program on a statewide basis;
8-37 (10) [(8)] the average and median weekly wage levels
8-38 of trainees entering or returning to the workforce, broken down by
8-39 current employees undergoing retraining and new hires, at three
8-40 months and one year after the conclusion of their training;
8-41 (11) [(9)] the number and percentage of participating
8-42 employers that provide workers' compensation insurance coverage and
8-43 the number and percentage of employees covered;
8-44 (12) [(10) the number and percentage of participating
8-45 employers that offer health care insurance coverage and] the number
8-46 and percentage of employees covered by the group health benefit
8-47 plan offered by the employer;
8-48 (13) [(11)] the number and percentage of women,
8-49 disabled persons, [employers] and minority group members
8-50 [employers] receiving grants under the program as employers,
8-51 participating as trainees in training projects, or participating in
8-52 the program as providers [and the total amount of the grants
8-53 awarded], broken out by group;
8-54 (14) a list of modifications granted under Section
8-55 481.155(e), the name of the project for which the modification was
8-56 granted, and the reason the executive director granted the
8-57 modification [(12) the number and percentage of women, minority
8-58 group members, and disabled individuals participating as trainees
8-59 in training projects, broken out by group]; and
8-60 (15) the number of trainees who have left employment
8-61 with a grant recipient because the trainee has obtained a
8-62 better-paying job, as verified under Section 481.159(c) [(13) the
8-63 number and percentage of women private providers and private
8-64 providers who are minority group members utilized by employers in
8-65 training projects, broken out by group].
8-66 (c) In addition to the information required under Subsection
8-67 (b), the department shall include in the annual report, for each
8-68 region of the state in which a grant is awarded, the percentage
8-69 paid by employers in that region of the total amount of
9-1 unemployment insurance contributions paid by employers during the
9-2 preceding calendar year.
9-3 SECTION 1.11. Section 481.161, Government Code, is amended
9-4 to read as follows:
9-5 Sec. 481.161. EXPIRATION. This subchapter expires December
9-6 31, 2001 [1999].
9-7 ARTICLE 2. SKILLS DEVELOPMENT FUND
9-8 SECTION 2.01. Section 303.003(a), Labor Code, is amended to
9-9 read as follows:
9-10 (a) To achieve the purposes of this chapter, the skills
9-11 development fund is created. The fund is composed of:
9-12 (1) money transferred into the fund under Section
9-13 204.123; and
9-14 (2) any amounts appropriated by the legislature for
9-15 the purpose of this chapter from [money in] the general revenue
9-16 fund.
9-17 SECTION 2.02. Chapter 303, Labor Code, is amended by adding
9-18 Sections 303.005 and 303.006 to read as follows:
9-19 Sec. 303.005. PARTICIPATION IN ADDITIONAL PROGRAMS;
9-20 APPLICATION REQUIREMENTS. An employer may not apply both to a
9-21 public community or technical college for customized training and
9-22 assessment from the college through a grant issued to the college
9-23 under the skills development fund program established under this
9-24 chapter and for a grant under the smart jobs fund program
9-25 established under Subchapter J, Chapter 481, Government Code,
9-26 unless the employer and the college file an application for
9-27 concurrent participation in both programs that complies with
9-28 Section 481.1565, Government Code.
9-29 Sec. 303.006. REPORTING REQUIREMENTS. (a) In this section:
9-30 (1) "Employee" means an individual who performs
9-31 services for another under a contract of hire, whether express or
9-32 implied, or oral or written.
9-33 (2) "Employer" means a person that employs one or more
9-34 employees.
9-35 (3) "Existing employer" means an employer that:
9-36 (A) has been liable to pay contributions under
9-37 Subtitle A, Title 4, for more than one year;
9-38 (B) has employees; and
9-39 (C) is in compliance with the reporting and
9-40 payment requirements of Subtitle A, Title 4, as determined by the
9-41 Texas Workforce Commission.
9-42 (4) "In-kind contribution" means a noncash
9-43 contribution of goods and services provided by an employer as all
9-44 or part of the employer's matching share of a grant or project.
9-45 (5) "Job" means employment on a basis customarily
9-46 considered full-time for the applicable occupation and industry.
9-47 (6) "Large employer" means a business entity that
9-48 employs at least 500 employees.
9-49 (7) "Medium employer" means a business entity that
9-50 employs more than 99 but fewer than 500 employees.
9-51 (8) "Micro-employer" means a business entity that
9-52 employs not more than 20 employees.
9-53 (9) "Program" means the skills development fund
9-54 program created under this chapter.
9-55 (10) "Small employer" means a business entity that
9-56 employs more than 20 but fewer than 100 employees.
9-57 (11) "Trainee" means a participant in a project funded
9-58 under this chapter.
9-59 (12) "Wages" means all forms of compensation or
9-60 remuneration, excluding benefits, payable for a specific period to
9-61 an employee for personal services rendered by that employee.
9-62 (b) In implementing provisions under this section regarding
9-63 the classification of this state into regions, the executive
9-64 director shall use the uniform service regions established by the
9-65 comptroller under Section 120, Article V, Chapter 19, Acts of the
9-66 72nd Legislature, 1st Called Session, 1991 (the General
9-67 Appropriations Act).
9-68 (c) The executive director shall report to the governor and
9-69 the legislature at the end of each fiscal year the status of the
10-1 program established under this chapter.
10-2 (d) The annual report must include for that fiscal year:
10-3 (1) the total number of applications submitted, the
10-4 total number of applications approved, and the total number of
10-5 applications rejected by region of the state;
10-6 (2) the average and median weekly wage levels of
10-7 trainees under this chapter entering or returning to the workforce,
10-8 broken down by:
10-9 (A) current employees undergoing retraining;
10-10 (B) new hires; and
10-11 (C) region of the state;
10-12 (3) the average and median weekly wage levels of
10-13 trainees under this chapter entering or returning to the workforce,
10-14 broken down by region of the state;
10-15 (4) the number and percentage of trainees covered by
10-16 health care insurance coverage, workers' compensation insurance
10-17 coverage, and other analogous benefit programs;
10-18 (5) the total amount of money awarded in each region
10-19 of the state and the percentage that amount represents of the total
10-20 amount of money awarded on a statewide basis;
10-21 (6) a comparison of the percentage of total dollars
10-22 awarded to each region versus each region's percentage of:
10-23 (A) the state's population;
10-24 (B) the civilian labor force;
10-25 (C) the number of unemployed persons; and
10-26 (D) the number of qualified grant applications
10-27 submitted to the commission by public community and technical
10-28 colleges;
10-29 (7) the total amount of money awarded to
10-30 micro-employers, small employers, medium employers, and large
10-31 employers, reported by region of the state; and
10-32 (8) the total number of jobs created or persons
10-33 retrained under the program:
10-34 (A) by region of the state;
10-35 (B) by occupation classified by the two-digit
10-36 standard industrial classification;
10-37 (C) by wage level; and
10-38 (D) whether attributable to:
10-39 (i) relocation of businesses to this
10-40 state; or
10-41 (ii) training or retraining of employees
10-42 of existing employers.
10-43 ARTICLE 3. STUDY OF WORKFORCE PROGRAMS BY COMPTROLLER
10-44 SECTION 3.01. Chapter 403, Government Code, is amended by
10-45 adding Subchapter N to read as follows:
10-46 SUBCHAPTER N. STUDY OF CERTAIN WORKFORCE DEVELOPMENT PROGRAMS
10-47 Sec. 403.351. PERFORMANCE EVALUATION. (a) The comptroller
10-48 shall perform a biennial performance evaluation of:
10-49 (1) the smart jobs fund program established under
10-50 Subchapter J, Chapter 481; and
10-51 (2) the skills development fund program established
10-52 under Chapter 303, Labor Code.
10-53 (b) The evaluation must include:
10-54 (1) an analysis of the wage levels of trainees one
10-55 year and three years after the end of the trainees' participation
10-56 in the programs;
10-57 (2) information relating to the number of trainees
10-58 employed in the same field after one year and three years;
10-59 (3) a survey and analysis of program satisfaction from
10-60 former grant recipients;
10-61 (4) a description of the overall impact of the
10-62 programs on economic development in this state in general and on
10-63 economically distressed areas of this state in particular; and
10-64 (5) any additional information determined to be
10-65 necessary by the comptroller to analyze the performance and impact
10-66 of the programs.
10-67 (c) In performing the evaluation required by this section,
10-68 the comptroller shall also analyze the efficiency of the programs
10-69 subject to this section and the use of administrative funds by
11-1 those programs.
11-2 (d) The Texas Department of Economic Development, the Texas
11-3 Workforce Commission, and the State Occupational Information
11-4 Coordinating Committee shall cooperate with the comptroller in
11-5 implementing this section.
11-6 ARTICLE 4. CONFORMING AMENDMENTS
11-7 SECTION 4.01. Section 204.0065, Labor Code, is amended to
11-8 read as follows:
11-9 Sec. 204.0065. TEMPORARY INITIAL CONTRIBUTION RATE.
11-10 Notwithstanding Section 204.006, on and after January 1, 1994, a
11-11 person's contribution rate shall be two and six-tenths percent
11-12 until the date the experience rate computed under Section 204.041
11-13 takes effect for the employer. This section expires December 31,
11-14 2001 [1999].
11-15 SECTION 4.02. Section 204.0625, Labor Code, is amended to
11-16 read as follows:
11-17 Sec. 204.0625. TEMPORARY ADJUSTMENT TO REPLENISHMENT TAX
11-18 RATE. On and after January 1, 1994, the replenishment tax rate
11-19 computed under Section 204.062 shall be adjusted to a rate computed
11-20 by subtracting 0.1 from the quotient computed under Section
11-21 204.062(a). This section expires December 31, 2001 [1999].
11-22 SECTION 4.03. Section 204.123, Labor Code, is amended to
11-23 read as follows:
11-24 Sec. 204.123. TRANSFER TO SMART JOBS FUNDS, SKILLS
11-25 DEVELOPMENT FUND, AND COMPENSATION FUND. (a) If, on September 1
11-26 of a year, the commission determines that the amount in the
11-27 compensation fund will exceed 100 percent of its floor as computed
11-28 under Section 204.061 on the next October 1 computation date, the
11-29 commission shall transfer from [the amount in] the holding fund
11-30 created under Section 204.122:
11-31 (1) 50 percent of the amount in the holding fund to
11-32 the smart jobs fund created under Section 481.154(a) [481.154],
11-33 Government Code;
11-34 (2) 30 percent of the amount in the holding fund to
11-35 the skills development fund created under Section 303.003; and
11-36 (3) 20 percent of the amount in the holding fund to
11-37 the smart jobs rainy day fund created under Section 481.154(d),
11-38 Government Code.
11-39 (b) If, on September 1 of a year, the commission determines
11-40 that the amount in the compensation fund will be at or below 100
11-41 percent of its floor as computed under Section 204.061 on the next
11-42 October 1 computation date, the commission shall transfer to the
11-43 compensation fund as much of the amount in the holding fund as is
11-44 necessary to raise the amount in the compensation fund to 100
11-45 percent of its floor, up to and including the entire amount in the
11-46 holding fund. The commission shall transfer any remaining balance
11-47 in the holding fund to the smart jobs fund, the skills development
11-48 fund, and the smart jobs rainy day fund in the percentages
11-49 prescribed by Subsection (a) [created under Section 481.154,
11-50 Government Code].
11-51 (c) Notwithstanding Subsection (a), if, on September 1,
11-52 1999, the commission determines that the amount in the compensation
11-53 fund will exceed 100 percent of its floor as computed under Section
11-54 204.061 on the next October 1 computation date, the commission
11-55 shall transfer from the holding fund created under Section 204.122:
11-56 (1) 14 percent of the amount in the holding fund to
11-57 the smart jobs fund created under Section 481.154(a), Government
11-58 Code;
11-59 (2) 66 percent of the amount in the holding fund to
11-60 the skills development fund created under Section 303.003; and
11-61 (3) 20 percent of the amount in the holding fund to
11-62 the smart jobs rainy day fund created under Section 481.154(d),
11-63 Government Code.
11-64 (d) Subsection (c) and this subsection expire October 2,
11-65 1999.
11-66 SECTION 4.04. Section 204.124, Labor Code, is amended to
11-67 read as follows:
11-68 Sec. 204.124. EXPIRATION. This subchapter expires December
11-69 31, 2001 [1999].
12-1 ARTICLE 5. TRANSITION; EFFECTIVE DATE; EMERGENCY
12-2 SECTION 5.01. Section 481.155, Government Code, as amended
12-3 by this Act, applies only to a grant awarded by the Texas
12-4 Department of Economic Development on or after January 1, 2000. A
12-5 grant awarded before that date is governed by the law in effect
12-6 immediately before the effective date of this Act, and the former
12-7 law is continued in effect for that purpose.
12-8 SECTION 5.02. Section 481.159(d), Government Code, as added
12-9 by this Act, applies to reimbursement by an employer of money
12-10 awarded under a grant awarded before, on, or after September 1,
12-11 1999.
12-12 SECTION 5.03. This Act takes effect September 1, 1999.
12-13 SECTION 5.04. The importance of this legislation and the
12-14 crowded condition of the calendars in both houses create an
12-15 emergency and an imperative public necessity that the
12-16 constitutional rule requiring bills to be read on three several
12-17 days in each house be suspended, and this rule is hereby suspended.
12-18 * * * * *