By Lucio S.B. No. 45
76R2061 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the distribution of certain state and federal job
1-3 training funds and to the continuation of the smart jobs fund.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. APPLICATION TO SMART JOBS FUND PROGRAM
1-6 SECTION 1.01. Section 481.152, Government Code, is amended
1-7 to read as follows:
1-8 Sec. 481.152. SMART JOBS FUND PROGRAM; ADMINISTRATION. (a)
1-9 The smart jobs fund program is created in the department as a work
1-10 force development incentive program to enhance employment
1-11 opportunities and to meet the needs of existing and new industries
1-12 in this state.
1-13 (b) [The program shall give priority to the creation and
1-14 retention of family wage jobs and focus on employers in industries
1-15 that promote high-skill, high-wage jobs in high-technology areas
1-16 and on demand occupations that provide those jobs. At least 60
1-17 percent of the money spent under the program shall be used for
1-18 projects that assist existing employers.]
1-19 [(c)] The department shall administer the program.
1-20 (c) [(d)] The executive director may employ personnel as
1-21 necessary to administer the program.
1-22 SECTION 1.02. Subchapter J, Chapter 481, Government Code, is
1-23 amended by adding Section 481.1525 to read as follows:
1-24 Sec. 481.1525. PROGRAM PRIORITIES. (a) The program shall
2-1 give priority to the creation and retention of family wage jobs in
2-2 regions of this state that have high unemployment rates and low per
2-3 capita income, as determined by the department in conjunction with
2-4 the Texas Workforce Commission and the comptroller.
2-5 (b) To the extent feasible with the priorities established
2-6 under this subchapter, the program shall focus on employers in
2-7 industries that promote high-skill, high-wage jobs in
2-8 high-technology areas and on demand occupations that provide those
2-9 jobs. At least 60 percent of the money spent under the program
2-10 shall be used for projects that assist existing employers.
2-11 (c) The program shall give priority to employment for
2-12 residents of this state.
2-13 SECTION 1.03. Section 481.155, Government Code, is amended
2-14 to read as follows:
2-15 Sec. 481.155. GRANTS. (a) The executive director may award
2-16 grants for projects that meet the requirements of this chapter.
2-17 The distribution of grants under the program shall be weighted,
2-18 through a formula devised by the department, in favor of regions of
2-19 this state that have high unemployment rates and low per capita
2-20 income, as determined by the department in conjunction with the
2-21 Texas Workforce Commission and the comptroller. It is the intent
2-22 of the legislature that, to the [greatest] extent feasible with
2-23 this subsection and the priorities established under this
2-24 subchapter [practicable], money from the smart jobs fund shall be
2-25 spent in all areas of the state.
2-26 (b) The executive director may award a grant or a
2-27 combination of grants in any fiscal year to a single employer in
3-1 excess of $1,500,000 or at a rate greater than 10 percent of the
3-2 annual wages of the new or existing job being created or retained
3-3 with the grant only if:
3-4 (1) the employer locates or expands in an enterprise
3-5 zone;
3-6 (2) the employer locates or expands in an adversely
3-7 affected defense-dependent community;
3-8 (3) the employer locates or expands in an area having
3-9 an unemployment rate 1 1/2 times greater than the statewide average
3-10 at the time of the application;
3-11 (4) the employer locates or expands in a county with a
3-12 population of less than 75,000;
3-13 (5) at least 25 percent of the employees hired or
3-14 retained by the employer are economically disadvantaged individuals
3-15 as defined by Section 2303.402(c); or
3-16 (6) the employer is a small business or a
3-17 micro-business.
3-18 (c) [(b)] The executive director shall attempt to ensure
3-19 that at least 20 percent of the total dollar amount of grants
3-20 awarded under the program are awarded to minority employers.
3-21 (d) [(c)] The program is job-driven. A grant may not be
3-22 awarded unless each employer participating in the project certifies
3-23 that:
3-24 (1) a job or job opening exists or will exist at the
3-25 end of the project for which the grant is sought; and
3-26 (2) the job or job opening will be filled by a
3-27 participant in the project.
4-1 (e) [(d)] A grant may not be awarded for a project under
4-2 this section unless each employer participating in the project
4-3 certifies that the starting wage for a new job created through the
4-4 project will be equal to or greater than the prevailing wage for
4-5 that occupation in the local labor market area and that the wage
4-6 for a job existing on the date that the project is scheduled to
4-7 begin will be increased to the greater of:
4-8 (1) three percent for a small business or five percent
4-9 for a business that is not a small business over the wage in effect
4-10 on the day before the date on which the project is scheduled to
4-11 begin for that job; or
4-12 (2) 100 percent of the prevailing wage for that
4-13 occupation in the local labor market area.
4-14 (f) [(e)] An employer may apply for a grant under this
4-15 chapter, and an employer who is a micro-business may request a
4-16 modification of the requirements provided by Subsection (e) [(d)]
4-17 and Section 481.159(c), if:
4-18 (1) the employer is required to reduce or eliminate
4-19 the employer's work force because of reductions in overall
4-20 employment within an industry;
4-21 (2) a substantial change in the skills required to
4-22 continue the employer's business exists because of technological
4-23 changes; or
4-24 (3) other reasonable factors, as determined by the
4-25 executive director, exist.
4-26 (g) [(f)] Grants awarded under this section for which the
4-27 executive director has modified the requirements of Subsection (e)
5-1 [(d)] may not, in any fiscal year, exceed 10 percent of the total
5-2 dollar amount of grants awarded under the program in that year.
5-3 (h) [(g)] Unless modified by the executive director under
5-4 rules adopted by the policy board, a grant may not be awarded for a
5-5 project unless each employer participating in the project certifies
5-6 that it will continue to spend on nonmanagerial training an amount
5-7 from private sources equal to the average amount spent by that
5-8 employer on such training for the most recent two-year period.
5-9 (i) [(h)] A grant may not be awarded for a project if the
5-10 project will impair existing contracts for services or collective
5-11 bargaining agreements, except that a project inconsistent with the
5-12 terms of a collective bargaining agreement may be undertaken with
5-13 the written concurrence of the collective bargaining unit and the
5-14 employer or employers who are parties to the agreement.
5-15 (j) [(i)] During each state fiscal year the executive
5-16 director shall attempt to ensure that at least 50 percent of the
5-17 total dollar amount of grants awarded under this section is awarded
5-18 to small businesses, as defined by Section 481.101.
5-19 [(j) In awarding a grant under this section, the executive
5-20 director shall give priority to a project that is located in an
5-21 enterprise zone as defined by Section 2303.003.]
5-22 SECTION 1.04. Section 204.006(a), Labor Code, is amended to
5-23 read as follows:
5-24 (a) A person's contribution rate for the calendar year in
5-25 which the person becomes an employer is the greater of:
5-26 (1) the rate established for that year for the major
5-27 group to which the employer is assigned under Section 204.004; or
6-1 (2) two and six-tenths [seven-tenths] percent.
6-2 SECTION 1.05. Sections 481.158 and 481.161, Government Code,
6-3 are repealed.
6-4 SECTION 1.06. Sections 204.0065 and 204.124, Labor Code, are
6-5 repealed.
6-6 ARTICLE 2. APPLICATION TO SKILLS DEVELOPMENT FUND PROGRAM
6-7 SECTION 2.01. Chapter 303, Labor Code, is amended by
6-8 amending Section 303.001 and by adding Section 303.0015 to read as
6-9 follows:
6-10 Sec. 303.001. PURPOSE; FUND PRIORITIES [DEFINITION]. (a)
6-11 The purpose of this chapter is to remove administrative barriers
6-12 that impede the response of public community and technical colleges
6-13 and the Texas Engineering Extension Service to industry and
6-14 workforce training needs and to develop incentives for public
6-15 community and technical colleges and the Texas Engineering
6-16 Extension Service to provide customized assessment and training in
6-17 a timely and efficient manner.
6-18 (b) The skills development fund shall give priority to
6-19 programs in regions of this state that have high unemployment rates
6-20 and low per capita income, as determined by the commission in
6-21 conjunction with the Texas Department of Economic Development and
6-22 the comptroller.
6-23 Sec. 303.0015. DEFINITION. In [For purposes of] this
6-24 chapter, "assessment" means the evaluation of an employer's
6-25 workforce needs and requirements.
6-26 SECTION 2.02. Sections 303.003(d), (e), and (f), Labor Code,
6-27 are amended to read as follows:
7-1 (d) The executive director, or a person appointed by the
7-2 executive director who is knowledgeable in the administration of
7-3 grants, is responsible for the distribution of money from the
7-4 skills development fund. The distribution of money from the fund
7-5 shall be weighted, through a formula devised by the commission, in
7-6 favor of regions of this state that have high unemployment rates
7-7 and low per capita income, as determined by the commission in
7-8 conjunction with the Texas Department of Economic Development and
7-9 the comptroller.
7-10 (e) It is the intent of the legislature that, to the
7-11 greatest extent feasible with the priorities established under this
7-12 chapter [practicable], money from the skills development fund shall
7-13 be spent in all areas of this state.
7-14 (f) The Texas Engineering Extension Service shall focus the
7-15 service's training activities under this chapter on programs that[:]
7-16 [(1) are statewide in nature; or]
7-17 [(2)] are not available from a local junior college
7-18 district, a local technical college, or a consortium of junior
7-19 college districts.
7-20 ARTICLE 3. APPLICATION TO JOB TRAINING PARTNERSHIP ACT PROGRAMS
7-21 SECTION 3.01. Section 302.062, Labor Code, is amended by
7-22 amending Subsections (b) and (c) and adding Subsection (h) to read
7-23 as follows:
7-24 (b) In the case of funds that are allocated to this state or
7-25 regions of this state through the application of [established]
7-26 formulas established under federal laws or regulations, the
7-27 commission shall allocate amounts across the state using the same
8-1 formula that was used to provide the funds to the state or that
8-2 region.
8-3 (c) In the case of funds that are not allocated by formulas
8-4 established under federal laws or regulations [formula] to this
8-5 state or regions of this state, the commission shall [develop a
8-6 need-based formula that will equitably] allocate funds among local
8-7 workforce development areas throughout this state as provided by
8-8 Subsection (h).
8-9 (h) Unless superseded by federal law, the distribution of
8-10 funds under this section shall be weighted, through a formula
8-11 devised by the commission, in favor of regions of this state that
8-12 have high unemployment rates and low per capita income, as
8-13 determined by the commission in conjunction with the Texas
8-14 Department of Economic Development and the comptroller.
8-15 ARTICLE 4. TRANSITION; EFFECTIVE DATE; EMERGENCY
8-16 SECTION 4.01. (a) Section 481.155, Government Code, as
8-17 amended by this Act, applies only to a grant awarded by the
8-18 executive director of the Texas Department of Economic Development
8-19 on or after January 1, 2000. A grant awarded before that date is
8-20 governed by the law in effect on the date that the grant
8-21 application was received by the Texas Department of Economic
8-22 Development, and the former law is continued in effect for that
8-23 purpose.
8-24 (b) Section 303.003, Labor Code, as amended by this Act,
8-25 applies only to money distributed from the skills development fund
8-26 by the Texas Workforce Commission on or after January 1, 2000.
8-27 (c) Section 302.062, Labor Code, as amended by this Act,
9-1 applies only to funds distributed by the Texas Workforce Commission
9-2 under that section on or after January 1, 2000.
9-3 SECTION 4.02. This Act takes effect September 1, 1999.
9-4 SECTION 4.03. The importance of this legislation and the
9-5 crowded condition of the calendars in both houses create an
9-6 emergency and an imperative public necessity that the
9-7 constitutional rule requiring bills to be read on three several
9-8 days in each house be suspended, and this rule is hereby suspended.