HBA-AMW, SEP H.B. 1243 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1243
By: Villarreal, Mike
Economic Development
7/9/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, TWC tracked the short-term employment
history of a former recipient of assistance under its employment programs
for a maximum of 12 months after the recipient left the program. The
ability of former recipients to earn a living wage is essential to the
success of welfare-to-work programs, but there may be little increase in a
recipient's wages over time.  Low wage growth may arise either from low
returns to increased work experience or from low levels of experience.
Determining which factor is the cause of low wage growth could be
significant in designing effective welfare policy.  House Bill 1243
requires the employment history tracking of former program recipients for
up to three years, and provides measures for assessing recipients'
abilities to achieve and maintain long-term self-sufficiency. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1243 amends the Labor Code to require the Texas Workforce
Commission (TWC) division of workforce development, in cooperation with the
Texas Department of Human Services, to develop and implement a system to
monitor the long-term employment history of persons who are former
recipients of assistance under certain employment programs operated by the
division.  The bill sets forth provisions regarding the system's design,
including that the system must track recipients' wage and employment
outcomes for up to three years after leaving the employment program.  The
bill requires TWC to report to the legislature information obtained from
the system, separately or as a part of any other required report, not later
than January 1 of each odd-numbered year.   

EFFECTIVE DATE

September 1, 2001.