SRC-TBR H.B. 2327 77(R) BILL ANALYSIS Senate Research Center H.B. 2327 By: Solis, Jim (Van de Putte) Business & Commerce 5/4/2001 Engrossed DIGEST AND PURPOSE During the interim, the House Committee on Economic Development of the 76th Legislature was charged to assess the strengths and weaknesses of local workforce development boards (boards) and their capacity to provide effective training and services. The committee recommended providing boards with the use of state resources by directing the Texas Workforce Commission (TWC) to require boards to participate in outreach activities in order for boards and their staffs to become proficient in the administration and operation of their workforce centers, to develop a detailed and understandable plan for the boards regarding the sanction process, and to develop a plan addressing the lack of local service providers participating in particular board areas. H.B. 2327 implements these recommendations. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 302.043, Labor Code, by adding Subsection (d), to require the training under this section to include training for local workforce development board members and board employees regarding the collection and analysis of data in the commission's reporting and information system for performance reports. SECTION 2. Amends Chapter 302C, Labor Code, by adding Sections 302.044, 302.045, and 302.046, as follows: Sec. 302.044. OUTREACH ACTIVITIES. Requires the Texas Workforce Commission (commission) to require that local workforce development boards participate in outreach activities provided by the commission that are designed by the commission to allow board members and employees to become more proficient in the administration and operation of local workforce development activities. Requires the commission to adopt policies establishing the number of outreach activities in which a board is required to participate. Sec. 302.045. SANCTIONS PLAN. Requires the commission to adopt a detailed and understandable plan to be used by local workforce development boards in the implementation of the sanction process. Requires the plan adopted under this section to include a requirement that the commission provide technical assistance to the boards in avoiding or responding to sanctions and specific provisions regarding the time in which a board is to be allowed to address concerns and improve the board's performance. Sec. 302.046. PLAN REGARDING LACK OF SERVICE PROVIDERS. (a) Requires the commission to adopt a plan to address the lack of service providers in specific local workforce development areas. (b) Requires the plan adopted under this section to include certain provisions. SECTION 3. Amends Chapter 302D, Labor Code, by adding Section 302.064 as follows: Sec. 302.064. COLLABORATION WITH LOCAL BOARDS. (a) Requires the commission to collaborate with local workforce development boards when determining the use of funds at the local level. (b) Requires the commission to develop funding guidelines and strategies allowing boards to exercise flexibility in identifying and addressing the needs of persons who live in remote areas or who face other barriers to employment. SECTION 4. (a) Effective date: September 1, 2001. (b) Requires the Texas Workforce Commission to evaluate and adjust, if necessary, the use of the commission's full-time employees in providing assistance to local workforce development boards. Requires the commission, in attempting to provide more assistance to local boards, to emphasize providing assistance in performance measurement, financial management, child-care services, and contract management. (c) Requires the Texas Workforce Commission and the Legislative Budget Board to review and, if necessary, adjust the performance measurements used for local workforce development boards so that the measurements do not hinder the ability of the boards to perform their duties. Requires the performance measurements to be directed to encourage the boards to assist clients in attaining sustainable employment with wages that promote self-sufficiency for clients and their families.