HBA-SEP H.B. 2327 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2327 By: Solis, Jim Economic Development 6/14/2001 Enrolled BACKGROUND 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. House Bill 2327 implements these recommendations. 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 2327 amends the Labor Code to provide that training for local workforce development board (board) members must include training for board employees regarding the collection and analysis of data in the TWC's reporting and information system for performance reports. The bill requires TWC to require boards to participate in outreach activities provided and designed by TWC to allow board members and employees to become more proficient in the administration and operation of local workforce development activities. The bill requires TWC to adopt policies establishing the number of outreach activities in which a board is required to participate. TWC is also required to adopt a detailed and understandable sanctions plan to be used by boards in the implementation of the sanction process. The bill provides that such a plan must include a requirement that TWC provide technical assistance to the boards in avoiding or responding to sanctions and specific provisions regarding the time in which a board is allowed to address concerns and improve the board's performance. TWC is required to adopt a plan to address the lack of service providers (provider) in specific local workforce development areas that includes provisions: _for offering incentives to attract exceptional providers and to encourage these providers to assist in improving the practices of other providers; _relating to the imposition of sanctions by a board against a provider; and _under certain circumstances, requiring TWC to provide services until a provider is designated. TWC is also required to collaborate with boards when determining the use of funds at the local level and 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. TWC is required to evaluate and adjust, if necessary, the use of TWC's full-time employees in providing assistance to boards. EFFECTIVE DATE September 1, 2001.