SRC-TBR S.B. 429 77(R) BILL ANALYSIS Senate Research Center S.B. 429 77R2062 JMM-DBy: Lucio Business & Commerce 3/12/2001 As Filed DIGEST AND PURPOSE Currently, only three of the five Texas Workforce and Economic Competitiveness (TCWEC) council agencies are funding TCWEC activities, although state law requires that all five proportionally fund them. As proposed, S.B. 429 authorizes the establishment of a proportional funding formula to enable an equitable funding by the five council agencies; establishes two performance measures as part of the state's performance-based budgeting and accountability system for agencies with work force programs; and provides for the dissemination of workforce development system information over the Internet. 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 2308.065(b), Government Code, to require the Council on Workforce and Economic Competitiveness (council), with the governor's approval, to establish a funding formula to determine the level of support each agency must provide in participating in the workforce development system. SECTION 2. Amends Section 2308.101, Government Code, as follows: (b) Requires the council to provide the information required to be reported under Subsections (a)(13) and (14) and Section 2308.104(a) to the Texas Workforce Commission (commission). Requires the commission to include information provided under this subsection that relates to the administration and operation of the state's workforce development system with other information the commission provides to the public on the Internet. Deletes language regarding the Job Training Partnership Act (29 U.S.C. Section 1501 et seq.). SECTION 3. Amends Section 2308.104, Government Code, as follows: Sec. 2308.104. New heading: STRATEGIC PLANNING. Requires the council to develop and recommend to the governor and report to the legislature strategic plans as provided by this section, rather than a single plan, that establish the framework for the budgeting and operation of the workforce development system. Makes conforming change. (b) Requires the council to engage in strategic planning by developing two types of performance measures as described by Subsections (c) and (d). (c) Provides the first performance measure consists of formal measures, reviewed and approved by the Legislative Budget Board (LBB), that require all state agencies that administer workforce programs to report annually as part of each agency's performance budget and accounting system. Prohibits the measures adopted under this subsection from including more than five individual measures selected by the council, in consultation with each agency required to report under this subsection, and approved by the governor. (d) Provides the second performance measure consists of less formal performance measures, developed with technical support from the LBB to ensure that the measures and reporting criteria are consistent with the state's performance budget and accounting system. Requires the measures under this subsection to be adopted to apply individually to each agency that administers a workforce program with no single measure intended to apply to all of the agencies. Requires the measures under this subsection to be developed by the council, in consultation with each agency required to report under this subsection, and approved by the governor. (e) Makes a conforming change. (f) Requires the council to include in the council's strategic plans, rather than plan, goals, objectives, and performance measures for the workforce system that involve programs of all state agencies that administer workforce programs. Deletes language regarding the council. (g) Makes conforming changes. SECTION 4. Amends Section 2308.151, Government Code, by adding Subsection (c) as follows: (c) Requires the council, with the approval of the governor, to establish a funding formula to determine the level of support each agency administering a workforce program must provide to operate the automated follow-up and evaluation system required by this section. SECTION 5. Effective date:September 1, 2001. Requires the council and the LBB to complete the development, review, and approval, as appropriate, of the performance measures required by Section 2308.104, Government Code, as amended by this Act, on or before September 1, 2002.