By Seaman                                             H.B. No. 3142
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to incentive programs and employment services and
 1-3     enhancement of the financial stability of the unemployment
 1-4     compensation fund.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Chapter 309. Labor Code, is amended by adding the
 1-7     following:
 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-9           SECTION 2.  Chapter 309.  Labor Code is amended by adding the
1-10     following subchapter and sections:
1-11                       SUBCHAPTER B.  WAGE ENHANCEMENT
1-12           Sec. 309.010.  TEXAS WAGE SUBSIDY PROGRAM; PURPOSE. The
1-13     purpose of the Texas Wage Subsidy Program is to provide an
1-14     incentive to employers in this state to hire certain individuals
1-15     who have traditionally been considered for various reasons as being
1-16     faced with barriers to employment.
1-17           Sec. 309.011.  DEFINITIONS.
1-18                 (1)  "Employee" means an individual employed by an
1-19     employer.
1-20                 (2)  "Employer" has the same meaning assigned to that
1-21     term in Chapter 201, Subtitle A, Title 4, Labor Code.
1-22                 (3)  "Qualifying wages" means the wage level to be
1-23     received by the employee as remuneration from employment, as agreed
 2-1     between the employer and the employee, but in no case will it mean
 2-2     a wage level lower than the federal minimum wage required under
 2-3     Section 206 of the Fair Labor Standards Act, Title 29, United
 2-4     States Code, nor shall it include that part of an employee's wages
 2-5     that exceed $7,500.
 2-6           Sec. 309.012.  ELIGIBILITY. (a)  An "eligible employee" is an
 2-7     individual who:
 2-8                 (1)  is within his or her first 90 calendar days of his
 2-9     or her initial employment with the employer;
2-10                 (2)  is or has been a participant in any workforce
2-11     development or job training program administered by the commission
2-12     or by a local workforce development board in this State; and
2-13                 (3)  prior to becoming employed by the eligible
2-14     employer, met any of the following criteria:
2-15                       (A)  the individual had not performed services in
2-16     employment as defined under Chapter 201, Subtitle A, Title 4, Labor
2-17     Code;
2-18                       (B)  the individual was a participant or
2-19     recipient in any type of employment program or financial assistance
2-20     under Chapter 31, Human Resources Code;
2-21                       (C)  the individual was subject to Section
2-22     207.021(a)(8) of Chapter 207, Subtitle A, Title 4, Labor Code; or
2-23                       (D)  within the twelve-month period immediately
2-24     preceding the date of hire, the individual had been unemployed for
2-25     longer than twelve consecutive calendar weeks or had experienced
2-26     three or more separations from covered employment, as defined in
 3-1     Chapter 201, Subtitle A, Title 4, Labor Code.
 3-2           (b)  An employer is eligible for participation in the wage
 3-3     subsidy program if it:
 3-4                 (1)  is current on all federal and state employment tax
 3-5     payments;
 3-6                 (2)  has no outstanding final rulings, judgments, or
 3-7     assessments against it under a wage payment statute of this State
 3-8     or of the United States, except that a ruling, judgment, or
 3-9     assessment that is under a pending appeal before an administrative
3-10     agency or any court shall not be considered an outstanding final
3-11     ruling, judgment, or assessment; and
3-12                 (3)  agrees to observe all Texas and federal guidelines
3-13     pertaining to equal employment opportunity within its workforce.
3-14           Sec. 309.013.  WAGE SUBSIDY; LIMITATIONS. (a)  An eligible
3-15     employer that employs an eligible employee will be entitled to
3-16     apply to the commission for a payment equal to ten percent (10%) of
3-17     the qualifying wages paid to the employee during the first 90
3-18     calendar days of employment.
3-19           (b)  The payment covered in subsection (a) of this section is
3-20     payable from funds available to the commission under any program
3-21     pertaining to job training, job matching, or workforce development
3-22     purposes.
3-23           (c)  Application for payment under subsection (a) will be
3-24     made by an eligible employer following the first 90 days of the
3-25     eligible employee's employment, or sooner if such employee
3-26     separates from employment prior to the end of the 90-day period, in
 4-1     writing and in a form approved by the commission.
 4-2           (d)  The commission may require any appropriate documentation
 4-3     from the employer to support its application for the wage subsidy
 4-4     under this section.
 4-5           (e)  An eligible employer may not hire an eligible employee
 4-6     under this program if that hiring would displace any of the
 4-7     employer's existing employees.
 4-8           (f)  No more than ten percent (10%) of an eligible employer's
 4-9     workforce may consist of eligible participants at any given time.
4-10     However, each employer may receive one participant.
4-11           Sec. 309.014.  RULEMAKING AUTHORITY. (a)  The commission may
4-12     adopt reasonable rules to administer and enforce this subchapter.
4-13           (b)  The commission shall involve representatives of local
4-14     workforce development boards and other appropriate organizations in
4-15     developing the rules under this subchapter.
4-16           SECTION 3.  Not later than January 1, 2002, the Texas
4-17     Workforce Commission shall develop the rules required by Section
4-18     309.014, Labor Code, as added by this Act.
4-19           SECTION 4.  If before implementing any provision of this Act,
4-20     a state agency determines that a waiver or authorization from a
4-21     federal agency is necessary for implementation of that provision,
4-22     the agency affected by the provision shall request the waiver or
4-23     authorization and may delay implementing that provision until the
4-24     waiver or authorization is granted.
4-25           SECTION 5.  This Act takes effect September 1, 2001.