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.