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.