By:  Lucio                                             S.B. No. 429
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the funding and administration of certain activities of
 1-3     the Council on Workforce and Economic Competitiveness.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsection (b), Section 2308.065, Government
 1-6     Code, is amended to read as follows:
 1-7           (b)  A state agency represented on the council shall provide
 1-8     funds for the support of the council in proportion to the agency's
 1-9     financial participation in the workforce development system.  The
1-10     council, with the governor's approval, shall establish a funding
1-11     formula to determine the level of support each agency must provide.
1-12           SECTION 2.  Section 2308.101, Government Code, is amended to
1-13     read as follows:
1-14           Sec. 2308.101.  GENERAL DUTIES.  (a)  The council shall:
1-15                 (1)  promote the development of a well-educated, highly
1-16     skilled workforce in this state;
1-17                 (2)  advocate the development of an integrated
1-18     workforce development system to provide quality services addressing
1-19     the needs of business and workers in this state;
1-20                 (3)  recommend to the governor the designation or
1-21     redesignation of workforce development areas for the local planning
1-22     and delivery of workforce development;
1-23                 (4)  identify and recommend to the governor incentives
1-24     to encourage the consolidation, on a regional labor market basis,
1-25     of:
 2-1                       (A)  local boards, councils, and committees; and
 2-2                       (B)  service delivery areas authorized under [the
 2-3     Job Training Partnership Act (29 U.S.C. Section 1501 et seq.) or
 2-4     other] federal workforce legislation;
 2-5                 (5)  review plans for local workforce development and
 2-6     make recommendations to the governor for approval;
 2-7                 (6)  evaluate the effectiveness of the workforce
 2-8     development system;
 2-9                 (7)  use the administrative records of the state's
2-10     unemployment compensation program and other sources as appropriate
2-11     in evaluating the workforce development system;
2-12                 (8)  encourage, support, or develop research and
2-13     demonstration projects designed to develop new programs and
2-14     approaches to service delivery;
2-15                 (9)  recommend measures to ensure that occupational
2-16     skills training is:
2-17                       (A)  provided in occupations that are locally in
2-18     demand; and
2-19                       (B)  directed toward high-skill and high-wage
2-20     jobs;
2-21                 (10)  monitor the operation of the state's workforce
2-22     development system to assess the degree to which the system is
2-23     effective in achieving state and local goals and objectives;
2-24                 (11)  develop and recommend to the governor criteria
2-25     for the establishment of local workforce development boards;
2-26                 (12)  carry out the federal and state duties and
 3-1     responsibilities of advisory councils under applicable federal and
 3-2     state workforce development laws or regulations;
 3-3                 (13)  report periodically to the governor and the
 3-4     legislature; and
 3-5                 (14)  provide annual reports to the governor and the
 3-6     legislature, including an annual report analyzing work development
 3-7     programs that focus on welfare to work initiatives.
 3-8           (b)  The council shall provide the information required to be
 3-9     reported under Subsections (a)(13) and (14) and Section 2308.104(a)
3-10     to the Texas Workforce Commission.  The Texas Workforce Commission
3-11     shall include information provided under this subsection that
3-12     relates to the administration and operation of the state's
3-13     workforce development system with other information the commission
3-14     provides to the public on the Internet.
3-15           SECTION 3.  Section 2308.104, Government Code, is amended to
3-16     read as follows:
3-17           Sec. 2308.104.  STRATEGIC PLAN.  (a)  The council shall
3-18     develop and recommend to the governor and report to the legislature
3-19     a single strategic plan that establishes the framework for the
3-20     budgeting and operation of the workforce development system,
3-21     including school to careers and welfare to work components,
3-22     administered by agencies represented on the council.  The council
3-23     shall annually report to the governor and the legislature on the
3-24     implementation of the strategic plan.
3-25           (b)  The council shall engage in strategic planning by
3-26     selecting or developing two types of performance measures as
 4-1     described by Subsections (c) and (d).  To the fullest extent
 4-2     possible, all measures must be selected from those already
 4-3     developed and approved before September 1, 2001, by one or more
 4-4     state agencies that administer workforce programs.  The council may
 4-5     develop a new measure only if the council:
 4-6                 (1)  identifies a gap in accountability; or
 4-7                 (2)  determines that at least one state agency
 4-8     administering a workforce program cannot report under the measures
 4-9     developed and approved before September 1, 2001.
4-10           (c)  The first type of performance measure consists of formal
4-11     measures identifying outcomes that are essentially consistent
4-12     across all workforce programs.  Job placement rates, job retention
4-13     rates, and wage rates may be included among those measures.  The
4-14     council may develop or select not more than five formal measures.
4-15     The council shall develop or select each formal measure in
4-16     consultation with the state agencies required to report under this
4-17     subsection.  Once approved by the governor and the Legislative
4-18     Budget Board, a formal measure becomes part of the state's
4-19     performance budget and accounting system and applies to each state
4-20     agency that administers a workforce program.
4-21           (d)  The second type of performance measure consists of less
4-22     formal measures to provide information determined by the council to
4-23     be essential in development of the strategic plan under this
4-24     section.  Employer participation rates, customer satisfaction
4-25     levels, and educational attainment may be included among those
4-26     measures.  The council shall develop or select each less formal
 5-1     measure with the approval of the governor and in consultation with
 5-2     the state agencies required to report under this subsection.  The
 5-3     Legislative Budget Board shall provide technical assistance to the
 5-4     council to ensure that the measures and associated reporting
 5-5     criteria are consistent with the state's performance budget and
 5-6     accounting system.  The council may exempt a state agency that
 5-7     administers a workforce program from any requirement to use a less
 5-8     formal measure.
 5-9           (e)  In addition to the other requirements of this chapter,
5-10     the strategic plan recommended by the council must recognize and
5-11     address literacy and basic education as activities that are
5-12     critical to the well-being of individuals and the state without
5-13     regard to whether the training and education is directed at
5-14     preparing an individual for employment.
5-15           (f) [(c)]  The council shall include in the strategic plan
5-16     goals, objectives, and performance measures for the workforce
5-17     development system that involve programs of all state agencies that
5-18     administer workforce programs [are represented on the council].
5-19           (g) [(d)]  On approval of the plan by the governor, an agency
5-20     administering a workforce program [represented on the council]
5-21     shall use the strategic plan to develop the agency's operational
5-22     plan.
5-23           SECTION 4.  Section 2308.151, Government Code, is amended by
5-24     adding Subsection (c) to read as follows:
5-25           (c)  The council shall establish, with the approval of the
5-26     governor, a funding formula to determine the level of support each
 6-1     agency administering a workforce program must provide to operate
 6-2     the automated follow-up and evaluation system required by this
 6-3     section.
 6-4           SECTION 5.  (a)  This Act takes effect September 1, 2001.
 6-5           (b)  The Council on Workforce and Economic Competitiveness
 6-6     and the Legislative Budget Board shall complete the development,
 6-7     review, and approval, as appropriate, of the performance measures
 6-8     required by Section 2308.104, Government Code, as amended by this
 6-9     Act, on or before September 1, 2002.