1-1     By:  Lucio                                             S.B. No. 429
 1-2           (In the Senate - Filed January 26, 2001; January 29, 2001,
 1-3     read first time and referred to Committee on Business and Commerce;
 1-4     March 26, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; March 26, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 429                    By:  Lucio
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the funding and administration of certain activities of
1-11     the Council on Workforce and Economic Competitiveness.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subsection (b), Section 2308.065, Government
1-14     Code, is amended to read as follows:
1-15           (b)  A state agency represented on the council shall provide
1-16     funds for the support of the council in proportion to the agency's
1-17     financial participation in the workforce development system.  The
1-18     council, with the governor's approval, shall establish a funding
1-19     formula to determine the level of support each agency must provide.
1-20           SECTION 2.  Section 2308.101, Government Code, is amended to
1-21     read as follows:
1-22           Sec. 2308.101.  GENERAL DUTIES.  (a)  The council shall:
1-23                 (1)  promote the development of a well-educated, highly
1-24     skilled workforce in this state;
1-25                 (2)  advocate the development of an integrated
1-26     workforce development system to provide quality services addressing
1-27     the needs of business and workers in this state;
1-28                 (3)  recommend to the governor the designation or
1-29     redesignation of workforce development areas for the local planning
1-30     and delivery of workforce development;
1-31                 (4)  identify and recommend to the governor incentives
1-32     to encourage the consolidation, on a regional labor market basis,
1-33     of:
1-34                       (A)  local boards, councils, and committees; and
1-35                       (B)  service delivery areas authorized under [the
1-36     Job Training Partnership Act (29 U.S.C. Section 1501 et seq.) or
1-37     other] federal workforce legislation;
1-38                 (5)  review plans for local workforce development and
1-39     make recommendations to the governor for approval;
1-40                 (6)  evaluate the effectiveness of the workforce
1-41     development system;
1-42                 (7)  use the administrative records of the state's
1-43     unemployment compensation program and other sources as appropriate
1-44     in evaluating the workforce development system;
1-45                 (8)  encourage, support, or develop research and
1-46     demonstration projects designed to develop new programs and
1-47     approaches to service delivery;
1-48                 (9)  recommend measures to ensure that occupational
1-49     skills training is:
1-50                       (A)  provided in occupations that are locally in
1-51     demand; and
1-52                       (B)  directed toward high-skill and high-wage
1-53     jobs;
1-54                 (10)  monitor the operation of the state's workforce
1-55     development system to assess the degree to which the system is
1-56     effective in achieving state and local goals and objectives;
1-57                 (11)  develop and recommend to the governor criteria
1-58     for the establishment of local workforce development boards;
1-59                 (12)  carry out the federal and state duties and
1-60     responsibilities of advisory councils under applicable federal and
1-61     state workforce development laws or regulations;
1-62                 (13)  report periodically to the governor and the
1-63     legislature; and
1-64                 (14)  provide annual reports to the governor and the
 2-1     legislature, including an annual report analyzing work development
 2-2     programs that focus on welfare to work initiatives.
 2-3           (b)  The council shall provide the information required to be
 2-4     reported under Subsections (a)(13) and (14) and Section 2308.104(a)
 2-5     to the Texas Workforce Commission.  The Texas Workforce Commission
 2-6     shall include information provided under this subsection that
 2-7     relates to the administration and operation of the state's
 2-8     workforce development system with other information the commission
 2-9     provides to the public on the Internet.
2-10           SECTION 3.  Section 2308.104, Government Code, is amended to
2-11     read as follows:
2-12           Sec. 2308.104.  STRATEGIC PLAN.  (a)  The council shall
2-13     develop and recommend to the governor and report to the legislature
2-14     a single strategic plan that establishes the framework for the
2-15     budgeting and operation of the workforce development system,
2-16     including school to careers and welfare to work components,
2-17     administered by agencies represented on the council.  The council
2-18     shall annually report to the governor and the legislature on the
2-19     implementation of the strategic plan.
2-20           (b)  The council shall engage in strategic planning by
2-21     selecting or developing two types of performance measures as
2-22     described by Subsections (c) and (d).  To the fullest extent
2-23     possible, all measures must be selected from those already
2-24     developed and approved before September 1, 2001, by one or more
2-25     state agencies that administer workforce programs.  The council may
2-26     develop a new measure only if the council:
2-27                 (1)  identifies a gap in accountability; or
2-28                 (2)  determines that at least one state agency
2-29     administering a workforce program cannot report under the measures
2-30     developed and approved before September 1, 2001.
2-31           (c)  The first type of performance measure consists of formal
2-32     measures identifying outcomes that are essentially consistent
2-33     across all workforce programs.  Job placement rates, job retention
2-34     rates, and wage rates may be included among those measures.  The
2-35     council may develop or select not more than five formal measures.
2-36     The council shall develop or select each formal measure in
2-37     consultation with the state agencies required to report under this
2-38     subsection.  Once approved by the governor and the Legislative
2-39     Budget Board, a formal measure becomes part of the state's
2-40     performance budget and accounting system and applies to each state
2-41     agency that administers a workforce program.
2-42           (d)  The second type of performance measure consists of less
2-43     formal measures to provide information determined by the council to
2-44     be essential in development of the strategic plan under this
2-45     section.  Employer participation rates, customer satisfaction
2-46     levels, and educational attainment may be included among those
2-47     measures.  The council shall develop or select each less formal
2-48     measure with the approval of the governor and in consultation with
2-49     the state agencies required to report under this subsection.  The
2-50     Legislative Budget Board shall provide technical assistance to the
2-51     council to ensure that the measures and associated reporting
2-52     criteria are consistent with the state's performance budget and
2-53     accounting system.  The council may exempt a state agency that
2-54     administers a workforce program from any requirement to use a less
2-55     formal measure.
2-56           (e)  In addition to the other requirements of this chapter,
2-57     the strategic plan recommended by the council must recognize and
2-58     address literacy and basic education as activities that are
2-59     critical to the well-being of individuals and the state without
2-60     regard to whether the training and education is directed at
2-61     preparing an individual for employment.
2-62           (f) [(c)]  The council shall include in the strategic plan
2-63     goals, objectives, and performance measures for the workforce
2-64     development system that involve programs of all state agencies that
2-65     administer workforce programs [are represented on the council].
2-66           (g) [(d)]  On approval of the plan by the governor, an agency
2-67     administering a workforce program [represented on the council]
2-68     shall use the strategic plan to develop the agency's operational
2-69     plan.
 3-1           SECTION 4.  Section 2308.151, Government Code, is amended by
 3-2     adding Subsection (c) to read as follows:
 3-3           (c)  The council shall establish, with the approval of the
 3-4     governor, a funding formula to determine the level of support each
 3-5     agency administering a workforce program must provide to operate
 3-6     the automated follow-up and evaluation system required by this
 3-7     section.
 3-8           SECTION 5.  (a)  This Act takes effect September 1, 2001.
 3-9           (b)  The Council on Workforce and Economic Competitiveness
3-10     and the Legislative Budget Board shall complete the development,
3-11     review, and approval, as appropriate, of the performance measures
3-12     required by Section 2308.104, Government Code, as amended by this
3-13     Act, on or before September 1, 2002.
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