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Amend CSSB 280 (house committee printing) by adding the 
following appropriately numbered SECTIONS to ARTICLE 4 of the bill 
and renumbering the other SECTIONS of ARTICLE 4 of the bill 
appropriately:
	SECTION __.  Section 2308.264, Government Code, is amended 
by amending Subsections (a), (b), and (d) and adding Subsections 
(a-1), (e), and (f) to read as follows:
	(a)  Except as otherwise provided by this section, a [A] 
board may not directly provide workforce training or one-stop 
workforce [and] services.
	(a-1)  A board may not act as a fiscal agent for any entity 
that contracts with the board to provide one-stop workforce 
services.
	(b)  A board may request from the Texas Workforce Commission
[council] a waiver of Subsection (a).
	(d)  If a board receives a waiver to provide workforce 
training and one-stop workforce services, the evaluation of results 
and outcomes is provided by the Texas Workforce Commission
[council].
	(e)  The Texas Workforce Commission by rule shall establish 
contracting guidelines for boards under this section, including 
guidelines designed to:
		(1)  ensure that each independent contractor that 
contracts to provide one-stop workforce services under this section 
has sufficient financial security; and
		(2)  prevent potential conflicts of interest between  
boards and entities that contract with boards under this section.
	(f)  The Texas Workforce Commission shall ensure that each 
board complies with this section and may approve a local plan under 
Section 2308.304 only if the plan complies with this section.
	SECTION __.  Section 2308.267(b), Government Code, is 
amended to read as follows:
	(b)  A board's staff shall be separate from and independent 
of any organization providing workforce education or workforce 
training and services in the workforce development area.  A board's 
staff may not direct or control the staffing of any entity providing 
one-stop workforce services.
	SECTION __.  (a)  The Texas Workforce Commission shall adopt 
rules as required by Section 2308.264(e), Government Code, as added 
by this article, not later than March 1, 2004.  Until the commission 
has adopted rules as required by that section, the commission may 
not approve a new local plan or contract:
		(1)  that uses a managing director or a professional 
employment organization for the delivery of one-stop workforce 
services; or
		(2)  under which an independent contractor provides 
one-stop workforce services, unless the plan or contract requires 
the independent contractor to:
			(A)  directly employ staff to provide one-stop 
workforce services; and     
			(B)  have direction and control over the staff 
providing the one-stop workforce services, including the right to 
hire, fire, discipline, and reassign the staff.
	(b)  Rules adopted by the Texas Workforce Commission under 
Section 2308.264(e), Government Code, as added by this article, 
apply to any existing local plan adopted by a local workforce 
development board and any existing contract for one-stop workforce 
services.  If an existing commission-approved local plan or 
contract that uses a managing director or a professional employment 
organization for the delivery of one-stop workforce services does 
not comply with the rules adopted under Section 2308.264(e), 
Government Code, as added by this article, the board operating 
under the plan or contract shall comply with the rules not later 
than September 1, 2004, and may continue to operate under the plan 
or contract until that date.