SRC-VRA C.S.S.B. 280 78(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 280
78R11834 KSD-DBy: Nelson
Government Organization
4/12/2003
Committee Report (Substituted)


This analysis utilizes the Texas Sunset Advisory Commission analysis of S.
B. 280 relating to the continuation and functions of the Texas Workforce
Commission.  


BACKGROUND AND PURPOSE 

The Texas Workforce Commission (TWC) was created in 1995 by the 74th Texas
Legislature to merge employment and training programs from 10 agencies
into a single, locally-controlled workforce system.  TWC's two key
functions are overseeing employment and job training services provided
through local workforce development boards, and operating the state's
unemployment insurance system. TWC is subject to the Sunset Act and will
be abolished on September 1, 2003, unless continued by the legislature.
As a result of its review of TWC, the Sunset Advisory Commission
recommended continuation of the agency and several statutory modifications
that are contained in this legislation. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly delegated to the Texas Workforce
Commission in SECTION 4.03 (Section 302.048, Labor Code) and SECTION 7.03
(Section 132.306, Education Code) of this bill.  In addition, under the
general rulemaking authority already granted to the policymaking body,
rules may be developed to implement other new provisions found in this
bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  CONTINUATION OF COMMISSION; GUIDELINES REGARDING

FUNCTIONS OF COMMISSION AND STAFF.

SECTION 1.01.  Amends Chapter 301A, Labor Code, by adding Section 301.0015
and amending Section 301.008, as follows: 

Sec.  301.0015.  GUIDELINES REGARDING FUNCTIONS OF COMMISSION STAFF.  (a)
Requires TWC, in administering its functions under this title or another
law, to limit itself to certain activities. 

(b)  Prohibits TWC, in administering its functions under this title or
another law, from performing certain actions.   

Sec. 301.008  Updates the Texas Workforce Commission's Sunset date to
September 1, 2009. 

ARTICLE 2.  MEMBERSHIP ON GOVERNING BODY OF COMMISSION.

SECTION 2.01.  Amends Section 301.002(a), Labor Code, to provide that TWC
is composed of certain individuals. 

SECTION 2.02.  Amends Section 301.003, Labor Code, as follows:
 
 (a)  Defines "Texas trade association."
 
(b)  Modifies standard Sunset language to prohibit a person from serving
as a commissioner if the person or the person's spouse has certain ties to
the agency or an industry regulated by the agency. 

(c)  Prohibits the public member of TWC or the member's spouse from being
an officer, employee, or paid consultant of a Texas trade association in
the field of labor or business. 



SECTION 2.03.  Amends Section 301.004, Labor Code, to update standard
Sunset language to prohibit a person from being a member of TWC or acting
as the agency's general counsel if the person is required to be registered
as a lobbyist related to the operations of the agency. 

SECTION 2.04.  Amends Section 301.006(a), Labor Code, to require the
governor to designate the chair of TWC from among the membership.  Updates
standard Sunset language to clarify that the chair serves in that capacity
at the pleasure of the governor.   

SECTION 2.05.  Amends Section 301.007, Labor Code, by amending Subsection
(a) and adding Subsection (c), as follows: 

(a)  Updates standard Sunset language to specify the grounds for removing
a member.  Clarifies a distinction between the duties of TWC, meaning the
agency as a whole; and the duties of the members.   

  (c)Updates standard Sunset language relating to a potential ground for
removal. 

SECTION 2.06.  Amends, Chapter 301A, Labor Code, by adding Section
301.0075, to add standard Sunset language to require members to complete
training before assuming their duties.  

SECTION 2.07.  Specifies that the changes to member qualifications and
prohibitions apply only to a commissioner appointed on or after September
1, 2003.     

ARTICLE 3.  POWERS AND DUTIES

SECTION 3.01.  Amends Section 301.023, Labor Code, to update standard
Sunset language requiring TWC to maintain information on written
complaints and notify the parties about policies for and status of
complaints. 

SECTION 3.02.  Amends Section 301.043, Labor Code, to update standard
Sunset language requiring the executive director to inform the members of
the commission and employees of the qualifications and responsibilities
for office. 

SECTION 3.03.  Amends Section 301.045 (a) and (b), Labor Code, to add
Subsection (a-1), to update standard Sunset language requiring TWC to have
a current equal employment opportunity policy. 

SECTION 3.04.  Amends Chapter 301C, Labor Code, by adding Sections 301.046
and 301.047, to add standard Sunset language requiring the executive
director to inform employees about the State Employee Incentive Program.
Clarifies that employees of TWC are directly accountable to the executive
director. 

SECTION 3.05.  Amends the heading to Section 301.061, Labor Code, to read
as follows: 
 
Sec.  301.061.   GENERAL POWERS AND DUTIES OF COMMISSION AND EXECUTIVE
DIRECTOR. 

SECTION 3.06.  Amends Sections 301.061(a) and (b), Labor Code, as follows:

(a)  Requires TWC to provide the public with a a reasonable opportunity to
appear before  TWC and to speak on any issue under the jurisdiction of
TWC, rather than adopt rules as necessary for the administration of this
title. 

  (b)  Requires the executive director to manage certain affairs and
operations. 

SECTION 3.07.  Amends Chapter 301D, Labor Code, by adding Sections
301.0681, 301.0682, and 301.069 to update standard Sunset language on
policies on technological solutions and negotiated rulemaking and
alternative dispute resolution policy.  Requires TWC to meet the needs of
businesses in this state and to equip workers and job seekers with the
skills required to compete for jobs in this state.     

SECTION 3.08.  Specifies that changes to TWC's written complaint and
notification policy apply only to written complaints filed on or after the
effective date of the bill, September 1, 2003. 

SECTION 3.09.  Specifies that TWC must implement an equal employment
opportunity policy, make effective use of technology, develop a policy
that encourages the use of negotiated rulemaking, and partner with the
business community not later than February 1, 2004. 

ARTICLE 4.  WORKFORCE DEVELOPMENT

SECTION 4.01.  Amends Section 302.006(a), Labor Code, to authorize rather
than require, TWC to develop and administer a program under which TWC
awards scholarships in the amount of $1,000 each for professional
child-care training to eligible recipients. 

SECTION 4.02.  Amends Chapter 302A, Labor Code, by adding Sections
302.0042, 302.0043, and 302.013, to require TWC to conduct an annual
evaluation of child care allocation formulas to ensure that local child
care needs and costs are reflected in the formulas.  Specifies that the
evaluation assess each local workforce board area's use of current
allocations, ability to meet performance measures, general cost of care in
the area, poverty rate relative to state poverty rate, and other factors.
Requires TWC to track employment-related outcomes of parents receiving
subsidized child care, including whether parents who receive child care
get and keep jobs, whether their earnings increase, how long parents
receive care, and the reasons parents leave care.  Requires TWC to
periodically analyze the information collected by TWC under this section
and to compile its findings regarding the effectiveness of TWC's child
care program in helping parents receiving subsidized child care to
maintain employment or to move toward selfsufficiency.  Establishes a
nine-member Local Workforce Board Advisory Committee to advise TWC on the
programs, policies, and rules that affect the boards and local workforce
operations. Requires the executive committee of the Workforce Leadership
of Texas (WLT) to appoint the committee members, consisting of nine
representatives from WLT. 

SECTION 4.03.  Amends Chapter 302C, Labor Code, by adding Section 302.048,
to require TWC to develop, by rule, criteria to assess local workforce
development boards' overall capacity to administer and oversee local funds
and services. Requires TWC to publish the results of how well each board
is doing in meeting these criteria on the agency's Web site.  Requires TWC
to develop a set of performance measures to evaluate how well local
workforce development boards, and individual local workforce centers, are
performing, and make that information available to the public on the
agency's Web site. 

SECTION 4.04.  Amends Chapter 302D, Labor Code, by adding Section 302.065,
to require local workforce development boards to streamline the delivery
of services in  local career development centers by integrating the
operation of block grant programs and workforce services.  Requires TWC,
in consultation with local workforce development boards, to ensure that
state-level rules, policies, procedures, and organizational structures
support the integration of workforce services and related support services
at the local level.  Requires each local career development center that
provides workforce services to provide integrated eligibility
determination for workforce services and case management for a customer
receiving workforce services.  

SECTION 4.05.  Requires The commissioners to adopt rules establishing
criteria to evaluate  local workforce development boards not later than
May 1, 2004. 

SECTION 4.06.  Requires TWC to assess local workforce development boards'
overall capacity to administer and oversee local funds and services, not
later than September 1, 2004. 

SECTION 4.07.  Requires TWC to implement an evaluation of child care
allocation formulas and employment outcomes of parents receiving
subsidized child care, as soon as possible after the effective date of the
bill, September 1, 2003. 

SECTION 4.08.  Requires TWC, by September 1, 2004, to conduct a review of
its programs, rules, policies, procedures, and organizational structure to
identify barriers to service integration; conduct three to five pilot
projects in different local workforce board areas to identify best methods
to integrate services; and modify and develop TWC's programs, rules,
policies, procedures, and organizational structure to support service
integration.  Allows TWC to request a waiver from federal requirements to
implement service integration.  Requires TWC to submit a report by January
15, 2005, to the 79th Legislature regarding the results of the pilot
projects. 

ARTICLE 5.  ADULT EDUCATION AND LITERACY ISSUES

SECTION 5.01.  Amends Chapter 301, Labor Code, by adding Subchapter I, to
require the Texas Education Agency (TEA) and TWC to improve the
coordination and implementation of adult education and literacy services.
Requires TWC, under contract with TEA, to develop a workplace literacy and
basic skills curriculum.  Requires TWC to evaluate existing efforts and
potential cost savings resulting from such a curriculum; contract for
development assistance; target up to five industry sectors that would
benefit; pilot test the curriculum in those industry sectors; and develop
appropriate credentials associated with the curriculum.  This section
expires September 1, 2005. 

SECTION 5.02.  Amends Section 302.021(a), Labor Code, to make technical
changes to delete an incorrect reference to adult education programs that
were not consolidated at TWC, and to remove outdated language referring to
the Job Training Partnership Act.  Changes reference to the words
"proprietary schools" to "career schools and colleges."  

SECTION 5.03.  Amends Section 29.252, Subsection (a), Education Code, by
adding Subsection (a-1), to require TEA to collaborate with TWC to improve
the coordination and implementation of adult education and literacy
services, and to monitor and evaluate educational and employment outcomes
of students who participate in TEA adult education and literacy programs.
Requires TEA to use existing funds to contract with TWC for the
development of a workplace literacy and basic skills curriculum.  The
requirement for TEA to contract with TWC for a curriculum expire September
1, 2005. 

SECTION 5.04.  Amends Chapter 2308C, Government Code, by adding Section
2308.1016, to require the Texas Council on Workforce and Economic
Competitiveness ( council) to evaluate adult education and literacy
programs at the Texas Education Agency (TEA) and TWC, to identify any
problems, including any duplication of planning and lack of client
information sharing.  Requires the council to develop and implement
immediate and long-term strategies for improving any problems affecting
the delivery of services.  Requires the council to develop a system to
monitor and evaluate the employment outcomes of participants in
TEA-administered adult education and literacy programs.  Requires the
council to report to the governor and the legislature problems identified,
and the result of measures taken to address them.  Requires the council to
identify the agency responsible for implementing each strategy, and a
schedule for implementation. 

SECTION 5.05.  Amends Section 2308.104, Government Code, by adding
Subsection (i), to require the council to include any long-term strategies
for improving the delivery of adult education and literacy services in its
strategic plan. 

SECTION 5.06.  Requires TWC to collaborate with TEA to improve the
coordination and implementation of adult education and literacy as soon as
possible after the effective date of the  bill, September 1, 2003.  

SECTION 5.07.  Requires TWC, under contract with TEA, to develop a
workplace literacy and basic skills curriculum by September 1, 2005. 

SECTION 5.08.  Requires TEA, as soon as possible after the effective date
of the bill, September 1, 2003, to collaborate with TWC to improve the
coordination and implementation of adult education and literacy, and to
contract with TWC to implement a workplace literacy and basic skills
curriculum. 

SECTION 5.09.  Requires the council, by December 31, 2003, to develop
long-range strategies to facilitate delivery of adult education and
literacy services, and include them in the council's strategic plan. 

ARTICLE 6.  PARTIAL TRANSFERS OF UNEMPLOYMENT

COMPENSATION EXPERIENCE RATES

SECTION 6.01.  Amends Section 204.084 (c), Labor Code, and adds Subsection
(d), to authorize TWC to deny a partial transfer of unemployment
compensation experience if TWC determines the acquisition or
reorganization was done primarily to qualify for a reduced unemployment
insurance tax rate by circumventing the experience rating system or
manipulating the experience rating system by minimizing the impact of
chargebacks to the predecessor employer's tax account.   Establishes a
one-year time limit for employers to file an application for a partial
transfer due to an acquisition or reorganization.  Prohibits partial
transfers for part of an organization, trade, or business that cannot
operate independently.  The part of the business being transferred would
have to be a stand-alone part of the business, able to operate on its own,
and not be just a few select employees or a particular division of the
business. 

SECTION 6.02.  Specifies that changes to requirements for partial
transfers of unemployment compensation experience apply only to an
acquisition of an organization, trade, or business that occurs on or after
the effective date of the bill, September 1, 2003. 

ARTICLE 7.  CAREER SCHOOLS AND COLLEGES

SECTION 7.01.  Amends Chapter 132A, Education Code, by adding Section
132.0015, to change all references to the words "proprietary schools" to
mean "career schools and colleges" in this code or another law. 

SECTION 7.02.  Amends Section 132.061, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  Clarifies that a closing proprietary school must make full
refunds to students, and that each officer, director, and owner of a
career school is personally liable for the amount of any refund owed.  

SECTION 7.03.  Amends Chapter 132, Education Code, by adding Subchapter J,
to authorize TWC to issue a cease-and-desist order to bring an unlicensed
proprietary school into compliance with state law.  Only schools that fail
to respond to the cease-and-desist order would be referred to the Consumer
Protection Division of the Office of the Attorney General for further
action. Requires TWC to adopt rules as necessary to implement the changes. 

SECTION 7.04.  Amends Section 132.241 (a), (b), (d), and (e), Education
Code, and adds Subsections (f) and (g), to change all references to the
words "proprietary schools" to "career schools and colleges."  Increases
the amount that triggers the replenishment of the proprietary school
Tuition Protection Fund (TPF) from $200,000 to $400,000.  Increases the
ceiling on the TPF from $250,000 to $500,000 by September 1, 2005.
Clarifies that refunds from the TPF depend on available funding, and that
students might not receive a full refund of prepaid tuition from TWC if a
proprietary school closes. Outlines the factors TWC can take into
consideration if paying full student refunds is not possible.  Provides
that notwithstanding Subsections (b) and (e), in the state fiscal year
ending August 31, 2004, TWC is required to collect a fee under  Subsection
(b) only if on January 1 of that year the amount in the fund is less than
$300,000 and the balance of the tuition protection fund is prohibited from
exceeding $375,000.  Provides that this subsection expires September 1,
2005. 

SECTION 7.05.  Amends Section 132.242, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  Increases from $50,000 to $150,000 the amount that can be
spent per school closure from the Tuition Protection Fund. 

SECTION 7.06.  Amends Section 52.32(b), Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."   

SECTION 7.07.  Amends Section 53.02(5), Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges.  

SECTION 7.08.  Amends Section 54.6001, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.09.  Amends Section 54.601(9), Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges." 

SECTION 7.10.  Amends Section 54.605(a), Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."    

SECTION 7.11.  Amends Section 54.618(b), Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.12.  Amends Section 54.619(h), Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.13.  Amends heading of Chapter 132, Education Code, to change
the reference to "proprietary schools" to "career schools and colleges." 

SECTION 7.14.  Amends Section 132.001, Subdivisions (1) - (8) and (10) and
(12), Education Code, and adds Subdivision (13).  Changes all references
to the words "proprietary schools" to "career schools and colleges."
Defines "division."  

SECTION 7.15.  Amends Section 132.002(a), Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  Includes a conforming change to update a reference to a
recoded statute. 

SECTION 7.16.  Amends Sections 132.021(a), (b), and (d), Education Code,
to change all references to the words "proprietary schools" to "career
schools and colleges," and to clarify that The commissioners, meaning the
three full-time commissioners, have responsibility for adopting rules and
policies for carrying out this chapter.  

SECTION 7.17.  Amends Section 132.022, Education Code,  to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.18.  Amends Section 132.023, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  Clarifies that the commissioners, meaning the three full-time
commissioners, have responsibility for adopting rules; and that staff have
responsibility for implementing policy. 

SECTION 7.19.  Amends Section 132.051, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.20.  Amends Section 132.052, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

 SECTION 7.21.  Amends Section 132.053, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  Clarifies a distinction between the duties of TWC, meaning the
agency as a whole.  

SECTION 7.22.  Amends Section 132.054, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.23.  Amends Section 132.055, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.24.  Amends Section 132.056, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.25.  Amends Section 132.058, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.26.  Amends Sections 132.059(a), (b), and (d), Education Code,
to change all references to the words "proprietary schools" to "career
schools and colleges."  

SECTION 7.27.  Amends Section 132.060, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.28.  Amends Section 132.062, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.29.  Amends Section 132.063, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.30.  Amends Section 132.064, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.31.  Amends Section 132.151, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.32.  Amends Section 132.153, Education Code,  to clarify a
distinction between the duties of TWC, meaning the agency as a whole.
Changes all references to the words "proprietary schools" to "career
schools and colleges."  

SECTION 7.33.  Amends Section 132.154(a), Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.34.  Amends Section 132.156, Education Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.35.  Amends Sections 132.157(a), (b), (c), and (d), Education
Code, to change all references to the words "proprietary schools" to
"career schools and colleges."  

SECTION 7.36.  Amends Sections 132.201(a), (c), (d), (e), (f), (h), and
(i), Education Code, to change all references to the words "proprietary
schools" to "career schools and colleges."  

SECTION 7.37.  Amends Section 52.013(b), Government Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.38.  Amends Section 305.002(3), Labor Code,  to change all
references to the words "proprietary schools" to "career schools and
colleges."  

SECTION 7.39.  Amends Section 305.023, Labor Code, to change all
references to the words "proprietary schools" to "career schools and
colleges."  

 SECTION 7.40.  Amends Subsection E, Section 2.23A, Texas Non-Profit
Corporation Act (Article 1396-2.23A, V.T.C.S.), to change all references
to the words "proprietary schools" to "career schools and colleges."
Includes conforming changes to update agency names. 

ARTICLE 8.  REPEALER

SECTION 8.01.  Repeals Section 201.002, Labor Code, to eliminate the
application of the Texas Sunset Act to the Texas Employment Commission.
This section was replaced by Section 301.008, Labor Code, to apply the
Texas Sunset Act to TWC.  Repeals Section 301.006, Labor Code, to
eliminate an outdated section related to Private Industry Councils.
Repeals Section 302.005 (k), Labor Code, to eliminate a section on
Child-Care Training Center Pilot Programs that ended in 1999.   

ARTICLE 9.  GENERAL CONFORMING AMENDMENTS

SECTION 9.01.  Amends Section 30.103, Education Code, with a conforming
change to update the agency name. 

SECTION 9.02.  Amends Sections 501.095(d), Government Code,  to require
TWC, to develop a memorandum of understanding (MOU). 

SECTION 9.03.  Amends Section 531.045(b), Government Code, to clarify that
the executive director of TWC appoints a representative of TWC to the
Interagency Task Force on Electronic Benefits Transfers. 

SECTION 9.04.  Amends Section 572.003(c), Government Code, with conforming
changes to update agency names, and to clarify a distinction between the
duties of TWC, meaning the agency as a whole; and the duties of the
commissioners, meaning the three full-time commissioners, acting as the
governing body of the agency.  Includes a conforming change to delete a
reference to an agency that no longer exists. 

SECTION 9.05.  Amends Section 656.001, Government Code, with a conforming
change to update the agency name. 

SECTION 9.06.  Amends Section 656.021(l), Government Code, with a
conforming change to update the agency name, and to clarify a distinction
between TWC, meaning the agency as a whole.  

SECTION 9.07.  Amends Section 657.009, Government Code, with a conforming
change to update the agency name, and to clarify a distinction between the
duties of TWC, meaning the agency as a whole.  

SECTION 9.08.  Amends Section 772.0031(a), Government Code, to clarify
that the executive director of TWC appoints a representative of TWC to the
Human Resource Task Force.  

SECTION 9.09.  Amends Section 2162.051(a), Government Code, to clarify a
distinction between TWC, meaning the agency as a whole.  

SECTION 9.10.  Amends Section 115.002(c), Human Resources Code, to clarify
that the executive director of TWC is an ex-officio member of the
Governor's Committee on People with Disabilities. 

SECTION 9.11.  Amends Section 61.005(a), Labor Code, to clarify that
agency staff, or an authorized representative, have responsibility for
implementing procedures tied to a person's refusal to obey a subpoena
issued by the agency. 

SECTION 9.12.  Amends Section 62.107(c), Labor Code, with  conforming
change to update the agency name. 

 SECTION 9.13.  Amends Section 201.011(8), Labor Code, to clarify a
distinction between the duties of TWC, meaning the agency as a whole.  

SECTION 9.14.  Amends Sections 306.007(a) and (b), Labor Code, to require
TWC through project RIO to assist in the reintegration into the labor
force those persons formerly sentenced to the institutional division or
the state jail division.  Clarifies a distinction between the duties of
TWC, meaning the agency as a whole.  Includes a conforming change to
update an agency name. 

ARTICLE 10.  EFFECTIVE DATE

SECTION 10.01.  Effective date:  September 1, 2003, except as otherwise
provided by this Act.