78R14628 KSD-D
By: Nelson S.B. No. 280
Substitute the following for S.B. No. 280:
By: Keffer of Eastland C.S.S.B. No. 280
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Workforce
Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. CONTINUATION OF COMMISSION; GUIDELINES REGARDING
FUNCTIONS OF COMMISSION AND STAFF
SECTION 1.01. Subchapter A, Chapter 301, Labor Code, is
amended by adding Section 301.0015 and amending Section 301.008 to
read as follows:
Sec. 301.0015. GUIDELINES REGARDING FUNCTIONS OF
COMMISSION AND STAFF. (a) In administering its functions under
this title or another law, the commission shall limit its
activities to:
(1) setting commission policies, including policies
that clearly separate the policymaking responsibilities of the
commission and the management responsibilities of the executive
director and commission staff;
(2) giving general direction to the executive director
regarding the implementation of the commission's policies, and
holding the executive director accountable for implementing the
policies;
(3) approving the commission's budget recommendation
to the legislature;
(4) reviewing under Subchapter D, Chapter 212, the
decision of an appeal tribunal regarding unemployment
compensation;
(5) adopting rules necessary to administer the
commission's policies, including rules necessary for the
administration of this title and rules governing required reports,
procedures, and orders;
(6) responding to questions and comments that are
directed to the commission by the executive director and that
relate to setting or clarifying commission policies or relate to
other matters of general interest to the commission; and
(7) requesting information from commission staff.
(b) Except as provided by Subsection (c), the commission may
conduct the activities listed in Subsection (a) only when acting as
a governmental body.
(c) The commission, acting as a governmental body, or an
individual member of the commission may conduct the activities
listed in Subsections (a)(6) and (7).
(d) In administering its functions under this title or
another law, the commission, acting as a governmental body, or an
individual member of the commission may not:
(1) direct the day-to-day operations of the executive
director or other commission staff; or
(2) establish the details for the implementation of
commission policies or direct the executive director or other
commission staff about those details.
Sec. 301.008. APPLICATION OF SUNSET ACT. The Texas
Workforce Commission is subject to Chapter 325, Government Code
(Texas Sunset Act). Unless continued in existence as provided by
that chapter, the commission is abolished September 1, 2009 [2003].
ARTICLE 2. MEMBERSHIP ON GOVERNING BODY OF COMMISSION
SECTION 2.01. Section 301.002(a), Labor Code, is amended to
read as follows:
(a) The commission is composed of three members:
(1) one member who is [of whom shall be] a
representative of labor;
(2) one member who is [of whom shall be] a
representative of employers; and
(3) one member who is a representative of [whom shall
represent] the public.
SECTION 2.02. Section 301.003, Labor Code, is amended to
read as follows:
Sec. 301.003. MEMBER RESTRICTIONS. (a) In this section,
"Texas trade association" means a cooperative and voluntarily
joined statewide association of business or professional
competitors in this state designed to assist its members and its
industry or profession in dealing with mutual business or
professional problems and in promoting their common interest.
(b) A member of the commission may not engage in any other
business, vocation, or employment during the member's term on the
commission.
(c) A person may not be a member of the commission or an
employee of the commission employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.), and its subsequent amendments, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of labor,
business, workforce development, child care, or career schools and
colleges; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of labor,
business, workforce development, child care, or career schools and
colleges.
(d) A person may not serve as a member of the commission if
the person or the person's spouse:
(1) is employed by or participates in the management
of a career school or college or a business entity or other
organization receiving money from the commission;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a career school or college or a
business entity or other organization receiving money from the
commission; or
(3) is registered, certified, licensed, permitted, or
otherwise authorized by the commission.
[(b) The public member of the commission may not be an
officer, employee, or paid consultant of a labor-oriented or
employer-oriented trade association while the member serves on the
commission.]
SECTION 2.03. Section 301.004, Labor Code, is amended to
read as follows:
Sec. 301.004. EFFECT OF LOBBYING ACTIVITY. A person [who is
required to register as a lobbyist under Chapter 305, Government
Code,] may not be [serve as] a member of the commission or act as the
general counsel to the commission if the person is required to
register as a lobbyist under Chapter 305, Government Code, because
of the person's activities for compensation on behalf of a
profession related to the operation of the commission [while so
registered]. If the person ceases to engage in lobbying activity
and files a notice of termination as prescribed by Section 305.008,
Government Code, the person may serve as a member of the commission
or act as the general counsel to the commission.
SECTION 2.04. Section 301.006(a), Labor Code, as renumbered
from Section 202.005, Labor Code, by Section 11.02, Chapter 655,
Acts of the 74th Legislature, Regular Session, 1995, is amended to
read as follows:
(a) The governor shall designate the chair of the commission
from among the members of the commission. The chair shall serve in
that capacity at the pleasure of the governor for a two-year term.
The governor may redesignate the same member to serve consecutive
terms.
SECTION 2.05. Section 301.007, Labor Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) It is a ground for removal from the commission [by
impeachment] that a member:
(1) during any 60-day period, is absent from each
commission meeting for which the member received at least 48 hours'
notice;
(2) does not have at the time of taking office the
qualifications required by Section 301.002 [is unable to discharge
the member's duties for the remainder of the term for which the
member was appointed because of illness or other disability]; [or]
(3) does not maintain during service as a member of the
commission the qualifications required by Section 301.002;
(4) is ineligible for membership on the commission
under Section 301.003 or 301.004;
(5) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(6) is absent from more than half of the regularly
scheduled meetings of the members that the member is eligible to
attend during a calendar year without an excuse approved by a
majority vote of the members [violates a prohibition established by
Section 301.003 or 301.004].
(c) If the executive director has knowledge that a potential
ground for removal exists, the executive director shall notify the
chair of the potential ground. The chair shall then notify the
governor and the attorney general that a potential ground for
removal exists. If the potential ground for removal involves the
chair, the executive director shall notify the next highest ranking
member, who shall then notify the governor and the attorney general
that a potential ground for removal exists.
SECTION 2.06. Subchapter A, Chapter 301, Labor Code, is
amended by adding Section 301.0075 to read as follows:
Sec. 301.0075. MEMBER TRAINING. (a) A person who is
appointed to and qualifies for office as a member of the commission
may not vote, deliberate, or be counted as a member in attendance at
a meeting of the members until the person completes a training
program that complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the commission;
(2) the programs operated by the commission;
(3) the role and functions of the commission;
(4) the rules of the commission, with an emphasis on
the rules that relate to disciplinary and investigatory authority;
(5) the current budget for the commission;
(6) the results of the most recent formal audit of the
commission;
(7) the requirements of:
(A) the open meetings law, Chapter 551,
Government Code;
(B) the public information law, Chapter 552,
Government Code;
(C) the administrative procedure law, Chapter
2001, Government Code; and
(D) other laws relating to public officials,
including conflict-of-interest laws;
(8) civil rights laws relevant to employment programs
offered by the commission; and
(9) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
(c) A person appointed as a member of the commission is
entitled to reimbursement, as provided by the General
Appropriations Act, for the travel expenses incurred in attending
the training program regardless of whether the attendance at the
program occurs before or after the person qualifies for office.
SECTION 2.07. The changes in law made by this article in the
prohibitions or qualifications applying to members of the Texas
Workforce Commission do not affect the entitlement of a member
serving immediately before September 1, 2003, to continue to serve
and function as a member for the remainder of the member's term.
Those changes in law apply only to a member appointed on or after
September 1, 2003.
ARTICLE 3. POWERS AND DUTIES
SECTION 3.01. Section 301.023, Labor Code, is amended to
read as follows:
Sec. 301.023. COMPLAINTS AGAINST COMMISSION. (a) The
commission shall maintain a file on each written complaint filed
with the commission. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the
commission;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the commission closed the file without taking action other than
to investigate the complaint [keep an information file about each
complaint filed with the commission that relates to a service
provided by the commission].
(b) The commission shall provide to the person filing the
complaint and to each person who is a subject of the complaint a
copy of the commission's policies and procedures relating to
complaint investigation and resolution.
(c) The commission, at least quarterly until final
disposition of the complaint, shall notify the person filing the
complaint and each person who is a subject of the complaint of the
status of the investigation unless the notice would jeopardize an
undercover investigation [If a written complaint is filed with the
commission that relates to a service provided by the commission,
the commission, at least quarterly and until final disposition of
the complaint, shall notify the parties to the complaint of the
status of the complaint].
SECTION 3.02. Section 301.043, Labor Code, is amended to
read as follows:
Sec. 301.043. STANDARDS OF CONDUCT INFORMATION. The
executive director or the executive director's designee shall
provide to the members of the commission and employees of the
commission, as often as necessary, information regarding the
requirements for office or employment under this chapter, including
information regarding a person's [their] responsibilities under
applicable laws relating to standards of conduct for state officers
or employees.
SECTION 3.03. Section 301.045, Labor Code, is amended by
amending Subsections (a) and (b) and adding Subsection (a-1) to
read as follows:
(a) The executive director or the executive director's
designee shall prepare and maintain a written policy statement that
implements [to ensure implementation of] a program of equal
employment opportunity to ensure that [under which] all personnel
decisions [transactions] are made without regard to race, color,
disability, sex, religion, age, or national origin.
(a-1) The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, [appointment,] training,
and promotion of personnel, that show the intent of the commission
to avoid the unlawful employment practices described by [are in
compliance with] Chapter 21; and
(2) an [a comprehensive] analysis of the extent to
which the composition of the commission's personnel is in
accordance with state and [workforce that meets] federal law and a
description of [and state guidelines;
[(3) procedures by which a determination can be made
of significant underuse in the commission's workforce of all
persons for whom federal or state guidelines encourage a more
equitable balance; and
[(4)] reasonable methods to achieve compliance with
state and federal law [to appropriately address those areas of
underuse].
(b) The [A] policy statement [under Subsection (a)] must:
(1) [cover an annual period,] be updated annually;
(2) [,] be reviewed by the Commission on Human Rights
for compliance with Subsection (a-1)(1); [(a),] and
(3) be filed with the governor's office.
SECTION 3.04. Subchapter C, Chapter 301, Labor Code, is
amended by adding Sections 301.046 and 301.047 to read as follows:
Sec. 301.046. STATE EMPLOYEE INCENTIVE PROGRAM INFORMATION
AND TRAINING. The executive director or the executive director's
designee shall provide to commission employees information and
training on the benefits and methods of participation in the state
employee incentive program.
Sec. 301.047. COMMISSION EMPLOYEES ACCOUNTABLE TO
EXECUTIVE DIRECTOR. In performing functions required or authorized
by law, employees of the commission are directly accountable to the
executive director.
SECTION 3.05. The heading to Section 301.061, Labor Code,
is amended to read as follows:
Sec. 301.061. GENERAL POWERS AND DUTIES OF COMMISSION AND
EXECUTIVE DIRECTOR.
SECTION 3.06. Sections 301.061(a) and (b), Labor Code, are
amended to read as follows:
(a) The commission shall provide the public with a
reasonable opportunity to appear before the commission and speak on
any issue under the jurisdiction of the commission [adopt rules as
necessary for the administration of this title].
(b) The executive director shall:
(1) administer this title as provided by rules adopted
by the commission;
(2) oversee and manage:
(A) the daily operation and administrative
affairs of the commission; and
(B) the implementation of commission policies
set by the commission;
(3) coordinate the activities of the commission staff
and hold commission staff accountable for the staff's performance
of its duties;
(4) determine the organization of the agency and
methods of procedure of the agency in accordance with this title;
and
(5) [(3)] make expenditures necessary for the
operation of this title.
SECTION 3.07. Subchapter D, Chapter 301, Labor Code, is
amended by adding Sections 301.0681, 301.0682, and 301.069 to read
as follows:
Sec. 301.0681. POLICY ON TECHNOLOGICAL SOLUTIONS. The
commission shall develop and implement a policy requiring the
executive director and commission employees to research and propose
appropriate technological solutions to improve the commission's
ability to perform its functions. The technological solutions
must:
(1) ensure that:
(A) the public is able to easily find information
about the commission on the Internet; and
(B) persons who want to use the commission's
services are able to:
(i) interact with the commission through
the Internet; and
(ii) access any service that can be
provided effectively through the Internet;
(2) be cost-effective; and
(3) be developed through the commission's planning
processes.
Sec. 301.0682. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION POLICY. (a) The commission shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of the commission's rules;
and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the commission's
jurisdiction, other than proceedings conducted by the commission
under Title 2 and this title of this code that are not subject to
Subchapters C-H, Chapter 2001, Government Code.
(b) The commission's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The commission shall designate a trained person to:
(1) coordinate the implementation of the policy
developed under Subsection (a);
(2) serve as a resource for any training needed to
implement the procedures for negotiated rulemaking or alternative
dispute resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the commission.
Sec. 301.069. PARTNERSHIP WITH BUSINESS COMMUNITY. 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,
the commission shall:
(1) partner with the business community to:
(A) identify:
(i) skills required by the business
community;
(ii) key industry sectors in the business
community that are likely to benefit from skill development
services and programs offered by the commission; and
(iii) employment opportunities offered by
the business community; and
(B) develop services and programs that are
designed to equip workers and job seekers with the skills required
by the business community; and
(2) support business and community economic
development activities of local workforce development boards and
the state.
SECTION 3.08. The changes in law made by this article to
Section 301.023, Labor Code, apply only to a written complaint
filed with the Texas Workforce Commission on or after the effective
date of this Act, regardless of whether the conduct or act that is
the subject of the complaint occurred or was committed before, on,
or after the effective date of this Act.
SECTION 3.09. The Texas Workforce Commission shall
implement Sections 301.046, 301.0681, 301.0682, and 301.069, as
added by this article, not later than February 1, 2004.
ARTICLE 4. WORKFORCE DEVELOPMENT
SECTION 4.01. Subchapter A, Chapter 31, Human Resources
Code, is amended by adding Section 31.0121 to read as follows:
Sec. 31.0121. SKILLS ASSESSMENT AND DEVELOPMENT FOR CERTAIN
RECIPIENTS. (a) The Texas Workforce Commission shall ensure that
each local workforce development board assesses the skills
development needs of recipients referred to the CHOICES program
administered by the board.
(b) If, after assessing a recipient's skills development
needs, a local workforce development board determines that the
recipient requires job-specific training for placement in a job
paying wages that equal or exceed the self-sufficiency wage
developed for the board under the Workforce Investment Act of 1998
(29 U.S.C. Section 2801 et seq.), as amended, the board shall:
(1) to the extent allowed by federal law, place the
recipient in training activities designed to improve employment and
wage outcomes and job retention rates; and
(2) ensure that the training activities under
Subdivision (1) target occupations that are in demand by local
employers.
(c) A local workforce development board may use a single
list of targeted occupations that is developed for other training
programs for purposes of meeting the requirements of Subsection
(b)(2).
(d) A recipient participating in the CHOICES program who is
placed in training activities under Subsection (b) may concurrently
engage in those training activities and in work activities.
(e) To meet the requirements of this section, the Texas
Workforce Commission shall use CHOICES program funds and, to the
extent possible, existing funds from other training programs for
which a recipient participating in the CHOICES program may qualify,
including funds from:
(1) other training programs provided under the
Workforce Investment Act of 1998 (29 U.S.C. Section 2801 et seq.),
as amended, or their successor programs;
(2) the skills development fund created under Chapter
303, Labor Code; or
(3) the self-sufficiency fund created under Section
309.002, Labor Code.
SECTION 4.02. Section 302.006(a), Labor Code, is amended to
read as follows:
(a) The commission may [shall] develop and administer a
program under which the commission awards scholarships in the
amount of $1,000 each for professional child-care training to
eligible recipients.
SECTION 4.03. Subchapter A, Chapter 302, Labor Code, is
amended by adding Sections 302.0042, 302.0043, 302.0044, and
302.013 to read as follows:
Sec. 302.0042. EVALUATION OF ALLOCATION FORMULAS FOR CHILD
CARE DEVELOPMENT FUNDS. (a) The commission shall annually
evaluate the formulas used by the commission to distribute federal
child care development funds to local workforce development boards
in order to ensure that the formulas address the child care needs of
each local workforce development board.
(b) The commission's evaluation must assess:
(1) the use of current federal child care funds by each
local workforce development board;
(2) the ability of each local workforce development
board to meet child care performance measures;
(3) the average cost of child care in each local
workforce development area;
(4) the poverty rate of each local workforce
development area compared to the state's poverty rate;
(5) the number of children on waiting lists for child
care in each local workforce development area; and
(6) the number of vacant slots available for child
care placement in each local workforce development area.
Sec. 302.0043. EVALUATION OF EFFECTIVENESS OF SUBSIDIZED
CHILD CARE PROGRAM. (a) To evaluate the effectiveness of the
commission's child care program in helping parents who receive
subsidized child care to maintain employment, the commission shall
compile, regarding each parent receiving subsidized child care from
the commission's child care program, the following information
regarding the wage and employment status of the parent:
(1) if the parent receives both financial assistance
under Chapter 31, Human Resources Code, and subsidized child care,
whether the parent:
(A) finds employment; and
(B) maintains the parent's employment after one
year;
(2) if the parent receives only subsidized child care,
whether the parent:
(A) maintains the parent's employment; and
(B) experiences a change in the parent's earnings
after one year of employment; and
(3) if the parent leaves the child care program:
(A) the parent's reason for leaving the program;
and
(B) whether the parent returns to financial
assistance under Chapter 31, Human Resources Code, or becomes a
recipient of financial assistance under that chapter for the first
time.
(b) The commission may use the wage and employment records
of the parents to determine the employment outcome of the parents.
(c) The commission shall also measure and evaluate the
effectiveness of the commission's child care program in:
(1) improving the training of child care
professionals; and
(2) facilitating collaboration with Head Start, the
Texas Education Agency, the Department of Protective and Regulatory
Services, and the Health and Human Services Commission.
(d) The commission shall periodically analyze the
information collected by the commission under this section and
shall compile its findings regarding the effectiveness of the
commission's child care program.
(e) The commission shall make the information collected by
the commission and the commission's findings available to local
workforce development boards.
(f) Not later than January 15 of each odd-numbered year, the
commission shall report to the legislature regarding the
commission's findings regarding the effectiveness of the
commission's child care program.
Sec. 302.0044. WAGE TRACKING OF TANF CHOICES PROGRAM
RECIPIENTS. (a) The commission, in consultation with local
workforce development boards, shall compile the following
information with regard to each recipient of employment services
under the Temporary Assistance for Needy Families (TANF) CHOICES
program:
(1) whether the recipient is placed in employment
paying wages equal to or exceeding 200 percent of the federal
poverty level for a family that is the size of the recipient's
family; and
(2) if the recipient is placed in employment earning
wages equal to or exceeding the amount described by Subdivision
(1), whether the recipient has earned that amount before the first
anniversary of the date of the recipient's initial date of
employment.
(b) Not later than December 15 of each year, the commission
shall report to the legislature the percentage of recipients of
employment services under the Temporary Assistance for Needy
Families (TANF) CHOICES program who meet the wage criteria
described by Subsections (a)(1) and (2).
Sec. 302.013. LOCAL WORKFORCE DEVELOPMENT BOARD ADVISORY
COMMITTEE. (a) In this section, "advisory committee" means the
local workforce development board advisory committee created under
this section.
(b) The organization composed of a member of and the staff
director of each local workforce development board in this state
shall establish a local workforce development board advisory
committee composed of nine members appointed by the executive
officers of that organization.
(c) The advisory committee shall be composed of:
(1) six members of local workforce development boards
who serve as members of the organization described by Subsection
(b); and
(2) three staff directors of local workforce
development boards who serve as members of the organization
described by Subsection (b).
(d) The members of the advisory committee must represent
different geographic areas of the state.
(e) The advisory committee shall:
(1) meet at least quarterly;
(2) report to the commission at least annually; and
(3) advise the commission and commission staff
regarding the programs, policies, and rules of the commission that
affect the operations of local workforce development boards and the
local workforce delivery system.
SECTION 4.04. Subchapter C, Chapter 302, Labor Code, is
amended by adding Section 302.048 to read as follows:
Sec. 302.048. ASSESSMENT OF LOCAL WORKFORCE DEVELOPMENT
BOARD'S CAPACITY TO OVERSEE AND MANAGE LOCAL FUNDS AND DELIVERY OF
SERVICES. (a) In consultation with local workforce development
boards, the commission by rule shall establish criteria to be used
by the commission to evaluate each local workforce development
board's overall capacity to oversee and manage local funds and the
delivery of local workforce services.
(b) The criteria established under Subsection (a) must
address a local workforce development board's ability to:
(1) develop, maintain, and upgrade comprehensive
fiscal management systems;
(2) hire, train, and retain qualified staff to carry
out the board's oversight activities;
(3) select and oversee local contractors to improve
the delivery of workforce services;
(4) oversee and improve the operations of local career
development centers in the area served by the board;
(5) manage the contractors' performance across
multiple board programs; and
(6) identify and resolve long-standing oversight
problems of the board and performance problems of contract
providers.
(c) Based on the criteria prescribed under this section, the
commission shall develop performance measures to be used by the
commission to evaluate each local workforce development board.
(d) The commission shall post the results of the
commission's evaluation of each local workforce development board
on the commission's Internet website in a format that is readily
accessible to and understandable by a member of the public.
(e) The commission annually shall compile information
provided to the commission by local workforce development boards
that aggregates existing performance measure data on each local
career development center in a consistent format demonstrating
overall performance across multiple programs.
(f) The commission shall post the information compiled by
the commission under Subsection (e) on the commission's Internet
website in a format that is readily accessible to and
understandable by a member of the public.
SECTION 4.05. Subchapter D, Chapter 302, Labor Code, is
amended by adding Section 302.065 to read as follows:
Sec. 302.065. INTEGRATION OF BLOCK GRANT PROGRAMS AND
WORKFORCE SERVICES. (a) To streamline the delivery of services
provided in local career development centers, the commission and
local workforce boards shall integrate the administration of the
following federal block grant programs and the caseworker functions
associated with those programs as provided by this section:
(1) Temporary Assistance for Needy Families (TANF)
CHOICES training and employment programs under Chapters 31 and 34,
Human Resources Code;
(2) child care programs under Chapter 44, Human
Resources Code;
(3) employment and training programs under Title I of
the Workforce Investment Act of 1998 (29 U.S.C. Section 2801 et
seq.) or any subsequent applicable federal legislation; and
(4) the food stamp employment and training program
authorized under 7 U.S.C. Section 2015(d).
(b) The commission, in consultation with local workforce
development boards, shall ensure that state-level performance
measures, rules, policies, procedures, and organizational
structures support the integration of the federal block grant
programs described by Subsection (a) and the caseworker functions
associated with those programs at the local level.
(c) Each local career development center that provides
services through the federal block grant programs described by
Subsection (a) shall provide:
(1) integrated services across the programs;
(2) an integrated determination through a single point
of contact of a customer's eligibility for services under more than
one program; and
(3) integrated case management through a single point
of contact for a customer receiving services under more than one
program.
SECTION 4.06. The Texas Workforce Commission shall adopt
rules to establish criteria to be used to evaluate each local
workforce development board as required by Section 302.048, Labor
Code, as added by this article, not later than May 1, 2004.
SECTION 4.07. The Texas Workforce Commission shall
implement Section 302.048, Labor Code, as added by this article,
not later than September 1, 2004.
SECTION 4.08. The Texas Workforce Commission shall
implement Section 31.0121, Human Resources Code, and Sections
302.0042, 302.0043, and 302.0044, Labor Code, as added by this
article, as soon as possible after the effective date of this Act.
SECTION 4.09. The Texas Workforce Commission shall
implement Section 302.065(c), Labor Code, as added by this article,
not later than September 1, 2007.
SECTION 4.10. (a) Not later than September 1, 2004, the
Texas Workforce Commission shall:
(1) implement Sections 302.065(a) and (b), Labor Code,
as added by this article;
(2) conduct a review of the commission's programs,
rules, policies, procedures, and organizational structure to
identify specific barriers to the integration by the commission of
federal block grant programs and the caseworker functions
associated with those programs;
(3) conduct at least three and not more than five pilot
projects in different local workforce development board areas to
identify the best methods to integrate federal block grant programs
and the caseworker functions associated with those programs; and
(4) modify and develop the commission's programs,
rules, policies, procedures, and organizational structure to
support the integration by the commission of federal block grant
programs and the caseworker functions associated with those
programs.
(b) The commission may request a waiver of any federal
requirement from a federal agency if the commission determines that
the waiver is necessary for the implementation of this section.
(c) Not later than January 15, 2005, the Texas Workforce
Commission shall submit to the 79th Legislature a report regarding
the results of the review and pilot projects conducted by the
commission under Subsection (a) of this section. The report must
include the commission's recommendations for any statutory changes
required to facilitate the integration by the commission of federal
block grant programs and the caseworker functions associated with
those programs.
ARTICLE 5. ADULT EDUCATION AND LITERACY ISSUES
SECTION 5.01. Chapter 301, Labor Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. ADULT EDUCATION AND LITERACY
Sec. 301.151. COOPERATION WITH TEXAS EDUCATION AGENCY TO
IMPROVE ADULT EDUCATION AND LITERACY SERVICES. The commission
shall collaborate with the Texas Education Agency to improve the
coordination and implementation of adult education and literacy
services in this state.
Sec. 301.152. DEVELOPMENT OF WORKPLACE LITERACY AND BASIC
SKILLS CURRICULUM. (a) The commission shall use existing funds to
develop a demand-driven workplace literacy and basic skills
curriculum aimed at assisting local workforce development boards to
equip workers and job seekers with the skills necessary to compete
for current and emerging jobs in this state.
(b) In developing the general curriculum required by
Subsection (a), the commission shall:
(1) evaluate existing efforts and potential cost
savings resulting from designing specific curricula that address
the needs of various industry sectors in the business community;
(2) contract for field work to solicit the assistance
of workers, employers, providers, and local workforce development
boards in developing industry sector curricula;
(3) target up to five industry sectors in the business
community that are likely to benefit from the development of
specific curricula; and
(4) pilot test the curricula within the targeted
industry sectors and adjust the curricula based on feedback
received from workers and employers in those sectors.
(c) Based on the curriculum developed under this section,
the commission shall develop workforce basic skills credentials to
be used to define, measure, and certify the mastery of the basic
skills required by the curricula developed under this section.
(d) This section expires September 1, 2005.
SECTION 5.02. Section 302.021(a), Labor Code, is amended to
read as follows:
(a) The following job-training, employment, and
employment-related educational programs and functions are
consolidated under the authority of the division:
(1) career [adult education programs under Subchapter
H, Chapter 29, Education Code;
[(2) proprietary] school and college programs under
Chapter 132, Education Code;
(2) [(3)] apprenticeship programs under Chapter 133,
Education Code;
(3) [(4)] postsecondary vocational and technical
job-training programs that are not a part of approved courses or
programs that lead to licensing, certification, or an associate
degree under Chapters 61, 130, and 135, Education Code, Subchapter
E, Chapter 88, Education Code, and Subchapter E, Chapter 96,
Education Code;
(4) [(5)] employment programs under Chapter 31, Human
Resources Code;
(5) [(6)] the senior citizens employment program
under Chapter 101, Human Resources Code;
(6) [(7)] the work and family policies program under
Chapter 81;
(7) [(8)] job-training programs funded under [the Job
Training Partnership Act (29 U.S.C. Section 1501 et seq.) and
under] the Workforce Investment Act of 1998 (29 U.S.C. Section 2801
et seq.);
(8) [(9)] the job counseling program for displaced
homemakers under Chapter 304;
(9) [(10)] the reintegration of offenders program
under Chapter 306;
(10) [(11)] the inmate employment counseling program
[under Section 499.051(f), Government Code];
(11) [(12)] the continuity of care program under
Section 501.095, Government Code;
(12) [(13)] a literacy program from state, local,
federal, and private funds available to the state for that purpose;
(13) [(14)] the employment service;
(14) [(15)] the community service program under the
National and Community Service Act of 1990 (42 U.S.C. Section 12501
et seq.);
(15) [(16)] the trade adjustment assistance program
under Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section
2271 et seq.);
(16) [(17)] education, employment, employment
support, training services, activities and programs funded under
Temporary Assistance for Needy Families (42 U.S.C. Section 601 et
seq.);
(17) [(18)] the food stamp employment and training
program authorized under 7 U.S.C. Section 2015(d); and
(18) [(19)] the functions of the State Occupational
Information Coordinating Committee.
SECTION 5.03. Section 29.252(a), Education Code, is amended
to read as follows:
(a) The agency shall:
(1) provide adequate staffing to develop, administer,
and support a comprehensive statewide adult education program and
coordinate related federal and state programs for education and
training of adults;
(2) develop, implement, and regulate a comprehensive
statewide program for community level education services to meet
the special needs of adults;
(3) develop the mechanism and guidelines for
coordination of comprehensive adult education and related skill
training services for adults with other agencies, both public and
private, in planning, developing, and implementing related
programs, including community education programs;
(4) administer all state and federal funds for adult
education and related skill training in this state, except in
programs for which another entity is specifically authorized to do
so under other law;
(5) prescribe and administer standards and
accrediting policies for adult education;
(6) prescribe and administer rules for teacher
certification for adult education;
(7) accept and administer grants, gifts, services, and
funds from available sources for use in adult education; [and]
(8) adopt or develop and administer a standardized
assessment mechanism for assessing all adult education program
participants who need literacy instruction, adult basic education,
or secondary education leading to an adult high school diploma or
the equivalent;
(9) collaborate with the Texas Workforce Commission to
improve the coordination and implementation of adult education and
literacy services in this state; and
(10) monitor and evaluate educational and employment
outcomes of students who participate in the agency's adult
education and literacy programs.
SECTION 5.04. Subchapter C, Chapter 2308, Government Code,
is amended by adding Section 2308.1016 to read as follows:
Sec. 2308.1016. DUTY TO FACILITATE DELIVERY OF INTEGRATED
ADULT EDUCATION AND LITERACY SERVICES. (a) In addition to any duty
imposed under this subchapter, to facilitate the efficient delivery
of integrated adult education and literacy services in this state,
the council shall:
(1) evaluate adult education and literacy programs
administered by the Texas Education Agency and the Texas Workforce
Commission to identify:
(A) any duplication of planning by those agencies
at the state and local level;
(B) any lack of adequate client information
sharing between those agencies; and
(C) any other problems that adversely affect the
delivery of those programs by the agencies;
(2) develop and implement immediate and long-range
strategies to address problems identified by the council under
Subdivision (1); and
(3) develop a system to monitor and evaluate the wage
and employment outcomes of students who participate in the adult
education and literacy programs administered by the Texas Education
Agency, including students referred to the programs by the Texas
Workforce Commission or local workforce development boards, to
ensure the effectiveness of the programs in improving the
employment-related outcomes of the students.
(b) The council shall include in the council's annual report
to the governor and to the legislature:
(1) a list of specific problems identified by the
council under Subsection (a) to be addressed by the council in the
following year; and
(2) the results of any measures taken by the council to
address problems identified by the council under Subsection (a).
(c) The long-range strategies developed by the council
under Subsection (a) must:
(1) identify the agency responsible for implementing
each strategy; and
(2) include a schedule for the implementation of each
strategy.
SECTION 5.05. Section 2308.104, Government Code, is amended
by adding Subsection (i) to read as follows:
(i) The council shall include in the strategic plan the
long-range strategies developed by the council under Section
2308.1016 to facilitate the efficient delivery of integrated adult
education and literacy services in this state.
SECTION 5.06. The Texas Workforce Commission shall
implement Section 301.151, Labor Code, as added by this article, as
soon as possible after the effective date of this Act.
SECTION 5.07. The Texas Workforce Commission shall
implement Section 301.152, Labor Code, as added by this article,
not later than September 1, 2005.
SECTION 5.08. The Texas Education Agency shall implement
Section 29.252(a), Education Code, as amended by this article, as
soon as possible after the effective date of this Act.
SECTION 5.09. The Council on Workforce and Economic
Competitiveness shall implement Sections 2308.1016 and
2308.104(i), Government Code, as added by this article, not later
than December 31, 2003.
ARTICLE 6. ISSUANCE OF OBLIGATIONS
AND IMPOSITION OF ASSESSMENTS FOR
UNEMPLOYMENT COMPENSATION SYSTEM
SECTION 6.01. The heading to Subchapter C, Chapter 203,
Labor Code, is amended to read as follows:
SUBCHAPTER C. ADVANCES FROM FEDERAL TRUST FUND AND
OBLIGATION ASSESSMENT
SECTION 6.02. Section 203.102, Labor Code, is amended to
read as follows:
Sec. 203.102. OBLIGATION [ADVANCE INTEREST] TRUST FUND.
(a) The obligation [advance interest] trust fund is a dedicated
trust fund outside of the state treasury in the custody of the
comptroller.
(b) The commission and governor may use money in the
obligation [advance interest] trust fund without legislative
appropriation to pay:
(1) bond obligations and bond administrative
expenses; and
(2) principal and [pay] interest incurred on advances
from the federal trust fund[; and
[(2) repay temporary transfers of surplus cash that
may be made between the advance interest trust fund and other
funds].
[(c) Subject to legislative appropriation, the commission
may use money in the advance interest trust fund, including any
interest earnings scheduled to be transferred under Section
203.103, for the administration of Chapters 51, 61, and 62.]
SECTION 6.03. Section 203.104, Labor Code, is amended to
read as follows:
Sec. 203.104. LIMITATION ON TRANSFER FROM OBLIGATION
[ADVANCE INTEREST] TRUST FUND TO COMPENSATION FUND. An amount that
is attributable to the portion of the unemployment obligation
assessment authorized by Section 203.105(a)(2) may not be
transferred [The governor may authorize the commission to transfer
money from the advance interest trust fund] to the compensation
fund unless all bond obligations, including bond administrative
expenses, have been fully paid and satisfied. After the
obligations have been fully satisfied, the commission shall
transfer the balance of the obligation trust fund to the
compensation fund [if the governor:
[(1) on the advice of the commission, determines that
funds in the compensation fund will be depleted at the time payment
on an advance from the federal trust fund is due and that depletion
of the funds will cause the loss of some portion of the credit
received by employers against their federal unemployment tax rate;
or
[(2) determines that payment of interest on a federal
loan may be avoided by keeping the balance of the compensation fund
positive].
SECTION 6.04. Section 203.105, Labor Code, is amended to
read as follows:
Sec. 203.105. UNEMPLOYMENT OBLIGATION ASSESSMENT
[ADDITIONAL TAX]. (a) An unemployment obligation assessment shall
be imposed as provided by this section [In addition to other taxes,
a separate tax is imposed on each employer eligible for an
experience tax rate] if after January 1 of a year:
(1) an interest payment on an advance from the federal
trust fund will be due[;] and
[(2)] the estimated amount necessary to make the
interest payment is not available in the obligation trust fund or
[will not be] available otherwise; and
(2) bond obligations are due and the amount necessary
to pay in full those obligations, including bond administrative
expenses, is not available in the obligation trust fund or
available otherwise.
(b) The unemployment obligation assessment rate is the
total of the amounts required to make the payments necessary under
Subsections (a)(1) and (2). The commission shall set the
unemployment obligation assessment rate [of an additional tax under
this section] in an amount sufficient to ensure timely payment of
interest under Subsection (a)(1), but not exceeding two-tenths of
one percent. The commission shall set the unemployment obligation
assessment rate in an amount sufficient to ensure timely payment of
the bond obligations, including administrative expenses, and to
provide an amount necessary in the commission's judgment to enhance
investor acceptance of the bonds. The rate shall be based on a
formula prescribed by commission rule, using the employer's
experience rating from the previous year. The unemployment
obligation assessment rate applies to the same wage base to which
the employer's unemployment tax applies for the [that] year.
(c) The unemployment obligation assessment [An additional
tax under this section] is due at the same time, collected in the
same manner, and [on the date set by the commission and is] subject
to the same penalties and interest as other contributions assessed
under this subtitle [penalty for late payment as the unemployment
tax].
(d) Revenue from the unemployment obligation assessment [an
additional tax] under this section shall be deposited to the credit
of the obligation [advance interest] trust fund under Section
203.102.
SECTION 6.05. Chapter 203, Labor Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F. ISSUANCE OF FINANCIAL OBLIGATIONS
FOR UNEMPLOYMENT COMPENSATION FUND
Sec. 203.251. FINDINGS AND PURPOSE. (a) The legislature
finds that:
(1) it is an essential governmental function to
maintain funds in an amount sufficient to pay unemployment benefits
when due;
(2) at the time of the enactment of this subchapter,
borrowing from the federal government was the only option available
to obtain sufficient funds to pay benefits when the balance in the
compensation fund is depleted;
(3) alternative methods of replenishing the
unemployment compensation fund may reduce the costs of providing
unemployment benefits and employers' cost of doing business in the
state; and
(4) funds representing revenues received from the
unemployment obligation assessment authorized under this
subchapter and any income from the investment of those funds are not
state property.
(b) The purpose of this subchapter is to provide appropriate
methods through which the state may continue the unemployment
compensation program at the lowest possible cost to the state and
employers in the state.
Sec. 203.252. DEFINITIONS; GENERAL PROVISION. (a) In this
subchapter:
(1) "Authority" means the Texas Public Finance
Authority.
(2) "Bond" means any type of revenue obligation,
including a bond, note, certificate, or other instrument, payable
from and secured by a pledge of revenues received from the
unemployment obligation assessment and amounts on deposit in the
obligation trust fund to the extent provided in the proceedings
authorizing the obligation.
(3) "Bond administrative expenses" means expenses
incurred to administer bonds issued under this subchapter,
including fees for paying agents, trustees, and attorneys, and for
other professional services necessary to ensure compliance with
applicable state or federal law.
(4) "Bond obligations" means the principal of a bond
and any premium and interest on a bond issued under this subchapter,
together with any amount owed under a related credit agreement.
(5) "Credit agreement" means a loan agreement, a
revolving credit agreement, an agreement establishing a line of
credit, a letter of credit, an interest rate swap agreement, an
interest rate lock agreement, a currency swap agreement, a forward
payment conversion agreement, an agreement to provide payments
based on levels of or changes in interest rates or currency exchange
rates, an agreement to exchange cash flows or a series of payments,
an option, put, or call to hedge payment, currency, interest rate,
or other exposure, or another agreement that enhances the
marketability, security, or creditworthiness of a bond issued under
this subchapter.
(b) An amount owed by the authority under a credit agreement
shall be payable from and secured by a pledge of revenues received
from the unemployment obligation assessment and amounts on deposit
in the obligation trust fund to the extent provided in the
proceedings authorizing the credit agreement.
Sec. 203.253. REQUEST FOR BOND ISSUANCE. (a) If the
commission determines that the issuance of bonds is necessary to
reduce or avoid the need to borrow or obtain a federal advance under
Section 1201, Social Security Act (42 U.S.C. Section 1321), as
amended, or any similar federal law, or to refinance a previous loan
or advance received by the commission and that bond financing is the
most cost-effective method of funding the payment of benefits, the
commission may request the authority to issue bonds on its behalf.
Before making a request of the authority under this subsection, the
commission must by resolution determine that the issuance of bonds
for the purposes established by this section will result in a
savings to the state and to employers in this state as compared to
the cost of borrowing or obtaining an advance under Section 1201,
Social Security Act (42 U.S.C. Section 1321), as amended, or any
similar federal law.
(b) The commission shall specify in the commission's
request to the authority the maximum principal amount of the bonds,
not to exceed $2 billion for any separate bond issue, and the
maximum term of the bonds, not to exceed 10 years.
(c) The principal amount determined by the commission under
Subsection (b) may be increased to include an amount sufficient to:
(1) pay the costs of issuance of the authority;
(2) provide a bond reserve fund; and
(3) capitalize interest for the period determined
necessary by the commission, not to exceed two years.
Sec. 203.254. ISSUANCE OF BONDS BY AUTHORITY. (a) The
authority shall issue bonds on request by the commission, in
accordance with the requirements of Chapter 1232, Government Code,
and other provisions of Title 9, Government Code, that apply to bond
issuance by a state agency.
(b) The authority shall determine the method of sale, type
of bond, bond form, maximum interest rates, and other terms of the
bonds that, in the authority's judgment, best achieve the economic
goals of the commission and effect the borrowing at the lowest
practicable cost.
(c) The authority may enter into a credit agreement in
connection with the bonds.
Sec. 203.255. BOND PROCEEDS. (a) The proceeds of bonds
issued by the authority under this subchapter may be deposited with
a trustee selected by the authority and the commission or held by
the comptroller in a dedicated trust fund outside the state
treasury in the custody of the comptroller.
(b) Bond proceeds, including investment income, shall be
held in trust for the exclusive use and benefit of the commission.
The commission may use the proceeds to:
(1) repay the principal and interest of previous
advances from the federal trust fund;
(2) pay unemployment benefits by depositing the
proceeds in the unemployment compensation fund, as defined in
Subchapter B;
(3) pay the costs of issuing the bonds;
(4) provide a bond reserve; and
(5) pay capitalized interest on the bonds for the
period determined necessary by the commission, not to exceed two
years.
(c) Any excess money remaining after the purposes for which
the bonds were issued is satisfied may be used to purchase or redeem
outstanding bonds.
(d) If there are no outstanding bonds or bond interest to be
paid, the remaining proceeds shall be transferred to the
unemployment compensation fund.
Sec. 203.256. REPAYMENT OF COMMISSION'S FINANCIAL
OBLIGATIONS. (a) The commission shall assess an unemployment
obligation assessment annually on each employer entitled to an
experience rating under Chapter 204 if any bonds issued under this
subchapter are outstanding.
(b) With regard to outstanding bonds issued by the authority
under this subchapter, the authority shall notify the commission of
the amount of the bond obligations and the estimated amount of bond
administrative expenses each year in sufficient time, as determined
by the commission, to permit the commission to assess the annual
rate of the unemployment obligation assessment, subject to
verification by a financial advisor of the commission or as
otherwise specified in the proceedings authorizing the bonds.
(c) The commission shall deposit all revenue collected from
the unemployment obligation assessment into the obligation trust
fund. Money deposited in the fund may be invested as permitted by
general law. Money in the obligation trust fund required to be used
to pay bond obligations and bond administrative expenses shall be
transferred to the authority or used by the commission in the manner
and at the time specified in the resolution adopted in connection
with the bond issue to ensure timely payment of obligations and
expenses, or as otherwise provided by the bond documents.
(d) For bonds issued by the authority for the commission,
the commission shall provide for the payment of the bond
obligations and the bond administrative expenses by irrevocably
pledging revenues received from the unemployment obligation
assessment and amounts on deposit in the obligation trust fund,
together with any bond reserve fund, as provided in the proceedings
authorizing the bonds and related credit agreements.
Sec. 203.257. BOND PAYMENTS. (a) Revenues received from
the unemployment obligation assessment may be applied only as
provided by this subchapter.
(b) The commission may pay bond obligations with other
legally available funds.
(c) Bond obligations are payable only from sources provided
for payment in this subchapter.
Sec. 203.258. EXCESS REVENUE COLLECTIONS AND INVESTMENT
EARNINGS. Revenue collected from the unemployment obligation
assessment in any year that exceeds the amount of the bond
obligations and bond administrative expenses payable in that year
and interest earned on the obligation trust fund may, in the
discretion of the commission, be:
(1) used to pay bond obligations payable in the
subsequent year, offsetting the amount of the assessment that would
otherwise have to be levied for the year under this subchapter;
(2) used to redeem or purchase outstanding bonds;
(3) deposited in the unemployment compensation fund;
or
(4) used to pay principal and interest on advances
from the federal trust fund.
Sec. 203.259. STATE DEBT NOT CREATED. (a) A bond issued
under this subchapter, and any related credit agreement, is not a
debt of the state or any state agency or political subdivision of
the state and is not a pledge of the faith and credit of any of them.
A bond or credit agreement is payable solely from revenue as
provided by this subchapter.
(b) A bond, and any related credit agreement, issued under
this chapter must contain on its face a statement to the effect
that:
(1) neither the state nor a state agency, political
corporation, or political subdivision of the state is obligated to
pay the principal of or interest on the bond except as provided by
this subchapter; and
(2) neither the faith and credit nor the taxing power
of the state or any state agency, political corporation, or
political subdivision of the state is pledged to the payment of the
principal of or interest on the bond.
Sec. 203.260. STATE NOT TO IMPAIR BOND OBLIGATIONS. If
bonds under this subchapter are outstanding, the state may not:
(1) take action to limit or restrict the rights of the
commission to fulfill its responsibility to pay bond obligations;
or
(2) in any way impair the rights and remedies of the
bond owners until the bonds are fully discharged.
Sec. 203.261. EXEMPTION FROM TAXATION. A bond issued under
this subchapter, any transaction relating to the bond, and profits
made from the sale of the bond are exempt from taxation by this
state or by a municipality or other political subdivision of this
state.
Sec. 203.262. NO PERSONAL LIABILITY. The members of the
commission, commission employees, the board of directors of the
authority, and the employees of the authority are not personally
liable as a result of exercising the rights and responsibilities
granted under this subchapter.
SECTION 6.06. The heading to Section 204.063, Labor Code,
is amended to read as follows:
Sec. 204.063. DEFICIT ASSESSMENT [TAX].
SECTION 6.07. Section 204.064(b), Labor Code, is amended to
read as follows:
(b) The numerator is computed by subtracting the balance of
the compensation fund, considering any federal advance [or other
liability of the fund], from the floor of the compensation fund.
SECTION 6.08. The advance interest trust fund established
under Section 203.102, Labor Code, as that section existed before
the effective date of this article, is abolished on the effective
date of this Act. All money in that fund on that date is transferred
to the obligation trust fund established by Section 203.102, Labor
Code, as amended by this article.
ARTICLE 7. PARTIAL TRANSFERS OF UNEMPLOYMENT
COMPENSATION EXPERIENCE RATES
SECTION 7.01. Section 204.084, Labor Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) Except as provided by Subsection (d), the [The]
commission shall approve an application if:
(1) immediately after the acquisition the successor
employing unit continues operation of substantially the same part
of the organization, trade, or business acquired;
(2) the predecessor employer waives in writing all
rights to an experience rating computed on the compensation
experience attributable to the part of the organization, trade, or
business acquired by the successor employing unit, unless the
acquisition results from the death of the predecessor employer;
(3) a definitely identifiable and segregable part of
the predecessor employer's compensation experience is attributable
to the part of the organization, trade, or business acquired; [and]
(4) for a successor employing unit that is not an
employer at the time of the acquisition, the successor employing
unit elects to become an employer on the date of the acquisition or
otherwise becomes an employer during the year in which the
acquisition occurs;
(5) the application was filed with the commission not
later than the first anniversary of the effective date of the
acquisition; and
(6) the applicants have shown that:
(A) the acquired part of the organization, trade,
or business is capable of operating independently and separately
from the predecessor employer; and
(B) the wages attributable to the acquired part
of the organization, trade, or business are solely attributable to
services provided on behalf of the acquired part of the
organization, trade, or business.
(d) The commission may deny a transfer of compensation
experience under this section if the commission determines based on
credible evidence that the acquisition was done primarily to
qualify for a reduced unemployment insurance tax rate by:
(1) circumventing the experience rating system; or
(2) manipulating the experience rating system by
minimizing the impact of chargebacks to the predecessor employer's
tax account.
SECTION 7.02. The changes in law made by this article to
Section 204.084, Labor Code, apply only to an acquisition of an
organization, trade, or business that occurs on or after the
effective date of this Act. An acquisition of an organization,
trade, or business that occurs before the effective date of this Act
is governed by the law in effect on the date the acquisition
occurred, and that law is continued in effect for that purpose.
ARTICLE 8. CAREER SCHOOLS AND COLLEGES
PART 1. SUBSTANTIVE CHANGES REGARDING CAREER SCHOOLS AND COLLEGES
SECTION 8.01. Subchapter A, Chapter 132, Education Code, is
amended by adding Section 132.0015 to read as follows:
Sec. 132.0015. REFERENCE TO PROPRIETARY SCHOOL. A
reference in this code or another law to a proprietary school means
a career school or college.
SECTION 8.02. Section 132.061, Education Code, is amended
to read as follows:
Sec. 132.061. REFUND POLICY. (a) Except as provided by
Subsection (g), as a condition for granting certification each
career [proprietary] school or college must maintain a cancellation
and settlement policy that must provide a full refund of all monies
paid by a student if:
(1) the student cancels the enrollment agreement or
contract within 72 hours (until midnight of the third day excluding
Saturdays, Sundays, and legal holidays) after the enrollment
contract is signed by the prospective student; or
(2) the enrollment of the student was procured as the
result of any misrepresentation in advertising, promotional
materials of the school or college, or representations by the owner
or representatives of the school or college.
(b) Except as provided by Subsection (g), as a condition for
granting certification each career [proprietary] school or college
must maintain a policy for the refund of the unused portion of
tuition, fees, and other charges in the event the student, after
expiration of the 72-hour cancellation privilege, fails to enter
the course, withdraws, or is discontinued therefrom at any time
prior to completion, and such policy must provide:
(1) refunds for resident courses will be based on the
period of enrollment computed on the basis of course time expressed
in clock hours;
(2) the effective date of the termination for refund
purposes in residence schools or colleges will be the earliest of
the following:
(A) the last date of attendance, if the student
is terminated by the school or college;
(B) the date of receipt of written notice from
the student; or
(C) 10 school days following the last date of
attendance;
(3) if tuition and fees are collected in advance of
entrance, and if, after expiration of the 72-hour cancellation
privilege, the student does not enter the residence school or
college, not more than $100 shall be retained by the school or
college;
(4) for the student who enters a residence course of
not more than 12 months in length, terminates, or withdraws, the
school or college may retain $100 of tuition and fees and the
minimum refund of the remaining tuition and fees will be:
(A) during the first week or one-tenth of the
course, whichever is less, 90 percent of the remaining tuition and
fees;
(B) after the first week or one-tenth of the
course, whichever is less, but within the first three weeks or
one-fifth of the course, whichever is less, 80 percent of the
remaining tuition and fees;
(C) after the first three weeks or one-fifth of
the course, whichever is less, but within the first quarter of the
course, 75 percent of the remaining tuition and fees;
(D) during the second quarter of the course, 50
percent of the remaining tuition and fees;
(E) during the third quarter of the course, 10
percent of the remaining tuition and fees; or
(F) during the last quarter of the course, the
student may be considered obligated for the full tuition and fees;
(5) for residence courses more than 12 months in
length, the refund shall be applied to each 12-month period paid, or
part thereof separately, and the student is entitled to a refund as
provided by Subdivision (4);
(6) refunds of items of extra expense to the student,
such as instructional supplies, books, student activities,
laboratory fees, service charges, rentals, deposits, and all other
such ancillary miscellaneous charges, where these items are
separately stated and shown in the data furnished the student
before enrollment, will be made in a reasonable manner acceptable
to the commission;
(7) refunds based on enrollment in residence schools
or colleges will be totally consummated within 60 days after the
effective date of termination;
(8) refunds for correspondence courses will be
computed on the basis of the number of lessons in the course;
(9) the effective date of the termination for refund
purposes in correspondence courses will be the earliest of the
following:
(A) the date of notification to the student if
the student is terminated;
(B) the date of receipt of written notice from
the student; or
(C) the end of the third calendar month following
the month in which the student's last lesson assignment was
received unless notification has been received from the student
that the student wishes to remain enrolled;
(10) if tuition and fees are collected before any
lessons have been completed, and if, after expiration of the
72-hour cancellation privilege, the student fails to begin the
course, not more than $50 shall be retained by the school or
college;
(11) in cases of termination or withdrawal after the
student has begun the correspondence course, the school or college
may retain $50 of tuition and fees, and the minimum refund policy
must provide that the student will be refunded the pro rata portion
of the remaining tuition, fees, and other charges that the number of
lessons completed and serviced by the school or college bears to the
total number of lessons in the course; and
(12) refunds based on enrollment in correspondence
schools or colleges will be totally consummated within 60 days
after the effective date of termination.
(c) In lieu of the refund policy herein set forth, for
programs of instruction not regularly offered to the public, the
commission may, for good cause shown, amend, modify, or substitute
the terms of a career school's or college's [proprietary school's]
policy due to the specialized nature and objective of the school's
or college's [school's] course of instruction.
(d) If a course of instruction is discontinued by the career
[proprietary] school or college and this prevents the student from
completing the course, all tuition and fees paid are then due and
refundable.
(e) If a refund is not made within the period required by
this section, the career [proprietary] school or college shall pay
a penalty. If the refund is made to a lending institution, the
penalty shall also be paid to that institution and applied against
the student's loan. The commission annually shall establish the
level of the penalty at a level sufficient to provide a deterrent to
the retention of student funds. The commission may exempt a school
or college from the payment of the penalty if the school or college
makes a good faith effort to refund the tuition, fees, and other
charges but is unable to locate the student. The school or college
shall provide to the commission on request documentation of the
effort to locate the student.
(f) A career [proprietary] school or college shall record a
grade of "incomplete" for a student who withdraws but is not
entitled to a refund under Subsection (b)(4)(F) if the student
requests the grade at the time the student withdraws and the student
withdraws for an appropriate reason unrelated to the student's
academic status. A student who receives a grade of incomplete may
re-enroll in the program during the 12-month period following the
date the student withdraws and complete those incomplete subjects
without payment of additional tuition.
(g) A program that is 40 hours or less of class time, or a
seminar or workshop, is exempt from the 72-hour rule provided by
Subsection (a). The career [proprietary] school or college shall
maintain a policy for the refund of the unused portion of tuition,
fees, and other charges in the event the student fails to enter the
course, withdraws from the course, or is discontinued from the
class at any time before completion of the course as provided by
this section. The policy must provide that:
(1) refunds are based on the period of enrollment
computed on the basis of course time expressed in clock hours;
(2) the effective date of the termination for refund
purposes is the earlier of:
(A) the last date of attendance; or
(B) the date the school or college receives
written notice from the student that the student is withdrawing
from the class; and
(3) the student will be refunded the pro rata portion
of tuition, fees, and other charges that the number of class hours
remaining in the course after the effective date of the termination
bears to the total number of class hours in the course.
(h) A closing career school or college shall make a full
refund to each student of the school or college who is owed a refund
under this section.
(i) Each owner of a closing career school or college to
which a certificate of approval has not been issued under this
chapter is personally liable for the amount of any refund owed to a
student under Subsection (h).
SECTION 8.03. Chapter 132, Education Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. CEASE AND DESIST ORDERS
Sec. 132.301. HEARING; NOTICE. (a) The commission may set
a hearing on whether to issue a cease and desist order against a
person under Section 132.303 if:
(1) the commission has reason to believe that the
person is operating a career school or college without a
certificate issued by the commission in violation of Section
132.151; and
(2) the person has not responded to more than one
written notice from the commission regarding the person's
noncompliance with Section 132.151.
(b) The commission shall serve on the person a statement of
charges and a notice of hearing, including a copy of the applicable
rules of the commission.
Sec. 132.302. HEARING. Except as agreed by the parties with
prior written approval of the commission, a hearing under this
subchapter must be held not earlier than the fifth day or later than
the 30th day after the date of service of the statement and notice
required under Section 132.301.
Sec. 132.303. CEASE AND DESIST ORDER. After a hearing held
under this subchapter, the commission may issue against the person
charged with operating a career school or college without a
certificate issued by the commission an order that requires that
the person immediately cease and desist from violating this
chapter.
Sec. 132.304. ENFORCEMENT; REFERRAL TO THE ATTORNEY
GENERAL. The commission may refer the matter to the consumer
protection division of the attorney general's office for
enforcement if the commission has reason to believe that a person
has violated or failed to respond to a cease and desist order issued
under this subchapter.
Sec. 132.305. EFFECT OF PRIOR PROCEEDINGS. The commission
may proceed under this chapter or any other applicable law without
regard to prior proceedings.
Sec. 132.306. RULES. The commission shall adopt rules as
necessary to implement this subchapter.
SECTION 8.04. Section 132.241, Education Code, is amended
by amending Subsections (a), (b), (d), and (e) and adding
Subsections (f) and (g) to read as follows:
(a) Except as provided by Subsection (d), at the time that
each career [proprietary] school or college pays its annual renewal
fee, in the years provided by Subsection (b), the commission shall
also collect a fee from the school or college for deposit to the
credit of the career [proprietary] school or college tuition
protection fund.
(b) If on January 1 of any year the amount in the fund is
less than $400,000 [$200,000], the commission shall collect a fee
during that year by applying a percentage to each career school's or
college's [proprietary school's] annual renewal fee at a rate that
will bring the balance of the fund to $500,000 [$250,000].
(d) A career [proprietary] school or college is not required
to pay the fee for the tuition protection fund under Subsection (a)
if, at the time the school or college pays the annual renewal fee,
the bond provided by the school or college under Section 132.060 is
greater than the unearned tuition of the school or college.
(e) If at the end of a fiscal year the commission determines
that it has collected fees under this chapter in excess of the
amount necessary to defray the cost and expense of administering
this chapter, the commission may transfer any portion of the excess
amount to the tuition protection fund. The balance of the fund may
not exceed an amount greater than $500,000 [$250,000].
(f) From money in the tuition protection fund, the
commission shall attempt to provide a full refund to each student of
a closed career school or college of the amount of the refund owed
to the student under Section 132.061. The commission may provide a
partial refund to a student only if the commission determines that
the amount of money in the tuition protection fund is not sufficient
to provide a full refund to the student. The commission shall
consider the following factors in determining the amount of a
partial refund to be paid to a student:
(1) the amount of money in the fund;
(2) the cost and number of claims against the fund
resulting from closure of the school or college;
(3) the average cost of a claim paid from the fund in
the past; and
(4) the availability of other licensed career schools
or colleges at which the student may complete the student's
training.
(g) Notwithstanding Subsections (b) and (e), in the state
fiscal year ending August 31, 2004:
(1) the commission shall 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
(2) the balance of the tuition protection fund may not
exceed $375,000. This subsection expires September 1, 2005.
SECTION 8.05. Section 132.242, Education Code, is amended
to read as follows:
Sec. 132.242. CLOSED SCHOOL OR COLLEGE. (a) If a career
[proprietary] school or college closes, the commission shall
attempt to arrange for students of the closed school or college to
attend another career [proprietary] school or college.
(b) The expense incurred by a career [proprietary] school or
college in providing a teachout that is directly related to
educating a student placed in the school or college under this
section, including the applicable tuition for the period for which
the student has paid tuition, shall be paid from the career
[proprietary] school or college tuition protection fund.
(c) If the student cannot be placed in another career
[proprietary] school or college, the student's tuition and fees
shall be refunded under Section 132.061(d).
(d) If a student does not accept a place that is available
and reasonable in another career [proprietary] school or college,
the student's tuition and fees shall be refunded under the refund
policy maintained by the closing career [proprietary] school or
college under Section 132.061(b).
(e) If the amount of the closed career school's or college's
[proprietary school's] bond under Section 132.060 is less than the
amount required for student refunds under Subsections (c) and (d),
the refunds shall be paid from the career [proprietary] school or
college tuition protection fund in an amount not to exceed $150,000
[$50,000].
(f) If another career [proprietary] school or college
assumes responsibility for the closed career school's or college's
[proprietary school's] students with no significant changes in the
quality of training, the student is not entitled to a refund under
Subsection (c) or (d).
(g) Attorney's fees, court costs, or damages may not be paid
from the career [proprietary] school or college tuition protection
fund.
PART 2. CONFORMING AMENDMENTS REGARDING
CAREER SCHOOLS AND COLLEGES
SECTION 8.06. Section 52.32(b), Education Code, is amended
to read as follows:
(b) If a loan applicant is enrolled at a career
[proprietary] school or college in a degree program that is
approved by the board, the applicant is not required to provide
evidence that he is unable to obtain a guaranteed student loan from
a commercial lender under Subsection (a)(2) of this section.
SECTION 8.07. Section 53.02(5), Education Code, is amended
to read as follows:
(5) "Institution of higher education" means (i) any
institution of higher education as defined by Subdivision (8) of
Section 61.003 of this code, or (ii) a degree-granting college or
university corporation accredited by the Texas Education Agency or
by a recognized accrediting agency, as defined by Subdivision (13)
of Section 61.003 of this code, or (iii) a postsecondary career
[proprietary] school or college accredited by the Association of
Independent Colleges and Schools, the National Association of Trade
and Technical Schools, or the National Accrediting Commission of
Cosmetology Arts and Sciences.
SECTION 8.08. Section 54.6001, Education Code, is amended
to read as follows:
Sec. 54.6001. PUBLIC PURPOSE. An educated population being
necessary to the social development and economic health of this
state, the legislature finds and declares it to be an urgent public
necessity to assist young Texans in obtaining a higher education.
Because the state's population is rapidly growing and is diverse,
the state is required to use all of the higher education facilities
and resources within the state, both public and private, to provide
a wide variety of educational environments and instructional
options and to preserve the partnership between the state and
private or independent institutions of higher education and between
the state and career [proprietary] schools and colleges, as defined
by Section 132.001, that offer a two-year associate degree as
approved by the Texas Higher Education Coordinating Board.
Therefore, the prepaid higher education tuition program is
established to help Texas students attend the institution that best
meets their individual needs.
SECTION 8.09. Section 54.601(9), Education Code, is amended
to read as follows:
(9) "Career school or college" ["Proprietary school"]
means a career [proprietary] school or college, as defined by
Section 132.001, that offers a two-year associate degree as
approved by the Texas Higher Education Coordinating Board.
SECTION 8.10. Section 54.605(a), Education Code, is amended
to read as follows:
(a) A prepaid tuition contract remains in effect after the
program is terminated if, when the program is terminated, the
beneficiary:
(1) has been accepted by or is enrolled in an
institution of higher education, a private or independent
institution of higher education, or a career [proprietary] school
or college; or
(2) is projected to graduate from high school not
later than the third anniversary of the date the program is
terminated.
SECTION 8.11. Section 54.618(b), Education Code, is amended
to read as follows:
(b) The board may:
(1) adopt an official seal;
(2) adopt rules to implement this subchapter;
(3) sue and be sued;
(4) enter into contracts and other necessary
instruments;
(5) enter into agreements or other transactions with
the United States, state agencies, including institutions of higher
education, private or independent institutions of higher
education, career [proprietary] schools and colleges, and local
governments;
(6) appear in its own behalf before governmental
agencies;
(7) contract for necessary goods and services and
engage the services of private consultants, actuaries, trustees,
records administrators, managers, legal counsel, and auditors for
administrative or technical assistance;
(8) solicit and accept gifts, grants, loans, and other
aid from any source or participate in any other way in any
government program to carry out this subchapter;
(9) impose administrative fees;
(10) contract with a person to market the program;
(11) purchase liability insurance covering the board
and employees and agents of the board; and
(12) establish other policies, procedures, and
eligibility criteria to implement this subchapter.
SECTION 8.12. Section 54.619(h), Education Code, is amended
to read as follows:
(h) Notwithstanding other provisions of this subchapter,
any contract benefits purchased under this subchapter may be
applied to the payment of tuition and required fees at a career
[proprietary] school or college as if the [proprietary] school or
college were an institution of higher education or private or
independent institution of higher education. On the purchaser's
request, the board shall apply, in accordance with Section 54.628,
any existing amount of prepaid tuition contract benefits to the
payment of tuition and required fees at a career [proprietary]
school or college. The board is not responsible for the payment of
tuition and required fees at the career [proprietary] school or
college in excess of that amount. The board may adopt rules as
necessary to implement this subsection.
SECTION 8.13. The heading of Chapter 132, Education Code,
is amended to read as follows:
CHAPTER 132. CAREER [PROPRIETARY] SCHOOLS AND COLLEGES
SECTION 8.14. Sections 132.001(1)-(8), (10), and (12),
Education Code, are amended to read as follows:
(1) "Career school or college" ["Proprietary school"]
means any business enterprise operated for a profit, or on a
nonprofit basis, that maintains a place of business within this
state, or solicits business within this state, and that is not
specifically exempted by this chapter and:
(A) that offers or maintains a course or courses
of instruction or study; or
(B) at which place of business such a course or
courses of instruction or study is available through classroom
instruction or by correspondence, or both, to a person for the
purpose of training or preparing the person for a field of endeavor
in a business, trade, technical, or industrial occupation, or for
avocational or personal improvement.
(2) "Owner" of a career school or college [proprietary
school] means:
(A) in the case of a career school or college
owned by an individual, that individual;
(B) in the case of a career school or college
owned by a partnership, all full, silent, and limited partners;
(C) in the case of a career school or college
owned by a corporation, the corporation, its directors, officers,
and each shareholder owning shares of issued and outstanding stock
aggregating at least 10 percent of the total of the issued and
outstanding shares;
(D) in the case of a career school or college in
which the ownership interest is held in trust, the beneficiary of
that trust; or
(E) in the case of a career school or college
owned by another legal entity, a person who owns at least 10 percent
ownership interest in the entity.
(3) "School employee" means any person, other than an
owner, who directly or indirectly receives compensation from a
career [proprietary] school or college for services rendered.
(4) "Representative" means a person employed by a
career [proprietary] school or college, whether the school or
college is located within or without this state, to act as an agent,
solicitor, broker, or independent contractor to directly procure
students for the school or college by solicitation within or
without this state at any place.
(5) "Agency administrator" means the agency
administrator of the Texas Workforce Commission or a person,
knowledgeable in the administration of regulating career
[proprietary] schools and colleges, designated by the agency
administrator to administer this chapter.
(6) "Notice to the career school or college"
[proprietary school"] means written correspondence sent to the
address of record for legal service contained in the application
for a certificate of approval. "Date of Notice" means the date the
notice is mailed by the commission.
(7) "Support" or "supported" means the primary source
and means by which a career [proprietary] school or college derives
revenue to perpetuate its operation.
(8) "Person" means any individual, firm, partnership,
association, corporation, or other private entity or combination
[thereof].
(10) "Small career school or college" [proprietary
school"] means a career [proprietary] school or college that does
not receive any payment from federal funds under 20 U.S.C. Section
1070 et seq. and its subsequent amendments or a prepaid federal or
state source as compensation in whole or in part for any student
tuition and fees or other charges and either:
(A) has an annual gross income from student
tuition and fees that is less than or equal to $100,000 for programs
regulated by the agency;
(B) exclusively offers programs to assist
students to prepare for an undergraduate or graduate course of
study at a college or university; or
(C) exclusively offers programs to assist
students, who have obtained, or who are in the process of obtaining,
degrees after completing an undergraduate or graduate course of
study at a college or university, to prepare for an examination.
(12) "Division" means the division of education of
[in] the commission.
SECTION 8.15. Section 132.002(a), Education Code, is
amended to read as follows:
(a) The following schools or educational institutions are
specifically exempt from this chapter and are not within the
definition of "career school or college" ["proprietary school"]:
(1) a school or educational institution supported by
taxation from either a local or state source;
(2) nonprofit schools owned, controlled, operated,
and conducted by bona fide religious, denominational,
eleemosynary, or similar public institutions exempt from property
taxation under the laws of this state, but such schools may choose
to apply for a certificate of approval hereunder, and upon approval
and issuance, are subject to this chapter as determined by the
commission;
(3) a school or training program that offers
instruction of purely avocational or recreational subjects as
determined by the commission;
(4) a course or courses of instruction or study
sponsored by an employer for the training and preparation of its own
employees, and for which no tuition fee is charged to the student;
(5) a course or courses of study or instruction
sponsored by a recognized trade, business, or professional
organization for the instruction of the members of the organization
with a closed membership;
(6) private colleges or universities that award a
recognized baccalaureate, or higher degree, and that maintain and
operate educational programs for which a majority of the credits
given are transferable to a college, junior college, or university
supported entirely or partly by taxation from either a local or
state source;
(7) a school or course that is otherwise regulated and
approved under and pursuant to any other law or rulemaking process
of this state or approved for continuing education credit by an
organization that accredits courses for the maintenance of a
license, except as provided by Subsection (c);
(8) aviation schools or instructors approved by and
under the supervision of the Federal Aviation Administration;
(9) a school that offers intensive review of a
student's acquired education, training, or experience to prepare
the student for an examination, other than a high school
equivalency examination, that the student by law may not take
unless the student has completed or substantially completed a
particular degree program, or that the student is required to take
as a precondition for enrollment in or admission to a particular
degree program;
(10) a private school offering primary or secondary
education, which may include a kindergarten or prekindergarten
program, and that satisfies the compulsory attendance requirements
of Section 25.085 pursuant to Section 25.086(a)(1);
(11) a course or courses of instruction by bona fide
electrical trade associations for the purpose of preparing students
for electrical tests required for licensing and for the purpose of
providing continuing education to students for the renewal of
electrical licenses;
(12) a nonprofit arts organization that has as its
primary purpose the provision of instruction in the dramatic arts
and the communications media to persons younger than 19 years of
age;
(13) a course or training program conducted by a
nonprofit association of air conditioning and refrigeration
contractors approved by the Air Conditioning and Refrigeration
Contractors Advisory Board to provide instruction for technical,
business, or license examination preparation programs relating to
air conditioning and refrigeration contracting, as that term is
defined by Chapter 1302, Occupations Code [the Air Conditioning and
Refrigeration Contractor License Law (Article 8861, Vernon's Texas
Civil Statutes)];
(14) a course of instruction by a plumbing trade
association to prepare students for a plumbing test or program
required for licensing, certification, or endorsement or to provide
continuing education approved by the Texas State Board of Plumbing
Examiners; and
(15) a course of instruction in the use of
technological hardware or software if the course is offered to a
purchaser of the hardware or software or to the purchaser's
employee by a person who manufactures and sells, or develops and
sells, the hardware or software, and if the seller is not primarily
in the business of providing courses of instruction in the use of
the hardware or software, as determined by the commission.
SECTION 8.16. Sections 132.021(a) and (b), Education Code,
are amended to read as follows:
(a) The commission shall exercise jurisdiction and control
of the system of career [proprietary] schools and colleges, and the
commission shall carry out supervision of the provisions of this
chapter, and enforce minimum standards for approval of career
[proprietary] schools and colleges under the operating regulations
and policies hereinafter set forth and as may be adopted pursuant to
this chapter.
(b) The commission shall prepare a comparison of the cost to
a student of courses of instruction or training programs at career
[proprietary] schools and colleges to the cost to a student of
similar courses or programs at schools that are exempt from this
chapter under Section 132.002.
SECTION 8.17. Section 132.022, Education Code, is amended
to read as follows:
Sec. 132.022. DUTIES OF COMMISSION. The commission shall
carry out the policies of this chapter and enforce the rules adopted
under this chapter. The commission shall also certify the names of
those career [proprietary] schools and colleges meeting the
requirements for a certificate of approval.
SECTION 8.18. Section 132.023, Education Code, is amended
to read as follows:
Sec. 132.023. MEMORANDUM OF UNDERSTANDING FOR REGULATION OF
CAREER [PROPRIETARY] SCHOOLS AND COLLEGES. (a) The commission
shall develop, in consultation with the Texas Guaranteed Student
Loan Corporation and each state agency that regulates career
[proprietary] schools and colleges in this state, a comprehensive
strategy to reduce default rates at the regulated career
[proprietary] schools and colleges and to improve the overall
quality of the programs operated by these schools and colleges.
(b) The commission shall execute a memorandum of
understanding outlining the strategy with the corporation and each
state agency regulating career [proprietary] schools and colleges
and shall adopt rules to carry out the commission's [its] duties
under this section. The Texas Guaranteed Student Loan Corporation
shall adopt the memorandum of understanding as procedures of the
corporation, and each agency by rule shall adopt the memorandum of
understanding.
(c) The memorandum of understanding shall:
(1) require the development and monitoring of
indicators that identify career [proprietary] schools and colleges
that have excessive loan default rates, poor program performance,
or both;
(2) require the sharing of specific information
relating to the indicators between the commission and the Texas
Guaranteed Student Loan Corporation or other agency; and
(3) require the application of specific sanctions by
the commission or by the Texas Guaranteed Student Loan Corporation
or other agency, as appropriate, to lower the default rates,
improve program performance, or both.
(d) If the commission enters a memorandum of understanding
with the Texas Guaranteed Student Loan Corporation related to the
regulation of career [proprietary] schools and colleges, the
commission may require each career [proprietary] school or college
governed by this chapter to provide information to the commission
that is necessary for the purposes of the memorandum of
understanding.
SECTION 8.19. Section 132.051, Education Code, is amended
to read as follows:
Sec. 132.051. CERTIFICATE OF APPROVAL. (a) A career
[proprietary] school or college may not maintain, advertise,
solicit for, or conduct any course of instruction in this state
before the later of:
(1) the 30th day after the date the school or college
applies for a certificate of approval under this chapter; or
(2) the date the school or college receives a
certificate of approval from the commission.
(b) Any contract entered into with any person for a course
of instruction by or on behalf of any person operating any career
[proprietary] school or college to which a certificate of approval
has not been issued pursuant to this chapter is unenforceable in any
action brought thereon.
SECTION 8.20. Section 132.052, Education Code, is amended
to read as follows:
Sec. 132.052. APPLICATION FOR CERTIFICATE OF APPROVAL.
Every career [proprietary] school or college desiring to operate in
this state or do business in this state shall make written
application to the commission for a certificate of approval. Such
application shall be verified, be in such form as may be prescribed
by the commission, and shall furnish the commission such
information as the commission may require.
SECTION 8.21. Section 132.053, Education Code, is amended
to read as follows:
Sec. 132.053. STATUTORY WAIVER AUTHORITY. (a) The
commission may establish rules that waive, alter, suspend, or
replace any of the following provisions governing small career
[proprietary] schools and colleges:
(1) the fee schedule authorized under Section 132.201,
provided that fees under a fee schedule established by rule may not
be less than the reasonable administrative cost for regulation or
more than the amount that a small career [proprietary] school or
college would otherwise pay if it were not classified as a small
career [proprietary] school or college;
(2) participation in the career [proprietary] school
or college tuition protection fund required by Section 132.241;
(3) the refund policy provisions of Section 132.061;
(4) the bonding requirements of Section 132.060;
(5) the examination of a school or college for
compliance under Section 132.056(f);
(6) the reporting requirements of Section 132.055(o);
and
(7) the term for which a certificate of approval is
issued under Section 132.056(b), provided that a rule adopted under
this section may not provide for a term that exceeds three years or
is less than one year.
(b) A rule proposed under this section may be adopted only
if it will reduce the regulatory burden for small career
[proprietary] schools and colleges and will adequately safeguard
the interests of the students of small career [proprietary] schools
and colleges to receive either the education for which they have
contracted or an appropriate refund.
SECTION 8.22. Section 132.054, Education Code, is amended
to read as follows:
Sec. 132.054. SMALL SCHOOL OR COLLEGE EXEMPTION. The
commission may exempt small career [proprietary] schools and
colleges from any requirement of this chapter to reduce the cost to
small schools and colleges of receiving a certificate of approval.
SECTION 8.23. Section 132.055, Education Code, is amended
to read as follows:
Sec. 132.055. CRITERIA. The commission may approve the
application of such career [proprietary] school or college when the
school or college is found, upon investigation at the premises of
the school or college, to have met the following criteria:
(a) The courses, curriculum, and instruction are of such
quality, content, and length as may reasonably and adequately
achieve the stated objective for which the courses, curriculum, or
instruction are offered. Before a school or college conducts a
course of instruction in court reporting, the school or college
must produce evidence that the school or college has obtained
approval for the curriculum from the Court Reporters Certification
Board.
(b) There is in the school or college adequate space,
equipment, instructional material, and instructor personnel to
provide training of good quality.
(c) Educational and experience qualifications of directors,
administrators, and instructors are adequate.
(d) The school or college maintains a written record of the
previous education and training of the applicant student and
clearly indicates that appropriate credit has been given by the
school or college for previous education and training, with the new
training period shortened where warranted through use of
appropriate skills or achievement tests and the student so
notified.
(e) A copy of the course outline; schedule of tuition, fees,
refund policy, and other charges; regulations pertaining to
absence, grading policy, and rules of operation and conduct;
regulations pertaining to incomplete grades; the name, mailing
address, and telephone number of the commission for the purpose of
directing complaints to the agency; the current rates of job
placement and employment of students issued a certificate of
completion; and notification of the availability of the cost
comparison information prepared under Section 132.021(b) through
the commission will be furnished the student prior to enrollment.
(f) Except as provided by Section 132.062, on completion of
training, the student is given a certificate by the school or
college indicating the course and that training was satisfactorily
completed.
(g) Adequate records as prescribed by the commission are
kept to show attendance and progress or grades, and satisfactory
standards relating to attendance, progress, and conduct are
enforced.
(h) The school or college complies with all local, city,
county, municipal, state, and federal regulations, such as fire,
building, and sanitation codes. The commission may require such
evidence of compliance as is deemed necessary.
(i) The school or college is financially sound and capable
of fulfilling its commitments for training.
(j) The school's or college's [school's] administrators,
directors, owners, and instructors are of good reputation and
character.
(k) The school or college has, maintains, and publishes in
its catalogue and enrollment contract the proper policy for the
refund of the unused portion of tuition, fees, and other charges in
the event the student enrolled by the school or college fails to
take the course or withdraws or is discontinued therefrom at any
time prior to completion.
(l) The school or college does not utilize erroneous or
misleading advertising, either by actual statement, omission, or
intimation as determined by the commission.
(m) Such additional criteria as may be required by the
commission.
(n) The school or college does not use a name like or similar
to an existing tax supported school or college in the same area.
(o) The school or college furnishes to the commission the
current rates of students who receive a certificate of completion
and of job placement and employment of students issued a
certificate of completion.
(p) The school or college furnishes to the commission for
approval or disapproval student admission requirements for each
course or program offered by the school or college.
(q) The school or college furnishes to the commission for
approval or disapproval the course hour lengths and curriculum
content for each course offered by the school or college.
(r) The school or college does not owe a penalty under
Section 132.152, 132.155, or 132.157.
SECTION 8.24. Section 132.056, Education Code, is amended
to read as follows:
Sec. 132.056. ISSUANCE OF CERTIFICATE OF APPROVAL; RENEWAL.
(a) The commission, upon review of an application for a certificate
of approval duly submitted in accordance with Section 132.052 and
meeting the requirements of Section 132.055, shall issue a
certificate of approval to the applicant career [proprietary]
school or college. The certificate of approval shall be in a form
prescribed by the commission and shall state in a clear and
conspicuous manner at least the following information:
(1) date of issuance, effective date, and term of
approval;
(2) correct name and address of the school or college;
(3) authority for approval and conditions of approval,
if any, referring specifically to the approved catalogue or
bulletin published by the school or college;
(4) signature of the agency administrator; and
(5) any other fair and reasonable representations that
are consistent with this chapter and deemed necessary by the
commission.
(b) The term for which a certificate of approval shall be
issued may not exceed one year.
(c) The certificate of approval shall be issued to the owner
of the applicant career [proprietary] school or college and is
nontransferable. In the event of a change in ownership of the
school or college, a new owner must, at least 30 days prior to the
change in ownership, apply for a new certificate of approval.
(d) At least 30 days prior to expiration of a certificate of
approval, the career [proprietary] school or college shall forward
to the commission an application for renewal. The commission shall
reexamine the premises of the school or college as frequently as the
commission considers necessary and renew, revoke, or deny renewal
of the school's or college's [school's] certificate of approval. If
a school or college fails to file a complete application for renewal
at least 30 days before the expiration date of the certificate of
approval, the school or college, as a condition of renewal, must
pay, in addition to the annual renewal fee, a late renewal fee in an
amount established by commission rule of at least $100.
(e) A career [proprietary] school or college not yet in
operation when its application for certificate of approval is filed
may not begin operation until receipt of certificate of approval.
(f) The commission shall visit a career [proprietary]
school or college to reexamine the school or college for compliance
with the criteria provided by Section 132.055 not later than three
months after the date the [a] school or college begins operation or
after a change in ownership of the [a] school or college.
SECTION 8.25. Section 132.058, Education Code, is amended
to read as follows:
Sec. 132.058. REVOCATION OF CERTIFICATE OF APPROVAL. (a)
The commission may revoke an issued certificate of approval or
place reasonable conditions upon the continued approval
represented by the certificate. Prior to revocation or imposition
of conditions upon a certificate of approval, the commission shall
notify the holder of the certificate, in writing, of the impending
action and set forth the grounds for the action. The commission may
reexamine a career [proprietary] school or college two or more
times during each year in which a notice relating to the school or
college has been issued or conditions have been imposed on the
school or college under this subsection.
(b) A certificate of approval may be revoked or made
conditional if the commission has reasonable cause to believe that
the career [proprietary] school or college is guilty of a violation
of this chapter or of any rules adopted under this chapter.
SECTION 8.26. Sections 132.059(a), (b), and (d), Education
Code, are amended to read as follows:
(a) All representatives employed by a career [proprietary]
school or college shall register with the commission. Application
for registration may be made at any time and shall be based on
information submitted in accordance with the provisions of Section
132.052.
(b) Registration of a representative is effective upon
receipt of notice from the commission and remains in effect for a
period not in excess of 12 calendar months. Renewal of
representative registration shall be in accordance with the renewal
application form forwarded to the career [proprietary] school or
college by the commission.
(d) Career [Proprietary] schools and colleges domiciled or
having their principal place of business outside of this state that
engage representatives to canvass, solicit, or contract with any
person within this state, are subject to the requirements for
registration of representatives.
SECTION 8.27. Section 132.060, Education Code, is amended
to read as follows:
Sec. 132.060. BOND REQUIREMENTS. (a) Before a certificate
of approval is issued under this chapter, a bond shall be provided
by the career [proprietary] school or college for the period during
which the certificate of approval is issued, and the obligation of
the bond shall be that neither this chapter nor any rule adopted
pursuant thereto shall be violated by the school or college or any
of its officers, agents, or employees. The bond shall be in the
penal sum of $5,000 or a multiple of $5,000 that is not greater than
$35,000 for a certificate of approval issued for a period that
begins in the fiscal year ending August 31, 2002, and $50,000 for a
certificate of approval issued for a period that begins on or after
September 1, 2002. The commission shall determine the amount based
on the evidence the school or college submits of its projected
maximum total unearned tuition during the period of the certificate
of approval. The bond shall be a corporate surety bond issued by a
company authorized to do business in this state, conditioned that
the parties thereto shall pay all damages or expenses that the state
or any governmental subdivision thereof or any student or potential
student may sustain resulting from a violation. The bond shall be
to the state to be used only for payment of a tuition refund due to a
student or potential student. The bond shall be filed with the
commission and shall be in such form as shall be approved by the
commission.
(b) In lieu of the corporate surety bond required in
Subsection (a), the career [proprietary] school or college may
provide any other similar certificate or evidence of indebtedness
as may be acceptable to the commission, provided that the
certificate or evidence of indebtedness meets all the requirements
applicable to the corporate surety bond.
(c) Career [Proprietary] schools and colleges domiciled or
having their principal place of business outside of this state that
engage representatives to canvass, solicit, or contract with any
person within this state are subject to the bond requirements of
Subsection (a).
(d) The commission, for good cause shown, may waive and
suspend the requirements set forth in Subsections (a) and (b) with
respect to career [proprietary] schools and colleges operating
wholly or in part under a federal grant where no tuition fee is
charged to the student.
SECTION 8.28. Section 132.062, Education Code, is amended
to read as follows:
Sec. 132.062. WITHHOLDING RECORDS. A career [proprietary]
school or college may withhold a student's transcript or
certificate of completion of training until the student has
fulfilled the student's financial obligation to the school or
college.
SECTION 8.29. Section 132.063, Education Code, is amended
to read as follows:
Sec. 132.063. APPROVED DEGREES. A career [proprietary]
school or college may offer a degree approved by the Texas Higher
Education Coordinating Board.
SECTION 8.30. Section 132.064, Education Code, is amended
to read as follows:
Sec. 132.064. NONQUALIFICATION AS SMALL CAREER
[PROPRIETARY] SCHOOL AND COLLEGE. (a) A career [proprietary]
school or college operating as a small career [proprietary] school
or college but that has an annual gross income from tuition and fees
that exceeds $100,000 (other than a test preparation school
described by Section 132.001(10)(B) or (C)) that intends to receive
a payment from federal funds under 20 U.S.C. Section 1070 et seq. or
intends to receive prepayment of tuition, fees, or other charges
from federal or state funds shall send written notice to the
commission. The notice must be sent not later than the following
date, as applicable:
(1) the 60th day after the date on which annual gross
income is determined to exceed the maximum;
(2) the day before receiving a payment of federal
funds under 20 U.S.C. Section 1070 et seq.; or
(3) the day before enrolling a student who will prepay
tuition, a fee, or another charge in whole or in part from federal
or state funds.
(b) A career [proprietary] school or college that no longer
qualifies as a small career [proprietary] school or college shall
apply for an initial certificate of approval as a career
[proprietary] school or college within 30 days after the date the
school has notified the commission that it no longer qualifies as a
small career [proprietary] school or college. The commission may
apply or prorate any fees paid by the school or college as a small
career [proprietary] school or college.
(c) A career [proprietary] school or college that no longer
qualifies as a small career [proprietary] school or college shall
submit to the commission an amount of money equal to the difference
between the fee for the small career [proprietary] school or
college certificate of approval submitted by the school or college
and the fee that the school or college would be required to submit
after its qualifications as a small career [proprietary] school or
college cease.
(d) The authority of a career [proprietary] school or
college to operate under a small career [proprietary] school or
college certificate of approval terminates on the final
determination of issuance or denial of an initial certificate of
approval. If a school or college fails to file a complete
application within the period required by Subsection (b), the
school or college, as a condition of issuance, must pay a late fee
in an amount established by commission rule of at least $100.
SECTION 8.31. Section 132.151, Education Code, is amended
to read as follows:
Sec. 132.151. PROHIBITIONS. A person may not:
(1) operate a career [proprietary] school or college
without a certificate of approval issued by the commission;
(2) solicit prospective students for or on behalf of a
career [proprietary] school or college without being registered as
a representative of the career [proprietary] school or college as
required by this chapter;
(3) accept contracts or enrollment applications from a
representative who is not bonded as required by this chapter;
(4) utilize advertising designed to mislead or deceive
prospective students;
(5) fail to notify the commission of the
discontinuance of the operation of any career [proprietary] school
or college within 72 hours of cessation of classes and make
available accurate records as required by this chapter;
(6) fail to secure and file within 30 days an increased
bond as required by this chapter;
(7) negotiate any promissory instrument received as
payment of tuition or other charge prior to completion of 75 percent
of the course, provided that prior to such time, the instrument may
be transferred by assignment to a purchaser who shall be subject to
all the defenses available against the career [proprietary] school
or college named as payee; or
(8) violate any provision of this chapter.
SECTION 8.32. Section 132.153, Education Code, is amended
to read as follows:
Sec. 132.153. COMPETITIVE BIDDING; ADVERTISING. The
commission may not adopt rules to restrict competitive bidding or
advertising by a career [proprietary] school or college except to
prohibit false, misleading, or deceptive competitive bidding or
advertising practices. Those rules may not restrict:
(1) the use of an advertising medium;
(2) the size or duration of an advertisement; or
(3) advertisement under a trade name.
SECTION 8.33. Section 132.154(a), Education Code, is
amended to read as follows:
(a) Whenever the commission has probable cause to believe
that any career [proprietary] school or college has committed any
acts that would be in violation of this chapter, the commission
shall apply for an injunction restraining the commission of such
acts.
SECTION 8.34. Section 132.156, Education Code, is amended
to read as follows:
Sec. 132.156. SANCTIONS. (a) If the commission has
reasonable cause to believe that a career [proprietary] school or
college has violated this chapter or a rule adopted under this
chapter, the commission may:
(1) order a peer review of the school or college; or
(2) suspend the admission of students to the school or
college.
(b) A peer review ordered under this section shall be
conducted by a peer review team composed of knowledgeable persons
selected by the commission. The commission shall attempt to
provide a balance on each team between members assigned to the team
who are from this state and those who are from other states. The
team shall provide the commission with an objective assessment of
the content of the career school's or college's [proprietary
school's] curriculum and its application. The costs of providing a
peer review team shall be paid by the school or college.
SECTION 8.35. Sections 132.157(a), (b), (c), and (d),
Education Code, are amended to read as follows:
(a) If a career [proprietary] school or college fails to
timely comply with the requirements of Section 132.064, in addition
to any other penalties authorized by law, the commission may assess
a penalty in an amount not greater than two times the amount that
the school or college would have paid in fees and other charges if
the school or college had complied with the requirements of Section
132.064 or may assess a penalty in the amount of the tuition or fee
charge to any students whose tuition or fees were contracted to be
funded by a prepaid federal or state source.
(b) If the commission finds that the career [proprietary]
school or college acted intentionally, the commission may, in
addition to any other remedy available under law, assess a penalty
against the owner in an amount not greater than four times the
amount of the fees and charges that the school or college should
have paid or four times the amount of the student tuition that was
contracted to be funded from a prepaid federal or state source.
(c) The failure to notify the commission within four months
after the career school's or college's [proprietary school's]
earnings exceed that of a small career [proprietary] school or
college gives rise to a rebuttable presumption of intent for
purposes of assessment of a penalty.
(d) The failure to notify the commission within 10 days
after a career [proprietary] school or college has enrolled a
student whose tuition or fees are paid in whole or in part from a
prepaid federal or state source gives rise to a rebuttable
presumption of intent for purposes of assessment of a penalty.
SECTION 8.36. Sections 132.201(a), (c), (d), (e), (f), (h),
and (i), Education Code, are amended to read as follows:
(a) Certificate and registration fees, except those charged
pursuant to Subsection (d), shall be collected by the commission.
Each fee shall be in an amount set by the commission in an amount not
to exceed 150 percent of each fee in the following schedule:
(1) the initial fee for a career [proprietary] school
or college:
(A) for a certificate of approval is $2,000; or
(B) for a small career [proprietary] school or
college certificate of approval is $1,000;
(2) the first renewal fee and each subsequent renewal
fee for a career [proprietary] school or college is the greater of:
(A) an amount that is determined by applying a
percentage, not to exceed 0.3 percent, to the gross tuition and
fees, excluding refunds as provided by Section 132.061, of the
school or college; or
(B) $500;
(3) the initial registration fee for a representative
is $60;
(4) the annual renewal fee for a representative is
$30;
(5) the fee for a change of a name of a career
[proprietary] school or college or owner is $100;
(6) the fee for a change of an address of a career
[proprietary] school or college is $180;
(7) the fee for a change in the name or address of a
representative or a change in the name or address of a career
[proprietary] school or college that causes the reissuance of a
representative permit is $10;
(8) the application fee for an additional course is
$150, except for seminar and workshop courses, for which the fee is
$25;
(9) the application fee for a director, administrative
staff member, or instructor is $15;
(10) the application fee for the authority to grant
degrees is $2,000;
(11) the application fee for an additional degree
course is $250; and
(12) the fee for an inspection required by commission
rule of classroom facilities that are separate from the main campus
is $250.
(c) For purposes of this section, the gross amount of annual
student fees and tuition for a career [proprietary] school or
college is the amount determined by the commission based on any
report submitted by the school or college to the commission or other
information obtained by the commission.
(d) In connection with the regulation of any career
[proprietary] school or college or course through a memorandum of
understanding pursuant to Section 132.002(c), the commission shall
set an application and annual renewal fee, not to exceed $2,000.
The fee shall be an amount reasonably calculated to cover the
administrative costs associated with assuming the additional
regulation.
(e) The fee for an investigation at a career [proprietary]
school or college to resolve a complaint filed against the school or
college is $600. The fee may be charged only if:
(1) the complaint could not have been resolved by
telephone or written correspondence only;
(2) a representative of the commission visits the
school or college as a part of the complaint resolution process; and
(3) the school or college is found to be at fault.
(f) The commission may allow payment of any fee authorized
under this section or under Section 132.241 that exceeds $1,000 to
be paid by installment. The commission shall provide for
appropriate interest charges and late penalties in addition to any
other remedy that is provided for by law for the late payment of a
fee installment authorized under this section. The commission may
assess a reasonable service charge or interest to be paid by a
career [proprietary] school or college that pays a fee by
installment in an amount not to exceed 10 percent annually of the
fee that is to be paid by installment.
(h) The commission may apply or prorate a fee paid by a small
career [proprietary] school or college that has complied with the
notification requirements of Section 132.064 toward an initial
certificate as a career [proprietary] school or college in the
event that a career [proprietary] school or college has ceased to
qualify as a small career [proprietary] school or college during a
certification period.
(i) The commission may charge each career [proprietary]
school or college a fee for the cost of a service that collects,
analyzes, and reports student-level data in order to assess the
outcome of students who attend career [proprietary] schools and
colleges. The total amount of the fees charged under this
subsection must not exceed the cost of the service to the
commission.
SECTION 8.37. Section 52.013(b), Government Code, is
amended to read as follows:
(b) The board may:
(1) appoint any necessary or proper subcommittee;
(2) hire necessary employees;
(3) pay all reasonable expenses from available funds;
(4) approve curriculum for court reporter career
[proprietary] schools and colleges as provided by Section 132.055,
Education Code;
(5) approve court reporter programs in technical
institutes and public community colleges for purposes of
certification under Section 61.051, Education Code; and
(6) approve continuing professional education courses
for persons certified as court reporters.
SECTION 8.38. Section 305.002(3), Labor Code, is amended to
read as follows:
(3) "Eligible institution" means a career
[proprietary] school or college in this state that:
(A) holds a certificate of approval under Chapter
132, Education Code; and
(B) is approved by the commission under Section
305.023 for its students to participate in the grant program
established under this chapter.
SECTION 8.39. Section 305.023, Labor Code, is amended to
read as follows:
Sec. 305.023. APPROVAL OF INSTITUTIONS. The commission
shall approve a career [proprietary] school or college for its
students to participate in the grant program established under this
chapter if the school or college:
(1) has been accredited for not less than five years by
an accrediting agency recognized by the United States Department of
Education and maintains that accreditation;
(2) has held a certificate of approval under Chapter
132, Education Code, for at least five years; and
(3) offers one or more qualified education programs.
SECTION 8.40. Section E, Article 2.23A, Texas Non-Profit
Corporation Act (Article 1396-2.23A, Vernon's Texas Civil
Statutes), is amended to read as follows:
E. This article does not apply to:
(1) a corporation that solicits funds only from its
members;
(2) a corporation which does not intend to solicit and
receive and does not actually raise or receive contributions from
sources other than its own membership in excess of $10,000 during a
fiscal year;
(3) a career [proprietary] school or college that has
received a certificate of approval from the Texas Workforce
Commission [State Commissioner of Education], a public institution
of higher education and foundations chartered for the benefit of
such institutions or any component part thereof, a private or
independent institution of higher education as defined by Section
61.003, Education Code, a postsecondary educational institution
with a certificate of authority to grant a degree issued by the
Texas Higher Education Coordinating Board, [Texas College and
University System,] or an elementary or secondary school;
(4) religious institutions which shall be limited to
churches, ecclesiastical or denominational organizations, or other
established physical places for worship at which religious services
are the primary activity and such activities are regularly
conducted;
(5) a trade association or professional society whose
income is principally derived from membership dues and assessments,
sales, or services;
(6) any insurer licensed and regulated by the Texas
Department [State Board] of Insurance;
(7) an organization whose charitable activities
relate to public concern in the conservation and protection of
wildlife, fisheries, and allied natural resources;
(8) an alumni association of a public or private
institution of higher education in this state, provided that such
association is recognized and acknowledged by the institution as
its official alumni association.
ARTICLE 9. REPEALER
SECTION 9.01. The following laws are repealed:
(1) Section 201.002, Labor Code;
(2) Section 203.102, Labor Code;
(3) Section 301.006, Labor Code, as added by Section
5.82(a), Chapter 76, Acts of the 74th Legislature, Regular Session,
1995;
(4) Section 301.061(c), Labor Code; and
(5) Section 302.005(k), Labor Code.
ARTICLE 10. GENERAL CONFORMING AMENDMENTS
SECTION 10.01. Section 30.103, Education Code, is amended
to read as follows:
Sec. 30.103. MEMORANDUM OF UNDERSTANDING. The Texas Youth
Commission with the assistance of the Texas Workforce [Employment]
Commission and the Council on Workforce and Economic
Competitiveness shall by rule adopt a memorandum of understanding
that establishes the respective responsibility of those entities to
provide through local workforce development boards job training and
employment assistance programs to children committed or formerly
sentenced to the Texas Youth Commission. The Texas Youth
Commission shall coordinate the development of the memorandum of
understanding and include in its annual report information
describing the number of children in the preceding year receiving
services under the memorandum.
SECTION 10.02. Section 501.095(d), Government Code, is
amended to read as follows:
(d) The Texas Workforce [Employment] Commission shall
coordinate the development of the memorandum of understanding.
SECTION 10.03. Section 531.045(b), Government Code, is
amended to read as follows:
(b) The task force is composed of:
(1) a representative of:
(A) the attorney general's office, appointed by
the attorney general;
(B) the comptroller's office, appointed by the
comptroller;
(C) the commission, appointed by the
commissioner;
(D) the Texas Department of Health, appointed by
the commissioner of public health;
(E) the Texas Department of Human Services,
appointed by the commissioner of human services;
(F) the Texas Workforce Commission, appointed by
the executive director [presiding officer] of that agency; and
(G) the Texas Rehabilitation Commission,
appointed by the commissioner of that agency; and
(2) two representatives of each of the following
groups, appointed by the comptroller:
(A) retailers who maintain electronic benefits
transfer point-of-sale equipment;
(B) banks or owners of automatic teller machines;
and
(C) consumer or client advocacy organizations.
SECTION 10.04. Section 572.003(c), Government Code, is
amended to read as follows:
(c) The term means a member of:
(1) the Public Utility Commission of Texas;
(2) the Texas Department of Economic Development
[Commerce];
(3) the Texas [Natural Resource Conservation]
Commission on Environmental Quality;
(4) the Texas Alcoholic Beverage Commission;
(5) The Finance Commission of Texas;
(6) the Texas Building and Procurement [General
Services] Commission;
(7) the Texas Board of Criminal Justice;
(8) the board of trustees of the Employees Retirement
System of Texas;
(9) the Texas Transportation Commission;
(10) the Texas Workers' Compensation Commission;
(11) the Texas Department [State Board] of Insurance;
(12) the Parks and Wildlife Commission;
(13) the Public Safety Commission;
(14) the Texas Ethics Commission;
(15) the State Securities Board;
(16) the Texas Water Development Board;
(17) the governing board of a public senior college or
university as defined by Section 61.003, Education Code, or of The
University of Texas Southwestern Medical Center at Dallas, The
University of Texas Medical Branch at Galveston, The University of
Texas Health Science Center at Houston, The University of Texas
Health Science Center at San Antonio, The University of Texas
System Cancer Center, The University of Texas Health Science Center
at Tyler, University of North Texas Health Science Center at Fort
Worth, Texas Tech University Health Sciences Center, Texas State
Technical College--Harlingen, Texas State Technical
College--Marshall, Texas State Technical College--Sweetwater, or
Texas State Technical College--Waco;
(18) the Texas Higher Education Coordinating Board;
(19) the Texas Workforce [Employment] Commission;
(20) the State Banking Board;
(21) the board of trustees of the Teacher Retirement
System of Texas;
(22) the Credit Union Commission;
(23) the School Land Board;
(24) the board of the Texas Department of Housing and
Community Affairs;
(25) the Texas Racing Commission;
(26) the State Board of Dental Examiners;
(27) [the Texas Board of Licensure for Nursing Home
Administrators;
[(28)] the Texas State Board of Medical Examiners;
(28) [(29)] the Board of Pardons and Paroles;
(29) [(30)] the Texas State Board of Pharmacy;
(30) [(31)] the Department of Information Resources
governing board;
(31) [(32)] the Motor Vehicle Board;
(32) [(33)] the Texas Real Estate Commission;
(33) [(34)] the board of directors of the State Bar of
Texas;
(34) [(35)] the bond review board;
(35) [(36)] the Texas Board of Health;
(36) [(37)] the Texas Board of Mental Health and
Mental Retardation;
(37) [(38)] the Texas Board on Aging;
(38) [(39)] the Texas Board of Human Services;
(39) [(40)] the Texas Funeral Service Commission;
(40) [(41)] the board of directors of a river
authority created under the Texas Constitution or a statute of this
state; or
(41) [(42)] the Texas Lottery Commission.
SECTION 10.05. Section 656.001, Government Code, is amended
to read as follows:
Sec. 656.001. STATE AGENCY EMPLOYMENT OPENINGS. Any
agency, board, bureau, commission, committee, council, court,
department, institution, or office in the executive or judicial
branch of state government that has an employment opening for which
persons from outside the agency will be considered shall list the
opening with the Texas Workforce [Employment] Commission.
SECTION 10.06. Section 656.021(1), Government Code, is
amended to read as follows:
(1) "Commission" means the Texas Workforce
[Employment] Commission.
SECTION 10.07. Section 657.009, Government Code, is amended
to read as follows:
Sec. 657.009. PUBLIC ENTITIES TO LIST POSITIONS WITH TEXAS
WORKFORCE [EMPLOYMENT] COMMISSION. (a) A public entity shall
provide to the Texas Workforce [Employment] Commission, under rules
adopted under this section by the commission, information regarding
an open position that is subject to the hiring preference required
by this chapter.
(b) The Texas Workforce [Employment] Commission shall make
available to the public the information provided by a public entity
under Subsection (a).
(c) To promote the purposes of this chapter, the Texas
Workforce [Employment] Commission shall adopt rules under this
section that facilitate the exchange of employment information
between public entities and individuals entitled to a preference
under this chapter.
(d) The Texas Workforce [Employment] Commission shall adopt
forms and procedures necessary to administer this section.
SECTION 10.08. Section 772.0031(a), Government Code, is
amended to read as follows:
(a) The Human Resource Task Force is composed of a
representative of:
(1) the governor's office, appointed by the governor;
(2) the state auditor's office, appointed by the state
auditor;
(3) the comptroller's office, appointed by the
comptroller;
(4) the attorney general's office, appointed by the
attorney general;
(5) the Commission on Human Rights, appointed by the
presiding officer of that agency;
(6) the Employees Retirement System of Texas,
appointed by the presiding officer of the board of trustees of that
agency;
(7) the Texas Workforce Commission, appointed by the
executive director [presiding officer] of that agency;
(8) the Texas Workers' Compensation Commission,
appointed by the presiding officer of that agency;
(9) the Legislative Budget Board, appointed by the
presiding officer of the board;
(10) the State Agency Coordinating Council, appointed
by the presiding officer of that entity;
(11) the Texas Small State Agency Task Force,
appointed by the presiding officer of that entity;
(12) the Texas State Personnel Administrators
Association, appointed by the presiding officer of that entity; and
(13) each eligible state employee organization
certified by the comptroller under Section 403.0165, who must be
the chief elected representative of the organization.
SECTION 10.09. Section 2162.051(a), Government Code, is
amended to read as follows:
(a) The State Council on Competitive Government consists of
the following individuals or the individuals they designate:
(1) the governor;
(2) the lieutenant governor;
(3) the comptroller;
(4) the speaker of the house of representatives;
(5) the commission's presiding officer; and
(6) the commissioner of the Texas Workforce
[Employment] Commission representing labor.
SECTION 10.10. Section 115.002(c), Human Resources Code, is
amended to read as follows:
(c) The ex officio members are:
(1) the executive director [chair] of the Texas
Workforce [Employment] Commission;
(2) the commissioner of the Texas Rehabilitation
Commission;
(3) the executive director of the Texas Commission for
the Blind;
(4) the executive director of the Texas Commission for
the Deaf and Hard of Hearing; and
(5) other officials designated by the governor who
serve with other state agencies that provide services to persons
with disabilities.
SECTION 10.11. Section 61.005(a), Labor Code, is amended to
read as follows:
(a) In the case of contumacy or other refusal by a person to
obey a subpoena issued by [a member of] the commission or an
authorized representative of the commission to that person, any
county or district court of this state in the jurisdiction of which
the inquiry is carried on or in the jurisdiction of which the person
guilty of contumacy or refusal to obey is found, resides, or
transacts business has jurisdiction, on application by the
commission or its representative, to issue to the person an order
requiring the person to appear before [a commissioner,] the
commission[,] or its authorized representative to:
(1) produce evidence if so ordered; or
(2) testify regarding the matter under investigation
or in question.
SECTION 10.12. Section 62.107(c), Labor Code, is amended to
read as follows:
(c) The commissioner shall furnish a copy of each order
establishing a piece rate to the Texas Workforce [Employment]
Commission.
SECTION 10.13. Section 201.011(8), Labor Code, is amended
to read as follows:
(8) "Commission" means the Texas Workforce
[Employment] Commission.
SECTION 10.14. Sections 306.007(a) and (b), Labor Code, are
amended to read as follows:
(a) To assist in the reintegration into the labor force of
persons formerly sentenced to the institutional division or the
state jail division, the commission through Project RIO shall
provide:
(1) to those persons:
(A) information from local workforce development
boards on job training and employment referral services;
(B) information from the Texas Commission on
Alcohol and Drug Abuse on substance abuse treatment services;
(C) information from the Texas Department of
Housing and Community Affairs on housing services;
(D) information from the Texas Veterans
Commission on services for veterans; and
(E) information [from the Texas Department of
Human Services] on tax refund voucher programs under Subchapter H
[D], Chapter 301 [31, Human Resources Code]; and
(2) to the employers and potential employers of those
persons:
(A) information from the Texas Department of
Economic Development [Commerce] on the enterprise zone program [and
smart jobs fund program]; and
(B) information from local workforce development
boards on services listed in Section 2308.304, Government Code.
(b) The commission shall adopt a memorandum of
understanding with each of the following agencies that establishes
the respective responsibilities of the commission and the agencies
in providing information described by Subsection (a) to persons
formerly sentenced to the institutional division or the state jail
division of the Texas Department of Criminal Justice, to employers
or potential employers of those persons, and to local workforce
development boards:
(1) the Texas Commission on Alcohol and Drug Abuse;
(2) the Texas Department of Housing and Community
Affairs;
(3) the Texas Veterans Commission;
(4) the Texas Department of Human Services;
(5) the Texas Department of Economic Development
[Commerce]; and
(6) the Council on Workforce and Economic
Competitiveness.
ARTICLE 11. EFFECTIVE DATE
SECTION 11.01. Except as otherwise provided by this Act,
this Act takes effect September 1, 2003.