79R14588 KSD-D


By:  Chavez, Villarreal, Castro, Leibowitz                        H.B. No. 2421


A BILL TO BE ENTITLED
AN ACT
relating to the use of an employer assessment to fund the skills development program and authorizing the Texas Workforce Commission to develop new job incentive programs. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 204.006(a), Labor Code, is amended to read as follows: (a) A person's contribution rate for the calendar year in which the person becomes an employer is the greater of: (1) the rate established for that year for the major group to which the employer is assigned under Section 204.004, less one-tenth of one percent; or (2) two and six-tenths [seven-tenths] percent. SECTION 2. Subchapter D, Chapter 204, Labor Code, is amended by adding Section 204.0625 to read as follows: Sec. 204.0625. ADJUSTMENT TO REPLENISHMENT TAX RATE. On and after January 1, 2006, the replenishment tax rate computed under Section 204.062 shall be adjusted to a rate computed by subtracting one-tenth of one percent from the percentage computed under Section 204.062(a). SECTION 3. Chapter 204, Labor Code, is amended by adding Subchapter H to read as follows:
SUBCHAPTER H. SKILLS DEVELOPMENT ASSESSMENT; FUNDS
Sec. 204.151. SKILLS DEVELOPMENT ASSESSMENT. (a) In addition to any other taxes imposed under this subtitle, a skills development assessment is imposed on and after January 1, 2006, on each employer paying contributions under this subtitle as a separate assessment of one-tenth of one percent of wages paid by the employer. (b) The commission shall deposit the revenue from the skills development assessment to the credit of the holding fund created under Section 204.152. (c) The skills development assessment is due at the same time, collected in the same manner, and subject to the same penalties and interest as other contributions assessed under this subtitle. Sec. 204.152. HOLDING FUND. (a) The holding fund is a special trust fund outside of the state treasury in the custody of the comptroller separate and apart from all other public money or funds of this state. (b) The comptroller shall administer the holding fund in accordance with the directions of the commission. Interest accruing on amounts in the holding fund shall be deposited quarterly to the credit of the compensation fund. Sec. 204.153. TRANSFER TO SKILLS DEVELOPMENT FUND, SKILLS DEVELOPMENT ECONOMIC STABILIZATION FUND, AND COMPENSATION FUND. (a) If, on September 1 of a year, the commission determines that the amount in the compensation fund is at or will exceed 100 percent of its floor as computed under Section 204.061 on the next October 1 computation date, the commission shall transfer to the skills development fund created under Section 303.003 an amount from the holding fund created under Section 204.152 not to exceed the lesser of the amount appropriated by the legislature to the skills development fund in that year or 80 percent of the amount in the holding fund. The commission shall transfer the remaining amount in the holding fund to the skills development economic stabilization fund created under Section 303.0032. (b) If, on September 1 of a year, the commission determines that the amount in the compensation fund will be below 100 percent of its floor as computed under Section 204.061 on the next October 1 computation date, the commission shall transfer to the compensation fund as much of the amount in the holding fund as is necessary to raise the amount in the compensation fund to 100 percent of its floor, up to and including the entire amount in the holding fund. The commission shall transfer any remaining balance in the holding fund to the skills development fund and skills development economic stabilization fund as prescribed by Subsection (a). SECTION 4. Section 303.003, Labor Code, is amended by adding Subsection (b-1) to read as follows: (b-1) The commission by rule may establish and develop additional job incentive programs that use the skills development fund to create incentives for public community and technical colleges in partnership with one or more employers to provide workforce training in an effort to create and retain employment opportunities in this state. SECTION 5. Chapter 303, Labor Code, is amended by adding Sections 303.0031 and 303.0032 to read as follows: Sec. 303.0031. USE OF MONEY IN HOLDING FUND (GENERAL REVENUE ACCOUNT 5069) FOR SKILLS DEVELOPMENT. Money in the holding fund (general revenue account number 5069) may be used only for the purposes for which the money in the skills development fund created under Section 303.003 may be used. Sec. 303.0032. SKILLS DEVELOPMENT ECONOMIC STABILIZATION FUND. (a) The skills development economic stabilization fund is established as a special trust fund outside of the state treasury in the custody of the comptroller separate and apart from all other public money or funds of this state. The fund is composed of: (1) money transferred into the fund under Section 204.153; and (2) gifts, grants, and other money received by the commission for deposit in the fund. (b) Money in the skills development economic stabilization fund may be transferred to the skills development fund created under Section 303.003 not later than September 30 of any year in which the funds in the holding fund under Section 204.152 are insufficient to meet the legislative appropriation made for the skills development fund in that year. (c) Interest accruing on money in the skills development economic stabilization fund shall be deposited quarterly to the credit of the compensation fund. SECTION 6. Section 2308.308, Government Code, is amended to read as follows: Sec. 2308.308. PUBLIC COMMUNITY COLLEGE. A public community college shall promptly provide workforce training and services that are requested: (1) by a board if the need for the training and services is based on the labor market information system available for the area; (2) by employers located in the college's taxing district when the request is presented directly to the college by the employers or through the board; or (3) as part of economic development incentives designed to attract or retain an employer, including incentives offered under the skills development [smart jobs] fund program under [Subchapter J,] Chapter 303, Labor Code [481]. SECTION 7. The change in law made by this Act to Section 204.006(a), Labor Code, takes effect January 1, 2006. SECTION 8. Except as provided by Section 7 of this Act, this Act takes effect September 1, 2005.