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79R5902 KSD-D

By:  Chavez                                                       H.B. No. 2421


A BILL TO BE ENTITLED
AN ACT
relating to the establishment, operation, and funding of the Texas jobs program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 302, Labor Code, is amended by adding Subchapter G to read as follows:
SUBCHAPTER G. TEXAS JOBS PROGRAM
Sec. 302.151. DEFINITIONS. In this subchapter: (1) "Employer" means a person that employs one or more employees. (2) "Existing employer" means an employer that: (A) has been liable to pay contributions under Subtitle A for more than one year; (B) has employees; and (C) is in compliance with the reporting and payment requirements of Subtitle A, as determined by the commission. (3) "Job" means employment on a basis customarily considered full-time for the applicable occupation and industry. (4) "Program" means the Texas jobs program created under this subchapter. Sec. 302.152. TEXAS JOBS PROGRAM; PURPOSE; ADMINISTRATION. (a) The Texas jobs program is created in the division as a workforce development incentive program to create employment opportunities and increase the job skills of the existing workforce in rural and medium-sized communities in this state by providing job training assistance to businesses operating in, or relocating to, those communities. (b) The program shall award grants for the creation and retention of jobs in rural and medium-sized communities in this state. At least 60 percent of the money spent under the program must be used for projects that assist existing employers in rural or medium-sized communities in this state. At least 20 percent of the money must be used for employers that relocate operations to rural or medium-sized communities in this state. (c) The commission by rule shall develop and adopt a scoring system that evaluates the economic impact of grant applications. The executive director shall use the scoring system and a competitive process to award the grants. It is the intent of the legislature that the money from the Texas jobs program be spent in rural and medium-sized communities of this state, as determined by the commission. (d) The commission shall determine appropriate means to accomplish the goals of the program. As necessary to implement those goals, the commission may work in conjunction with the comptroller. (e) The division shall administer the program. (f) The executive director may employ personnel as necessary to administer the program. Sec. 302.153. RULES. The commission shall adopt rules as necessary to implement the program. Sec. 302.154. FUNDING; TEXAS JOB FUND. (a) The Texas job fund is established as a special trust fund in the custody of the comptroller separate and apart from all public money or funds of this state. The fund is composed of: (1) money transferred into the fund under Section 204.153; (2) gifts, grants, and other donations received by the division for the fund; (3) money returned by employers or recouped by the program under Section 302.158; and (4) any amounts appropriated by the legislature for the program. (b) The program is funded through the Texas job fund. (c) Money in the Texas job fund may be used for program administration, marketing expenses, and evaluation of the program. Sec. 302.155. GRANTS. The executive director may award grants for projects that meet the requirements of this chapter. Sec. 302.156. GRANT APPLICATION; AWARDING OF GRANTS. (a) The following may apply for a grant under this subchapter: (1) one or more employers to secure training; or (2) one or more employers acting in partnership with an employer organization, labor organization, or community-based organization to secure training. (b) A grant application must be filed with the division in a form approved by the executive director and must include a complete business and training plan, including: (1) the location, number, and kind of jobs available; (2) the skills and competencies required for the identified jobs; (3) the goals, objectives, and outcome measures for the project; (4) the proposed curriculum for the project; and (5) the projected cost for each person enrolled, trained, hired, and retained in employment. (c) The division may provide assistance with the application process to all applicants. (d) The division shall minimize the length of the application form and shall simplify to the extent possible the review process for grant applications. (e) The division shall notify each applicant as to whether the application is complete not later than the fifth business day after the date on which the application is received by the division. Sec. 302.157. PARTICIPATION IN ADDITIONAL PROGRAMS; APPLICATION REQUIREMENTS. (a) A business may not apply both for a grant under this subchapter and to a public community or technical college for customized training and assessment from the college through a grant issued to the college under the skills development fund program established under Chapter 303 unless the business and the college file an application for concurrent participation in both programs. (b) The commission by rule shall establish the requirements for an application subject to this section. Sec. 302.158. CONTRACTS. (a) The executive director may approve any project that meets the requirements of this subchapter. If a project is approved and funds are available, the division shall enter into a contract with the grant applicant and with each employer participating in the project. The contract must specify those skills and competencies to be gained as a result of the project. (b) Reimbursable costs in the contract may include only those expenses related to direct training in job-related basic skills, including literacy skills, job-related vocational skills, and administrative costs. Total administrative costs for any particular project may not exceed 10 percent of the project's expenditures. (c) Each contract must state the term of the grant award. A grant recipient who does not use all money awarded under the grant for the prescribed purpose within the allotted term shall reimburse the program by submitting the appropriate amount to the executive director not later than the 30th day after the expiration date of the term of the grant award. The executive director shall remit money received under this subsection to the comptroller for deposit in the Texas jobs fund. Sec. 302.159. TEXAS JOBS PROGRAM CONTRACT PROVISIONS. The commission shall by rule require each Texas jobs contract to have: (1) clearly defined goals, outputs, and measurable outcomes that directly relate to program objectives; (2) clearly defined sanctions for noncompliance with contract terms; and (3) clearly specified accounting, reporting, and auditing requirements for funds received under program contracts. Sec. 302.160. TEXAS JOBS PROGRAM MONITORING PRACTICES. The commission by rule shall adopt program monitoring practices that include: (1) risk assessment to determine which contracts have the highest risk for fraud and abuse; and (2) a method to obtain and evaluate program cost information to ensure all costs, including administrative costs, are reasonable and necessary to achieve program objectives. Sec. 302.161. ANNUAL REPORT. (a) The commission shall report to the governor and the legislature at the end of each fiscal year on the status of the program. (b) The annual report must include for that fiscal year: (1) the total number of applications submitted, the total number of applications approved, and the total number of applications rejected; (2) the number of employers receiving grants under the program; (3) the total number of jobs created, enhanced, or retained under the program: (A) by occupation, classified by the applicable two-digit standard industrial classification; (B) by wage level; and (C) whether attributable to: (i) relocation of businesses to this state; or (ii) training or retraining of employees of existing employers; and (4) the average and median weekly wage levels of trainees entering or returning to the workforce, broken down by current employees undergoing retraining and new hires, at three months and one year after the conclusion of their training. SECTION 2. Chapter 204, Labor Code, is amended by adding Subchapter H to read as follows:
SUBCHAPTER H. EMPLOYMENT TRAINING INVESTMENT ASSESSMENT; FUNDS
Sec. 204.151. EMPLOYMENT TRAINING INVESTMENT ASSESSMENT. (a) In addition to any other taxes imposed under this subtitle, an employment training investment assessment is imposed on each employer paying contributions under this subtitle as a separate assessment of 0.1 percent of wages paid by the employer. (b) The commission shall deposit the revenue from the employment training investment assessment to the credit of the holding fund created under Section 204.152. (c) The employment investment training 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 in the custody of the comptroller separate and apart from all 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 TEXAS JOBS FUND AND COMPENSATION FUND. (a) If, on September 1 of a year, the commission determines that the amount in the compensation fund will exceed 100 percent of its floor as computed under Section 204.061 on the next October 1 computation date, the commission shall transfer the amount in the holding fund created under Section 204.152 to the Texas jobs fund created under Section 302.154. (b) If, on September 1 of a year, the commission determines that the amount in the compensation fund will be at or 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 Texas jobs fund. SECTION 3. The Texas Workforce Commission shall adopt rules to implement Subchapter G, Chapter 302, Labor Code, as added by this Act, not later than December 31, 2005. SECTION 4. This Act takes effect September 1, 2005.