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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.