S.B. No. 998




AN ACT

relating to contracts with local workforce development boards.                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (e), Section 2308.264, Government 
Code, is amended to read as follows:
	(e)  In consultation with local workforce development 
boards, the Texas Workforce Commission by rule shall establish 
contracting guidelines for boards under this section, including 
guidelines designed to:
		(1)  ensure that each independent contractor that 
contracts to provide one-stop workforce services under this section 
has sufficient insurance, bonding, and liability coverage for the 
overall financial security of one-stop workforce services funds and 
operations;
		(2)  prevent potential conflicts of interest between 
boards and entities that contract with boards under this section; 
[and]
		(3)  ensure that if a board acts as a fiscal agent for 
an entity that contracts with the board to provide one-stop 
workforce services, the board does not deliver the services or 
determine eligibility for the services; and
		(4)  ensure that an entity that contracts with a board 
under this section may use, display, and advertise the entity's 
name when providing workforce services for the board.
	SECTION 2.  The Texas Workforce Commission shall adopt rules 
as required by Subdivision (4), Subsection (e), Section 2308.264, 
Government Code, as added by this Act, as soon as practicable after 
the effective date of this Act.  Rules adopted by the Texas 
Workforce Commission under Subdivision (4), Subsection (e), 
Section 2308.264, Government Code, as added by this Act, apply to 
any existing contract for one-stop workforce services.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 998 passed the Senate on 
April 26, 2005, by the following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 998 passed the House on 
May 25, 2005, by the following vote:  Yeas 144, Nays 0, two 
present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor