By: Jackson S.B. No. 2

A BILL TO BE ENTITLED

AN ACT

relating to certain economic and workforce development programs through which employers may receive grants and subsidies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 481.078, Government Code, is amended by adding Subsection (m) to read as follows:

(m) Notwithstanding Subsections (e) and (e-1), during the state fiscal biennium that begins on September 1, 2011, the governor shall transfer $15 million from the fund to the Texas Workforce Commission to fund the Texas Back to Work Program established under Chapter 313, Labor Code, and $30 million from the fund to the skills development fund established under Section 303.003, Labor Code. The governor shall begin transferring money as required by this subsection as soon as possible after September 1, 2011, and may make more than one transfer if necessary to satisfy the requirements of this subsection.

SECTION 2. Chapter 481, Government Code, is amended by adding Subchapter M to read as follows:

SUBCHAPTER M. PUBLIC-PRIVATE COMPETITIVENESS INITIATIVE

FOR INDUSTRY CLUSTERS

Sec. 481.181. DEFINITION. In this subchapter, "industry cluster organization" means an organization whose purpose is to increase the competitiveness of businesses and industries within an industry cluster.

Sec. 481.182. PUBLIC-PRIVATE COMPETITIVENESS INITIATIVE FOR INDUSTRY CLUSTERS. (a) The office shall create the Public-Private Competitiveness Initiative for Industry Clusters.

(b) The purpose of the initiative is to foster and support the creation of industry cluster organizations.

Sec. 481.183. MATCHING GRANTS. The office may award matching grants as provided by this subchapter to accomplish the purposes of the initiative.

Sec. 481.184. ELIGIBLE ENTITIES. The following entities are eligible to apply for a grant:

(1) a municipality;

(2) a county;

(3) a chamber of commerce;

(4) a public or private institution of higher education; and

(5) a business.

Sec. 481.185. PROPOSAL. To be awarded a matching grant under the initiative, an eligible entity must submit a proposal, in the form prescribed by the office, to create an industry cluster organization.

Sec. 481.186. PRIORITY FOR AWARDS. (a) The office shall develop criteria for selecting proposals for matching grants under the initiative.

(b) In developing the criteria, the office shall give priority to proposals that focus on:

(1) making this state a stronger exporter of goods and services;

(2) enhancing educational and employment opportunities for the workers of this state; and

(3) stimulating local economic growth.

Sec. 481.187. AMOUNT OF MATCHING GRANT. The amount of the matching grant may not exceed $1 for every $5 obtained for the proposal from other sources by an applicant whose proposal is approved.

Sec. 481.188. REPORTING REQUIREMENT. Not later than January 1 of each odd-numbered year, the office shall submit a report to the legislature regarding the activities of the initiative. The report must include the following information:

(1) the total number of grants and the total amount of grant money awarded under the initiative; and

(2) the distribution of grants awarded among industry clusters in this state.

SECTION 3. Section 303.003, Labor Code, is amended by adding Subsection (b-2) to read as follows:

(b-2) From money available to the skills development fund program, the commission shall allocate not less than $5 million each state fiscal biennium for businesses with fewer than 100 employees that partner with one of the entities under Subsection (b) to provide job-training skills to the business's employees. A business that receives money for job-training purposes under this subsection may not receive more than:

(1) $1,450 per new employee for training costs associated with that employee; and

(2) $725 per retained employee for training costs associated with retaining that employee.

SECTION 4. Subtitle B, Title 4, Labor Code, is amended by adding Chapter 313 to read as follows:

CHAPTER 313. TEXAS BACK TO WORK PROGRAM

Sec. 313.001. DEFINITION. In this chapter, "qualified applicant" means a person who made less than $40 per hour at the person's last employment before becoming unemployed.

Sec. 313.002. INITIATIVE ESTABLISHED. (a) The Texas Back to Work Program is established within the commission.

(b) The purpose of the program is to establish public-private partnerships with employers to transition residents of this state from receiving unemployment compensation to becoming employed as members of the workforce.

(c) An employer that participates in the initiative may receive a wage subsidy for hiring one or more qualified applicants who are unemployed at the time of hire.

Sec. 313.003. RULES. The executive director may adopt rules as necessary to implement this chapter.

SECTION 5. Not later than March 1, 2012, the Texas Economic Development and Tourism Office shall adopt any necessary rules for the Public-Private Competitiveness Initiative for Industry Clusters established under Subchapter M, Chapter 481, Government Code, as added by this Act.

SECTION 6. 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, 2011.