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AN ACT
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relating to the creation of the Texas Industry-Recognized |
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Apprenticeship Programs Grant Program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 302, Labor Code, is amended by adding |
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Subchapter I to read as follows: |
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SUBCHAPTER I. TEXAS INDUSTRY-RECOGNIZED APPRENTICESHIP PROGRAMS |
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GRANT PROGRAM |
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Sec. 302.251. PURPOSE. The purpose of the Texas |
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Industry-Recognized Apprenticeship Programs Grant Program is to |
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address the immediate industrial workforce needs of this state |
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resulting from the impact of Hurricane Harvey and overall workforce |
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shortages. |
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Sec. 302.252. DEFINITIONS. In this subchapter: |
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(1) "Industry-recognized apprenticeship program" |
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means a training program that: |
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(A) provides on-the-job training, preparatory |
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instruction, supplementary instruction, or related instruction in |
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an occupation that has been recognized as an apprenticeable |
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occupation by the Office of Apprenticeship of the United States |
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Department of Labor; or |
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(B) is certified as an industry-recognized |
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apprenticeship program by a third-party certifier that has received |
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from the United States Department of Labor a favorable |
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determination of qualification to award that certification. |
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(2) "Person" does not include a governmental entity. |
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Sec. 302.253. PROGRAM. The commission shall establish and |
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administer the Texas Industry-Recognized Apprenticeship Programs |
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Grant Program to encourage the private sector to develop |
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specialized industry-recognized apprenticeship programs in this |
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state. Under the program, the commission shall award grants to |
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persons who meet the requirements of Section 302.255. |
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Sec. 302.254. TEXAS INDUSTRY-RECOGNIZED APPRENTICESHIP |
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FUND. (a) The Texas industry-recognized apprenticeship fund is a |
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dedicated account in the general revenue fund. |
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(b) The following amounts shall be deposited in the fund: |
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(1) money appropriated by the legislature for the fund |
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for purposes described by this subchapter; |
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(2) interest earned on the investment of money in the |
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fund; and |
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(3) gifts, grants, and other donations received for |
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the fund. |
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(c) The fund may be used only for an apprenticeship program |
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that meets the requirements of Section 302.255. |
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Sec. 302.255. APPLICATION; ELIGIBILITY FOR GRANT. The |
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commission shall establish eligibility criteria for a person to |
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receive a grant under this subchapter. The eligibility criteria |
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must include the requirement that the person: |
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(1) apply to the commission in the form and manner |
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prescribed by commission rule; |
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(2) if the person is an entity, be in good standing |
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under the laws of the state in which the person was formed or |
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organized, as evidenced by a certificate issued by the secretary of |
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state or the state official of another state having custody of the |
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records pertaining to a person formed or organized under the laws of |
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that state; |
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(3) not owe delinquent taxes to a taxing unit of this |
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state; and |
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(4) operate an industry-recognized apprenticeship |
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program that: |
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(A) provides on-the-job training under an |
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industry-recognized, accredited training curriculum; |
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(B) guarantees employment for participants |
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during and on successful completion of the training period; |
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(C) pays each participant a wage and provides |
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eligibility for participants to receive full-time employee |
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benefits during and on successful completion of the training |
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period; |
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(D) requires participants to advance their |
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skills, at a minimum, to a credentialed, performance-verified |
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mid-level status in a field related to the industry-recognized |
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apprenticeship program; |
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(E) has a duration of not more than 26 weeks; and |
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(F) gives preference to training and hiring: |
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(i) unemployed Texans who have filed with |
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the commission; |
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(ii) veterans of the United States armed |
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forces; |
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(iii) formerly incarcerated individuals; |
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and |
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(iv) underemployed individuals who are |
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working without industry-recognized certifications or other |
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credentials. |
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Sec. 302.256. GRANT AWARD; GRANT AMOUNT. (a) The |
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commission may award grants under this subchapter only to reimburse |
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an eligible person for the cost of training industry-recognized |
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apprenticeship program participants who: |
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(1) complete a program operated by the person that |
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meets the requirements of Section 302.255(4) having achieved the |
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skills level required by Section 302.255(4)(D); and |
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(2) maintain suitable employment for at least 12 |
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consecutive months immediately following completion of the |
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program. |
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(b) Grant funds awarded to an eligible person under this |
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subchapter must be awarded on a per industry-recognized |
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apprenticeship program participant basis. The amount of a grant |
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awarded to an eligible person for training a participant described |
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by Subsection (a) may not exceed the lesser of: |
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(1) the total cost to the person for training the |
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participant, excluding wages and benefits; or |
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(2) $10,000. |
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(c) In determining the amount of a grant awarded under this |
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subchapter for an industry-recognized apprenticeship program |
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participant, the commission may consider the increased economic |
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value to the state resulting from or reasonably anticipated to |
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result from the participant's completion of the program, including |
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by considering any increase or anticipated increase in the amount |
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of tax revenue generated by the participant, and any decrease in the |
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participant's use of a state-funded benefit, attributable to the |
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participant's job placement and earning projections. The |
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commission by rule may establish guidelines or formulas for |
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determining an increase in economic value to the state attributable |
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to a participant's program completion for purposes of this |
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subsection. |
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(d) The commission by rule may establish limitations on the |
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total amount of grant funds that a person may be awarded under this |
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subchapter. |
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Sec. 302.257. PROGRAM RULES. (a) The commission shall |
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adopt rules to administer and enforce this subchapter. |
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(b) The commission shall post the rules on its Internet |
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website. |
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Sec. 302.258. ANNUAL REPORT. (a) Not later than December 1 |
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of each year, the commission shall submit to the lieutenant |
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governor, the speaker of the house of representatives, and the |
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members of the legislature a report on grants made under this |
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subchapter that states: |
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(1) the number of direct jobs each grant recipient |
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created in this state in each job category of the federal Equal |
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Employment Opportunity Commission's job classification guide; |
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(2) the median wage of the jobs each grant recipient |
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created in this state; |
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(3) the total amount of each grant awarded to a grant |
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recipient; |
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(4) the number and categorization of |
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industry-recognized apprenticeship program participants trained |
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and employed by each grant recipient under Section 302.255(4)(F); |
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(5) a determination of whether the grant program |
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administered under this subchapter has resulted in a positive |
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return on investment to the state and an explanation of the methods |
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used by the commission in making that determination; and |
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(6) if the commission considers it appropriate and |
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feasible, a list of recommendations for legislative or other |
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changes to the grant program administered under this subchapter to |
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increase the return on investment to the state. |
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(b) The report may not include information that is made |
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confidential by law. |
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(c) The commission may require a grant recipient under this |
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subchapter to submit, on a form provided by the commission, |
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information required to complete the report. |
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(d) The commission shall post the annual report on its |
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Internet website. |
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SECTION 2. The Texas Workforce Commission is required to |
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implement a provision of this Act only if the legislature |
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appropriates money specifically for that purpose. If the |
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legislature does not appropriate money specifically for that |
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purpose, the Texas Workforce Commission may, but is not required |
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to, implement a provision of this Act using other appropriations |
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available for that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2784 was passed by the House on May |
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10, 2019, by the following vote: Yeas 117, Nays 16, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2784 on May 24, 2019, by the following vote: Yeas 119, Nays 23, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2784 was passed by the Senate, with |
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amendments, on May 22, 2019, by the following vote: Yeas 27, Nays |
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4. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |