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  87R4498 MLH-D
 
  By: Thierry H.B. No. 1032
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certain public school workforce training programs
  funded by the skills development fund and to authorizing school
  districts to provide funding using money received under the
  Foundation School Program to community-based organizations for
  purposes of reimbursing private employers for paid internships
  provided to certain students in career and technology education
  programs in the district.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter F, Chapter 29, Education Code, is
  amended by adding Section 29.1871 to read as follows:
         Sec. 29.1871.  CONTRACT TO REIMBURSE FOR PAID INTERNSHIP.
  (a) In this section, "community-based organization" has the
  meaning assigned by Section 303.001, Labor Code.
         (b)  To encourage private employers to participate with
  school districts in providing career and technology education to
  assist students in developing the knowledge, skills, and
  competencies necessary for a broad range of career opportunities,
  the board of trustees of a school district may contract with a
  community-based organization to:
               (1)  match students in grade 11 or 12 who are
  participating in a career and technology education program in the
  district with paid internships or similar programs provided by
  private employers; and 
               (2)  reimburse private employers for all or part of the
  cost of providing paid internships or similar programs to students
  described by Subdivision (1) using funds provided to the
  community-based organization by the district.
         (c)  A contract described by Subsection (b) must:
               (1)  require each paid internship or similar program
  provided to the school district's students to primarily promote a
  public purpose of the district relating to career and technology
  education;
               (2)  include provisions under which the school district
  is granted sufficient control to ensure that the public purpose
  under Subdivision (1) is accomplished and the district receives the
  return benefit; and
               (3)  ensure that each student employed under a paid
  internship or similar program is paid at least the minimum wage
  required by law.
         (d)  In providing funds to a community-based organization
  for the purposes of reimbursing a private employer under a contract
  under Subsection (b), the school district may use funds allocated
  to the district for career and technology education under Section
  48.106.
         (e)  A community-based organization with which a school
  district contracts under Subsection (b) may serve as the employer
  of record for a student employed under a paid internship or similar
  program provided under a contract described by Subsection (b).
         (f)  Completion of a paid internship or similar program
  provided under a contract described by Subsection (b) may satisfy a
  requirement to complete a practicum as part of a school district's
  career and technology education program.
         SECTION 2.  Section 48.106(c), Education Code, is amended to
  read as follows:
         (c)  At least 55 percent of the funds allocated under this
  section must be used:
               (1)  in providing career and technology education
  programs in grades 7 through 12; or
               (2)  in providing funding to a community-based
  organization under a contract entered into under Section 29.1871
  for purposes of reimbursing private employers for providing paid
  internships or similar programs to students in career and
  technology education programs.
         SECTION 3.  Section 303.001(a), Labor Code, is amended to
  read as follows:
         (a)  The purpose of this chapter is to remove administrative
  barriers that impede the response of school districts and
  open-enrollment charter schools described by Section 303.003(b-3), 
  public community and technical colleges, community-based
  organizations, local workforce development boards, and the Texas
  A&M Engineering Extension Service to industry and workforce
  training needs and to develop incentives for those entities [public
  community and technical colleges, community-based organizations,
  local workforce development boards, and the Texas A&M Engineering
  Extension Service] to provide customized assessment and training in
  a timely and efficient manner.
         SECTION 4.  Section 303.001(b), Labor Code, is amended by
  adding Subdivision (3) to read as follows:
               (3)  "Open-enrollment charter school" has the meaning
  assigned by Section 5.001, Education Code.
         SECTION 5.  Section 303.002, Labor Code, is amended to read
  as follows:
         Sec. 303.002.  WAIVER; RECOVERY OF CERTAIN COSTS. (a) The
  commission may review and recommend to the legislature the waiver
  of any requirements set forth in the [Title 3,] Education Code, as
  they may apply to a school district or open-enrollment charter
  school described by Section 303.003(b-3) or a public community and
  technical college [colleges], that impede the ability of the
  district, school, or [such a] college to develop in a timely manner
  customized training for demand occupations in particular
  industries, including statutes or regulations limiting costs that
  may be recovered from state funds by the district, school, or [a
  public community or technical] college [from state funds].
         (b)  A school district or open-enrollment charter school
  described by Section 303.003(b-3), a public community or technical
  college, or the Texas A&M Engineering Extension Service may recover
  customized assessment and training costs incurred by the district,
  school, college, or service [institution] if:
               (1)  there is an actual or projected labor shortage in
  the occupation in which training is provided that is not being met
  by an existing institution or program in the area; and
               (2)  the wages at the time of job placement for
  individuals who successfully complete customized training at the
  district, school, [public community or technical] college, or
  service [the Texas A&M Engineering Extension Service] are equal to
  the prevailing wage for that occupation in the local labor market
  area.
         SECTION 6.  Section 303.003, Labor Code, is amended by
  amending Subsections (b), (b-1), (f), and (g) and adding
  Subsections (b-3) and (c-1) to read as follows:
         (b)  The skills development fund may be used by school
  districts and open-enrollment charter schools described by
  Subsection (b-3), public community and technical colleges,
  community-based organizations, local workforce development boards,
  and the Texas A&M Engineering Extension Service as start-up or
  emergency funds for the following job-training purposes:
               (1)  developing customized training programs for
  businesses and trade unions; and
               (2)  sponsoring small and medium-sized business
  networks and consortiums.
         (b-1)  The commission by rule may establish and develop
  additional job incentive programs that use the skills development
  fund to create incentives for school districts and open-enrollment
  charter schools described by Subsection (b-3) or public community
  and technical colleges in partnership with one or more employers,
  including prospective employers who commit to establishing a place
  of business in this state, to provide workforce training in an
  effort to create and retain employment opportunities in this state.
  Under a program established under this subsection, the commission
  may commit money to a prospective employer described by this
  subsection contingent on the employer's establishment of a place of
  business in this state.
         (b-3)  In addition to the programs established under
  Subsections (b), (b-1), and (b-2), the commission by rule shall
  establish and develop additional programs using the skills
  development fund under which a school district or open-enrollment
  charter school that includes a high school that provides a career
  and technology education program in which at least 35 percent of the
  students at the high school are enrolled may provide through that
  high school customized workforce training opportunities designed
  specifically to meet regional emerging future industry and
  workforce training needs identified by the commission for purposes
  of this subsection. To participate in a program established under
  this subsection, a school district or open-enrollment charter
  school is not required to partner with one or more specific
  institutions of higher education.
         (c-1)  A community-based organization is not eligible for
  reimbursement under a contract entered into with a school district
  under Section 29.1871, Education Code, for an expense of the
  organization for a purpose described by Subsection (b) and for
  which purpose the organization received money from the skills
  development fund under this chapter. 
         (f)  The Texas A&M Engineering Extension Service shall focus
  the service's training activities under this chapter on programs
  that:
               (1)  are statewide in nature; or
               (2)  are not available from a school district or
  open-enrollment charter school described by Subsection (b-3), a
  local junior college district, a local technical college, or a
  consortium of junior college districts.
         (g)  This section does not prohibit the Texas A&M Engineering
  Extension Service from participating in a consortium of junior
  college districts or with a school district or open-enrollment
  charter school described by Subsection (b-3) or a technical college
  that provides training under this chapter.
         SECTION 7.  Section 303.004, Labor Code, is amended to read
  as follows:
         Sec. 303.004.  FUND REVIEW; REPORT BY CERTAIN WORKFORCE
  TRAINING PROVIDERS REQUIRED. (a) The Texas Higher Education
  Coordinating Board shall review all customized training programs
  biennially to verify that state funds are being used appropriately
  by school districts and open-enrollment charter schools described
  by Section 303.003(b-3), public community and technical colleges,
  and the Texas A&M Engineering Extension Service under this chapter.
  The Texas Education Agency shall assist the Texas Higher Education
  Coordinating Board as necessary in the board's review of a
  customized training program provided by a high school of a school
  district or open-enrollment charter school described by Section
  303.003(b-3).
         (b)  Not later than October 1 of each even-numbered year,
  each school district and each open-enrollment charter school
  described by Section 303.003(b-3), the Texas A&M Engineering
  Extension Service, and each public community or technical college
  that provides workforce training under this chapter shall:
               (1)  conduct a review of the district's, school's,
  service's, or college's training programs to:
                     (A)  determine the effectiveness of the programs
  in improving the wages of participants who complete the programs;
  and
                     (B)  identify strategies for improving the
  delivery of workforce training in order to more effectively impact
  economic development in this state; and
               (2)  submit to the commission a detailed written report
  summarizing the results of the review for inclusion by the
  executive director in the report to the governor and the
  legislature required by Section 303.006(c).
         (c)  If a school district or open-enrollment charter school
  described by Section 303.003(b-3), the Texas A&M Engineering
  Extension Service, or a public community or technical college fails
  to submit a report required by Subsection (b)(2):
               (1)  the district, school, service, or college must
  refund to the comptroller any unexpended state funds received by
  the district, school, service, or college under this chapter for
  the state fiscal biennium in which the report was due; and
               (2)  the commission may not award any additional grant
  to the district, school, service, or college under this chapter
  until the district, school, service, or college has complied with
  that reporting requirement.
         SECTION 8.  Section 303.006(d), Labor Code, is amended to
  read as follows:
         (d)  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 by region of the state;
               (2)  the average and median weekly wage levels of
  trainees under this chapter entering or returning to the workforce,
  broken down by:
                     (A)  current employees undergoing retraining;
                     (B)  new hires; and
                     (C)  region of the state;
               (3)  the average and median weekly wage levels of
  trainees under this chapter entering or returning to the workforce,
  broken down by region of the state;
               (4)  the number and percentage of trainees covered by
  health care insurance coverage, workers' compensation insurance
  coverage, and other analogous benefit programs;
               (5)  the total amount of money awarded in each region of
  the state and the percentage that amount represents of the total
  amount of money awarded on a statewide basis;
               (6)  a comparison of the percentage of total dollars
  awarded to each region versus each region's percentage of:
                     (A)  the state's population;
                     (B)  the civilian labor force;
                     (C)  the number of unemployed persons; and
                     (D)  the number of qualified grant applications
  submitted to the commission by school districts and open-enrollment
  charter schools described by Section 303.003(b-3) and public
  community and technical colleges;
               (7)  the total amount of money awarded to
  micro-employers, small employers, medium employers, and large
  employers, reported by region of the state; and
               (8)  the total number of jobs created or persons
  retrained under the program:
                     (A)  by region of the state;
                     (B)  by occupation classified by the two-digit
  standard industrial classification;
                     (C)  by wage level; and
                     (D)  whether attributable to:
                           (i)  relocation of businesses to this state;
  or
                           (ii)  training or retraining of employees of
  existing employers.
         SECTION 9.  This Act takes effect September 1, 2021.