HBA-TYH, NLM H.B. 2401 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2401 By: Keffer Economic Development 7/22/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, the Education Code allowed for Career and Technology Education enrichment curricula to be offered to promote partnerships between students and businesses. These types of programs have been developed nationwide and many states have incorporated youth apprenticeship and internship programs into statute. H.B. 2401 acknowledges a voluntary relationship between students and businesses by codifying apprenticeship and internship programs. This bill establishes the voluntary workforce training program and requires the Texas Education Agency and the Texas Workforce Commission to adopt rules for the program administration. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Education Agency and the Texas Workforce Commission in SECTION 1 (Section 311.004, Labor Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle B, Title 4, Labor Code, by adding Chapter 311, as follows: CHAPTER 311. VOLUNTARY WORKFORCE TRAINING FOR CERTAIN STUDENTS Sec. 311.001. DEFINITIONS. Defines "agency," "certified program," "participant," and "sponsor." Sec. 311.002. CERTIFICATION STANDARDS. Provides that to be eligible for certification by the Texas Education Agency (agency) under this chapter, a program must: (1) be conducted under an organized, written plan embodying the terms and conditions of employment, job training, classroom instruction, and supervision of participants and be subscribed to by a sponsor who has undertaken to carry out the program; (2) comply with all state and federal laws, including laws pertaining to fair labor standards and workplace health and safety; (3) comply with recognized industry standards applicable to the program in which the participant is engaged; and (4) include an agreement by the employer to assign an employee to serve as a mentor for the participant. Sec. 311.003. CERTIFIED PROGRAM AGREEMENT. (a) Provides that a certified program must be conducted under a signed written agreement between each participant and the employer. Specifies that the agreement may contain at least the following: (1) the name and signature of the participant, the sponsor, and the employer, and a parent or guardian of the participant if the participant is under 18 years of age; (2) a description of the career field in which the participant is to be trained, the academic and technical skills to be attained, and the beginning date and duration of the broad-based training; (3) the employer's agreement to provide paid employment, at a base wage not less than the minimum wage, for the participant during the participant's junior and senior years in high school and after the participant's first year of postsecondary education; (b) Prohibits a participant's time spent in a program under Subsection (a) from exceeding 15 hours a week, without regard to whether the participant is paid for the time. (c) Provides that a participant may, but is not required to, enter into a postsecondary education agreement with the participant's employer. Provides that an agreement under this subsection must include: (1) the participant's agreement to pay half of the participant's wages to be held in trust to be applied toward the participant's postsecondary education and the employer's agreement to pay into the trust an additional amount equal to the amount paid by the participant; (2) the participant's agreement to work for the employer for at least two years following the date of completion of the participant's postsecondary education; (3) the employer's agreement to pay the participant during the period described by Subdivision (2) at least the prevailing wage for employees performing similar work and to provide other employee benefits to which employees performing similar work are entitled; and (4) the participant's agreement to reimburse the employer if the participant fails to perform the two years of employment described by Subdivision (2) for the employer's contribution to the trust established under Subdivision (1), plus interest at the prime interest rate at the time the participant defaults on the agreement. (d) Requires the participant and employer each to be refunded their respective contributions to the trust established under Subsection (c)(1) and a pro rata share of the interest earned on the money in the trust, not later that the 30th day after the last date of participation in the program, if a participant decides not to continue in the program before beginning the participant's postsecondary education. (e) Provides that the money held in trust under Subsection (c)(1) must be held in trust for the benefit of the participant under rules adopted by the agency. Specifies that payment into a trust approved under 29 U.S.C. Section 1103 (Establishment of Trust) for the benefit of the participant satisfies the requirement of this subsection. Provides that the fund must be specified in the agreement. (f) Prohibits an employer who enters into an agreement under this section from retaining participants solely to replace the employer's current employees. Sec. 311.004. RULEMAKING. Requires the agency and the Texas Workforce Commission (commission) to adopt rules as necessary to administer each entity's duties under this chapter. Requires the agency and commission to cooperate with each other in adopting rules so that all rules adopted under this chapter are consistent and easily administered to the extent possible. Provides that rules adopted under this section must include a requirement that participation in a certified program under this chapter is voluntary. Sec. 311.005. COMMISSION DUTIES; LOCAL WORKFORCE DEVELOPMENT BOARDS. Sets forth required duties to be performed by the commission. Requires a local workforce development board, working in partnership with other local and regional entities, to provide to secondary and postsecondary schools and employers in the area in which the board is established information and technical assistance as necessary to implement this chapter. SECTION 2. Amends Chapter 61, Education Code, by adding Subchapter T, as follows: SUBCHAPTER T. TECH-PREP EDUCATION Sec. 61.851. DEFINITIONS. Defines "articulation agreement," "junior college," "tech-prep consortium," and "technical college." Sec. 61.852. TECH-PREP PROGRAM. Describes the program of study for a tech-prep program. Provides that a tech-prep consortium is encouraged to include four years of secondary education in a tech-prep program, notwithstanding other provisions of this section. Sec. 61.853. REGIONAL TECH-PREP CONSORTIA: GOVERNING BOARD; DIRECTOR; FISCAL AGENT. (a) Provides that each regional tech-prep consortium is governed by a governing board composed of private sector and public sector leaders in the ratio agreed by the participants in the consortium. Authorizes a consortium at local option to consolidate governing board members and staff with an eligible local entity to achieve administrative efficiencies and operational coordination. Requires the combined entity to maintain a proper separation of funds and comply with all applicable legal requirements involving the use of separate funds. (b) Requires the governing board to determine the policies of the tech-prep consortium in accordance with the consortium's written bylaws. Provides that the bylaws must specify the major relationships, decision-making and operational processes, and other significant policies of the consortium, including the procedures for filling vacancies on the governing board. (c) Provides that according to the terms of a written agreement between a governing board and the fiscal agent, a consortium director shall be selected. (d) Requires the governing board to select one of a variety of entities to act as the techprep consortium's fiscal agent and to provide human resource and business office services for the consortium. Provides that the fiscal agent serves under the terms of a written agreement between the governing board and the fiscal agent. Sec. 61.854. TECH-PREP CONSORTIUM ALLOTMENT. (a) Requires the Texas Higher Education Coordinating Board (board), as the agent of the Texas Education Agency, to allot the federal tech-prep implementation, in each fiscal year, money this state receives to the regional tech-prep consortia for regional administration according to regionally developed plans designed to meet federal, state, and regional goals. Sets forth the manner in which the board is required to allot the money. (b) Provides that an eligible tech-prep consortium that desires assistance under this section must submit an application to the board in the manner provided. (c) Requires the board to make a payment in the specified amount if a tech-prep consortium has a completed application on file under Subsection (b). Sec. 61.855. GRANTS FOR TECH-PREP EDUCATION. Requires the board to award grants to tech-prep consortia for tech-prep programs described by this section. Sets forth the required composition of a tech-prep consortium to be eligible for a grant. Additionally, specifies an institution of higher education that awards a baccalaureate degree and employers or labor organizations as a tech-prep consortium. Provides that a tech-prep program must include specified programs, provide specified services, and meet certain requirements. Provides that a tech-prep consortium that receives a grant under this section must use the money awarded to develop and operate a tech-prep program described by this section. Authorizes a tech-prep program to provide for the acquisition of tech-prep program equipment, acquire technical assistance from certain state or local entities, and establish articulation agreements with certain entities. Sec. 61.856. GRANT APPLICATION. Provides that each regional tech-prep consortium that desires to obtain a grant under this subchapter must submit an application to the board at the time and in the manner the board prescribes. Specifies that an application under this section must contain certain information. Requires the board to approve the application if the application meets the requirements of this section and Section 61.854(b). Requires the board to give special consideration to certain applications for a tech-prep program. Requires the board to ensure an equitable distribution of assistance between urban and regional consortium participants in awarding grants under this subchapter. Sec. 61.857. REPORT; REVIEW OF FIVE-YEAR PLAN. Requires each regional techprep consortium that receives a grant under this subchapter to annually prepare and submit to the board a written report on the effectiveness of the programs. Provides that the report must include a description of the manner in which the consortium awarded any subgrants in the region served by the consortium. Requires the consortium to review the plan and make any changes necessary, after the second year of the five-year plan. SECTION 3. Amends Subsection (b), Section 39.051, Education Code, to include, as an indicator adopted under this section, the articulated postsecondary degree programs described by Section 61.852, and certified workforce training programs described by Chapter 311, Labor Code. SECTION 4. (a) Effective date: September 1, 1999. (b) Provides that the change in law made by this Act does not affect the validity of a workforce training program for students in secondary and postsecondary education that is in existence on the effective date of this Act. SECTION 5. Emergency clause.