HBA-AMW, SEP C.S.H.B. 1243 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1243
By: Villarreal, Mike
Economic Development
4/20/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Texas Workforce Commission currently tracks the short-term employment
history of a former recipient of assistance under its employment programs
for a maximum of 12 months after the recipient leaves the program.  The
ability of former recipients to earn a living wage is essential to the
success of welfare-towork programs, but there may be little increase in a
recipient's wages over time.  Low wage growth may arise either from low
returns to increased work experience or from low levels of experience.
Determining which factor is the cause of low wage growth could be
significant in designing effective welfare policy. C.S.H.B. 1243 requires
the employment history tracking of former program recipients for a minimum
of three years, and provides measures for assessing recipients' abilities
to achieve and maintain long-term selfsufficiency. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 1243 amends the Labor Code to require the Texas Workforce
Commission (TWC) division of workforce development, in cooperation with the
Texas Department of Human Services, to develop and implement a system to
monitor the long-term employment history of persons who are former
recipients of assistance under certain employment programs operated by the
division.  The bill sets forth provisions regarding the system's design,
including the provision that the system must track recipients' wage and
employment outcomes for three years after leaving the employment program.
The bill requires TWC to report to the legislature information obtained
from the system, separately or as a part of any other required report, not
later than January 1 of each odd-numbered year.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.  

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1243 modifies the original by providing that the system developed
by the Texas Workforce Commission (TWC) division of workforce development
to monitor the long-term employment history of persons who are former
recipients of division assistance must track the wage and employment
outcomes of the recipient for at least three years, rather than at least 12
months but no more than five years, and provide information regarding the
recipient's household composition.  The substitute removes the provision in
the original requiring the system to compare the recipient's household
earnings to a self-sufficiency standard.  The substitute changes the date
by which TWC is required to report to the legislature from March 1 to
January 1 of each odd-numbered year.