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.