Texas 2019 - 86th Regular

Texas House Bill HB2784 Compare Versions

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1		-	H.B. No. 2784
	1	+	By: Phelan, et al. (Senate Sponsor - Alvarado) H.B. No. 2784
	2	+	(In the Senate - Received from the House May 13, 2019;
	3	+	May 13, 2019, read first time and referred to Committee on Business &
	4	+	Commerce; May 20, 2019, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 7, Nays 1;
	6	+	May 20, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 2784 By: Nichols
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5		-	relating to the creation of the Texas ~~Industry-Recognized~~
6		-	Apprenticeship ~~Programs~~ Grant Program.
	13	+	relating to the creation of the Texas Industrial Workforce
	14	+	Apprenticeship Grant Program.
7	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8		-	SECTION 1. Chapter 302, Labor Code, is amended by adding
9		-	Subchapter I to read as follows:
10		-	SUBCHAPTER I. TEXAS INDUSTRY-RECOGNIZED APPRENTICESHIP PROGRAMS
11		-	GRANT PROGRAM
12		-	Sec. 302.251. PURPOSE. The purpose of the Texas
13		-	Industry-Recognized Apprenticeship Programs Grant Program is to
14		-	address the immediate industrial workforce needs of this state
15		-	resulting from the impact of Hurricane Harvey and overall workforce
16		-	shortages.
17		-	Sec. 302.252. DEFINITIONS. In this subchapter:
18		-	(1) "Industry-recognized apprenticeship program"
19		-	means a training program that:
20		-	(A) provides on-the-job training, preparatory
21		-	instruction, supplementary instruction, or related instruction in
22		-	an occupation that has been recognized as an apprenticeable
23		-	occupation by the Office of Apprenticeship of the United States
24		-	Department of Labor; or
25		-	(B) is certified as an industry-recognized
26		-	apprenticeship program by a third-party certifier that has received
27		-	from the United States Department of Labor a favorable
28		-	determination of qualification to award that certification.
	16	+	SECTION 1. Chapter 481, Government Code, is amended by
	17	+	adding Subchapter EE to read as follows:
	18	+	SUBCHAPTER EE. TEXAS INDUSTRIAL WORKFORCE APPRENTICESHIP GRANT
	19	+	PROGRAM
	20	+	Sec. 481.601. PURPOSE. The purpose of the Texas Industrial
	21	+	Workforce Apprenticeship Grant Program is to address the immediate
	22	+	industrial workforce needs of this state resulting from the impact
	23	+	of Hurricane Harvey and overall workforce shortages.
	24	+	Sec. 481.602. DEFINITIONS. In this subchapter:
	25	+	(1) "Apprenticeship program" means a training program
	26	+	that provides on-the-job training, preparatory instruction,
	27	+	supplementary instruction, or related instruction in a trade that
	28	+	has been recognized as an apprenticeable occupation by the Office
	29	+	of Apprenticeship of the United States Department of Labor.
29	30		(2) "Person" does not include a governmental entity.
30		-	Sec. ~~302~~.~~253~~. PROGRAM. The ~~commission~~ shall establish and
31		-	administer the Texas ~~Industry-Recognized~~ Apprenticeship ~~Programs~~
32		-	~~Grant~~ Program to encourage the private sector to develop
33		-	~~specialized industry-recognized~~ apprenticeship programs in this
34		-	~~state. Under~~ the program, the ~~commission~~ shall ~~award~~ grants to
35		-	~~persons who meet~~ the requirements of Section ~~302~~.~~255~~.
36		-	Sec. ~~302~~.~~254~~. TEXAS ~~INDUSTRY-RECOGNIZED~~ APPRENTICESHIP
37		-	FUND. (a) The Texas ~~industry-recognized~~ apprenticeship fund is a
	31	+	Sec. 481.603. PROGRAM. The office shall establish and
	32	+	administer the Texas Industrial Workforce Apprenticeship Grant
	33	+	Program to encourage the private sector to develop specialized
	34	+	industrial workforce apprenticeship programs in this state. Under
	35	+	the program, the office shall provide grants for persons who meet
	36	+	the requirements of Section 481.605.
	37	+	Sec. 481.604. TEXAS INDUSTRIAL WORKFORCE APPRENTICESHIP
	38	+	FUND. (a) The Texas industrial workforce apprenticeship fund is a
38	39		dedicated account in the general revenue fund.
39	40		(b) The following amounts shall be deposited in the fund:
40	41		(1) money appropriated by the legislature for the fund
41	42		for purposes described by this subchapter;
42	43		(2) interest earned on the investment of money in the
43	44		fund; and
44	45		(3) gifts, grants, and other donations received for
45	46		the fund.
46	47		(c) The fund may be used only for an apprenticeship program
47		-	that meets the requirements of Section 302.255.
48		-	Sec. 302.255. APPLICATION; ELIGIBILITY FOR GRANT. The
49		-	commission shall establish eligibility criteria for a person to
50		-	receive a grant under this subchapter. The eligibility criteria
51		-	must include the requirement that the person:
52		-	(1) apply to the commission in the form and manner
53		-	prescribed by commission rule;
54		-	(2) if the person is an entity, be in good standing
	48	+	that meets the requirements of Section 481.605.
	49	+	Sec. 481.605. APPLICATION; ELIGIBILITY FOR GRANT. To be
	50	+	eligible to receive a grant under this subchapter, a person must:
	51	+	(1) if the person is an entity, be in good standing
55	52		under the laws of the state in which the person was formed or
56	53		organized, as evidenced by a certificate issued by the secretary of
57	54		state or the state official of another state having custody of the
58	55		records pertaining to a person formed or organized under the laws of
59	56		that state;
60		-	(3) not owe delinquent taxes to a taxing unit of this
	57	+	(2) not owe delinquent taxes to a taxing unit of this
61	58		state; and
62		-	(4) operate an industry-recognized apprenticeship
63		-	program that:
	59	+	(3) have in place an apprenticeship program that:
64	60		(A) provides on-the-job training under an
65	61		industry-recognized, accredited training curriculum;
66	62		(B) guarantees employment for participants
67		-	during and on successful completion of the training period;
68		-	(C) pays each participant a wage and provides
69		-	eligibility for participants to receive full-time employee
70		-	benefits during and on successful completion of the training
71		-	period;
	63	+	during and on completion of the training period;
	64	+	(C) provides eligibility for participants to
	65	+	receive full-time employee benefits during and on completion of the
	66	+	training period;
72	67		(D) requires participants to advance their
73		-	skills, at a minimum, to a credentialed~~, performance-verified~~
74		-	~~mid-level status in a~~ field related to the ~~industry-recognized~~
75		-	~~apprenticeship program;~~
76		-	~~(E) has a duration of~~ not more than 26 weeks; and
	68	+	skills, at a minimum, to a credentialed mid-level status in the
	69	+	field related to the apprenticeship program;
	70	+	(E) has a duration of not less than 16 weeks and
	71	+	not more than 26 weeks; and
77	72		(F) gives preference to training and hiring:
78	73		(i) unemployed Texans who have filed with
79		-	the commission;
	74	+	the Texas Workforce Commission;
80	75		(ii) veterans of the United States armed
81	76		forces;
82	77		(iii) formerly incarcerated individuals;
83	78		and
84	79		(iv) underemployed individuals who are
85	80		working without industry-recognized certifications or other
86	81		credentials.
87		-	Sec. 302.256. GRANT AWARD; GRANT AMOUNT. (a) The
88		-	commission may award grants under this subchapter only to reimburse
89		-	an eligible person for the cost of training industry-recognized
90		-	apprenticeship program participants who:
91		-	(1) complete a program operated by the person that
92		-	meets the requirements of Section 302.255(4) having achieved the
93		-	skills level required by Section 302.255(4)(D); and
94		-	(2) maintain suitable employment for at least 12
95		-	consecutive months immediately following completion of the
96		-	program.
97		-	(b) Grant funds awarded to an eligible person under this
98		-	subchapter must be awarded on a per industry-recognized
99		-	apprenticeship program participant basis. The amount of a grant
100		-	awarded to an eligible person for training a participant described
101		-	by Subsection (a) may not exceed the lesser of:
102		-	(1) the total cost to the person for training the
103		-	participant, excluding wages and benefits; or
104		-	(2) $10,000.
105		-	(c) In determining the amount of a grant awarded under this
106		-	subchapter for an industry-recognized apprenticeship program
107		-	participant, the commission may consider the increased economic
108		-	value to the state resulting from or reasonably anticipated to
109		-	result from the participant's completion of the program, including
110		-	by considering any increase or anticipated increase in the amount
111		-	of tax revenue generated by the participant, and any decrease in the
112		-	participant's use of a state-funded benefit, attributable to the
113		-	participant's job placement and earning projections. The
114		-	commission by rule may establish guidelines or formulas for
115		-	determining an increase in economic value to the state attributable
116		-	to a participant's program completion for purposes of this
117		-	subsection.
118		-	(d) The commission by rule may establish limitations on the
119		-	total amount of grant funds that a person may be awarded under this
120		-	subchapter.
121		-	Sec. 302.257. PROGRAM RULES. (a) The commission shall
122		-	adopt rules to administer and enforce this subchapter.
123		-	(b) The commission shall post the rules on its Internet
124		-	website.
125		-	Sec. 302.258. ANNUAL REPORT. (a) Not later than December 1
126		-	of each year, the commission shall submit to the lieutenant
127		-	governor, the speaker of the house of representatives, and the
128		-	members of the legislature a report on grants made under this
129		-	subchapter that states:
	82	+	Sec. 481.606. LIMITATIONS ON GRANT AMOUNT AND USE. The
	83	+	amount of a grant awarded under this subchapter may not exceed
	84	+	$10,000 per apprenticeship program participant and may be used only
	85	+	to reimburse the cost of training, not including wages and
	86	+	benefits.
	87	+	Sec. 481.607. REQUIREMENTS; GRANT AWARD. (a) The office
	88	+	shall distribute the grant funds as a reimbursement for training
	89	+	costs incurred by grant recipients in accordance with Section
	90	+	481.606.
	91	+	(b) Before awarding a grant to a person under this
	92	+	subchapter, the office must determine that a sufficient number of
	93	+	apprenticeship program participants have:
	94	+	(1) completed the program and achieved the training
	95	+	requirements specified by Section 481.605(3)(D); and
	96	+	(2) maintained available and suitable employment for a
	97	+	period of not less than six months cumulatively after completion of
	98	+	the apprenticeship program.
	99	+	(c) The executive director by rule may develop the criteria
	100	+	for making the determinations required by Subsection (b).
	101	+	Sec. 481.608. PROGRAM RULES. (a) The executive director
	102	+	shall adopt rules to administer and enforce this subchapter.
	103	+	(b) The office shall post the rules on its Internet website.
	104	+	Sec. 481.609. ANNUAL REPORT. (a) Not later than December 1
	105	+	of each year, the office shall submit to the lieutenant governor,
	106	+	the speaker of the house of representatives, and the members of the
	107	+	legislature a report on grants made under this subchapter that
	108	+	states:
130	109		(1) the number of direct jobs each grant recipient
131	110		created in this state in each job category of the federal Equal
132	111		Employment Opportunity Commission's job classification guide;
133	112		(2) the median wage of the jobs each grant recipient
134	113		created in this state;
135	114		(3) the total amount of each grant awarded to a grant
136		-	recipient;
137		-	(4) the number and categorization of
138		-	industry-recognized apprenticeship program participants trained
139		-	and employed by each grant recipient under Section 302.255(4)(F);
140		-	(5) a determination of whether the grant program
141		-	administered under this subchapter has resulted in a positive
142		-	return on investment to the state and an explanation of the methods
143		-	used by the commission in making that determination; and
144		-	(6) if the commission considers it appropriate and
145		-	feasible, a list of recommendations for legislative or other
146		-	changes to the grant program administered under this subchapter to
147		-	increase the return on investment to the state.
	115	+	recipient; and
	116	+	(4) the number and categorization of apprenticeship
	117	+	program participants trained and employed by each grant recipient
	118	+	under Section 481.605(3)(F).
148	119		(b) The report may not include information that is made
149	120		confidential by law.
150		-	(c) The commission may require a grant recipient under this
151		-	subchapter to submit, on a form provided by the commission,
152		-	information required to complete the report.
153		-	(d) The commission shall post the annual report on its
154		-	Internet website.
155		-	SECTION 2. The Texas Workforce Commission is required to
156		-	implement a provision of this Act only if the legislature
157		-	appropriates money specifically for that purpose. If the
158		-	legislature does not appropriate money specifically for that
159		-	purpose, the Texas Workforce Commission may, but is not required
160		-	to, implement a provision of this Act using other appropriations
161		-	available for that purpose.
162		-	SECTION 3. This Act takes effect September 1, 2019.
163		-	______________________________ ______________________________
164		-	President of the Senate Speaker of the House
165		-	I certify that H.B. No. 2784 was passed by the House on May
166		-	10, 2019, by the following vote: Yeas 117, Nays 16, 1 present, not
167		-	voting; and that the House concurred in Senate amendments to H.B.
168		-	No. 2784 on May 24, 2019, by the following vote: Yeas 119, Nays 23,
169		-	2 present, not voting.
170		-	______________________________
171		-	Chief Clerk of the House
172		-	I certify that H.B. No. 2784 was passed by the Senate, with
173		-	amendments, on May 22, 2019, by the following vote: Yeas 27, Nays
174		-	4.
175		-	______________________________
176		-	Secretary of the Senate
177		-	APPROVED: __________________
178		-	Date
179		-	__________________
180		-	Governor
	121	+	(c) The office may require a grant recipient under this
	122	+	subchapter to submit, on a form provided by the office, information
	123	+	required to complete the report.
	124	+	(d) The office shall post the annual report on its Internet
	125	+	website.
	126	+	SECTION 2. This Act takes effect September 1, 2019.
	127	+	* * * * *