HBA-NLM H.B. 2401 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2401
By: Keffer
Economic Development
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

The Education Code allows 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)  Requires a certified
program to be conducted under a signed written agreement between each
participant and the employer. Specifies that the agreement must 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 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;  

(4)  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; 

(5)  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; and 

(6)  the employer's agreement to pay the participant during the period
described by Subdivision (5) at least the prevailing wage for employees
performing similar work and to provide other employee benefits to which
employees performing similar work are entitled.  

(b)  Provides that the money held in trust under Subsection (a)(4) 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 for the benefit of the participant satisfies the requirement
of this subsection.  Provides that the fund must be specified in the
agreement.  

(c)  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 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.  (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 3. Emergency clause.