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.