HBA-NLM C.S.H.B. 2401 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2401 By: Keffer Economic Development 4/15/1999 Committee Report (Substituted) 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. C.S.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 may 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; (b) Prohibits a participant's time spent in a program under Subsection (a) from exceeding 15 hours a week, without regard to whether the participant is paid for the time. (c) Provides that a participant may, but is not required to, enter into a postsecondary education agreement with the participant's employer. Provides that an agreement under this subsection must include: (1) 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; (2) 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; (3) the employer's agreement to pay the participant during the period described by Subdivision (2) at least the prevailing wage for employees performing similar work and to provide other employee benefits to which employees performing similar work are entitled; and (4) the participant's agreement to reimburse the employer if the participant fails to perform the two years of employment described by Subdivision (2) for the employer's contribution to the trust established under Subdivision (1), plus interest at the prime interest rate at the time the participant defaults on the agreement. (d) Requires the participant and employer each to be refunded their respective contributions to the trust established under Subsection (c)(1) and a pro rata share of the interest earned on the money in the trust, not later that the 30th day after the last date of participation in the program, if a participant decides not to continue in the program before beginning the participant's postsecondary education. (e) Provides that the money held in trust under Subsection (c)(1) 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. (f) 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. Amends Chapter 61, Education Code, by adding Subchapter T, as follows: SUBCHAPTER T. TECH-PREP EDUCATION Sec. 61.851. DEFINITIONS. Defines "articulation agreement," "division," "junior college," "tech-prep consortium," and "technical college." Sec. 61.852. TECH-PREP PROGRAM. Describes the program of study for a tech-prep program. Provides that a tech-prep consortium is encouraged to include four years of secondary education in a tech-prep program, notwithstanding other provision of this section. Sec. 61.853. REGIONAL TECH-PREP CONSORTIA: GOVERNING BOARD; DIRECTOR; FISCAL AGENT. (a) Provides that each regional tech-prep consortium is governed by a governing board composed of private sector and public sector leaders in the ratio agreed by the participants in the consortium. (b) Requires the governing board to determine the policies of the tech-prep program. (c) Requires the governing board to select a consortium director to manage the consortium's affairs. Provides that the consortium director serves at the will of the governing board. (d) Requires the governing board to select one of a variety of entities to act as the techprep consortium's fiscal agent and to provide human resource and business office services for the consortium. Provides that the fiscal agent serves at the direction of the governing board and under the terms of an agreement between the governing board and the fiscal agent. Sec. 61.854. TECH-PREP CONSORTIUM ALLOTMENT. (a) Requires the division, as the agent of the Texas Education Agency, to allot the federal tech-prep implementation, in each fiscal year, money this state receives to the regional tech-prep consortia for regional administration according to regionally developed plans designed to meet regional goals. Sets forth the manner in which the division is required to allot the money. (b) Provides that an eligible tech-prep consortium that desires assistance under this section must submit an application to the division in the manner provided. (c) Requires the division to make a payment in the specified amount if a tech-prep consortium has a completed application on file under Subsection (b). Sec. 61.855. GRANTS FOR TECH-PREP EDUCATION. Requires the division to award grants to tech-prep consortia for tech-prep programs described by this section. Sets forth the required composition of a tech-prep consortium to be eligible for a grant. Provides that a tech-prep program must include specified programs, provide specified services, and meet certain requirements. Provides that a tech-prep consortium that receives a grant under this section must use the money awarded to develop and operate a tech-prep program described by this section. Authorizes a tech-prep program to provide for the acquisition of tech-prep program equipment, acquire technical assistance from certain state or local entities, and establish articulation agreements with certain entities. Sec. 61.856. GRANT APPLICATION. Provides that each regional tech-prep consortium that desires to obtain a grant under this subchapter must submit an application to the division at the time and in the manner the division prescribes. Specifies that an application under this section must contain certain information. Requires the division to approve the application if the application meets the requirements of this section and Section 61.854(b). Requires the division to give special consideration to certain applications for a tech-prep program. Requires the division to ensure an equitable distribution of assistance between urban and regional consortium participants in awarding grants under this subchapter. Sec. 61.857. REPORT; REVIEW OF FIVE-YEAR PLAN. Requires each regional techprep consortium that receives a grant under this subchapter to annually prepare and submit to the division a written report on the effectiveness of the programs. Provides that the report must include a description of the manner in which the consortium awarded any subgrants in the region served by the consortium. Requires the consortium to review the plan and make any changes necessary, after the second year of the five-year plan. Sec. 61.858. DEMONSTRATION PROGRAMS. Authorizes the division, each fiscal year, to award grants from funds appropriated for the purpose, to regional tech-prep consortia described by Section 61.855 to enable the consortia to establish and implement tech-prep demonstration programs. Provides that a tech-prep demonstration program under this section: _must involve the location of a secondary school on the site of a junior college; _must involve a business as a participant; _must include the voluntary participation of secondary school students in the program; and _may provide summer internships at a business for students or teachers. Provides that a regional tech-prep consortium that desires to obtain a grant under this section must submit an application, containing the information required by this board, to the division at the time and in the manner the division prescribes. Provides that a tech-prep demonstration program must include specified programs, provide specified services, and meet certain requirements. Requires the division to give special consideration to certain applications for a tech-prep demonstration program. SECTION 3. (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 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2401 modifies the original in SECTION 1 (proposed Section 311.003, Labor Code) by setting out information that may be, rather than must be included, in a certified program agreement. The substitute modifies the original in this section by adding new Subsection (b) to prohibit a participant's time spent in a program under Subsection (a) from exceeding 15 hours a week, without regard to whether the participant is paid for the time. C.S.H.B. 2401 modifies the original in SECTION 1 (proposed Section 311.003, Labor Code) by adding new Subsection (c) to provide that a participant may, but is not required to, enter into a postsecondary education agreement with the participant's employer. The substitute redesignates proposed Subdivisions (4)-(6) of Subsection (a) of the original to new Subdivisions (1)-(3) of Subsection (c) in the substitute. C.S.H.B. 2401 modifies the original in SECTION 1 (proposed Section 311.003, Labor Code) by adding new Subsection (d) to require the participant and employer each to be refunded their respective contributions to the trust established under Subsection (c)(1) and a pro rata share of the interest earned on the money in the trust, not later that the 30th day after the last date of participation in the program, if a participant decides not to continue in the program before beginning the participant's postsecondary education. C.S.H.B. 2401 modifies the original in SECTION 1 (proposed Section 311.003, Labor Code) by redesignating proposed Subsections (b) and (c) to new Subsections (e) and (f). C.S.H.B. 2401 modifies the original by adding a new SECTION 2 (Chapter 61, Education Code), to include Subchapter T, as follows: SUBCHAPTER T. TECH-PREP EDUCATION Sec. 61.851. DEFINITIONS. Defines "articulation agreement," "division," "junior college," "tech-prep consortium," and "technical college." Sec. 61.852. TECH-PREP PROGRAM. Describes the program of study for a tech-prep program. Provides that a tech-prep consortium is encouraged to include four years of secondary education in a tech-prep program, notwithstanding other provision of this section. Sec. 61.853. REGIONAL TECH-PREP CONSORTIA: GOVERNING BOARD; DIRECTOR; FISCAL AGENT. (a) Provides that each regional tech-prep consortium is governed by a governing board composed of private sector and public sector leaders in the ratio agreed by the participants in the consortium. (b) Requires the governing board to determine the policies of the tech-prep program. (c) Requires the governing board to select a consortium director to manage the consortium's affairs. Provides that the consortium director serves at the will of the governing board. (d) Requires the governing board to select one of a variety of entities to act as the techprep consortium's fiscal agent and to provide human resource and business office services for the consortium. Provides that the fiscal agent serves at the direction of the governing board and under the terms of an agreement between the governing board and the fiscal agent. Sec. 61.854. TECH-PREP CONSORTIUM ALLOTMENT. (a) Requires the division, as the agent of the Texas Education Agency, to allot the federal tech-prep implementation, in each fiscal year, money this state receives to the regional tech-prep consortia for regional administration according to regionally developed plans designed to meet regional goals. Sets forth the manner in which the division is required to allot the money. (b) Provides that an eligible tech-prep consortium that desires assistance under this section must submit an application to the division in the manner provided. (c) Requires the division to make a payment in the specified amount if a tech-prep consortium has a completed application on file under Subsection (b). Sec. 61.855. GRANTS FOR TECH-PREP EDUCATION. Requires the division to award grants to tech-prep consortia for tech-prep programs described by this section. Sets forth the required composition of a tech-prep consortium to be eligible for a grant. Provides that a tech-prep program must include specified programs, provide specified services, and meet certain requirements. Provides that a tech-prep consortium that receives a grant under this section must use the money awarded to develop and operate a tech-prep program described by this section. Authorizes a tech-prep program to provide for the acquisition of tech-prep program equipment, acquire technical assistance from certain state or local entities, and establish articulation agreements with certain entities. Sec. 61.856. GRANT APPLICATION. Provides that each regional tech-prep consortium that desires to obtain a grant under this subchapter must submit an application to the division at the time and in the manner the division prescribes. Specifies that an application under this section must contain certain information. Requires the division to approve the application if the application meets the requirements of this section and Section 61.854(b). Requires the division to give special consideration to certain applications for a tech-prep program. Requires the division to ensure an equitable distribution of assistance between urban and regional consortium participants in awarding grants under this subchapter. Sec. 61.857. REPORT; REVIEW OF FIVE-YEAR PLAN. Requires each regional techprep consortium that receives a grant under this subchapter to annually prepare and submit to the division a written report on the effectiveness of the programs. Provides that the report must include a description of the manner in which the consortium awarded any subgrants in the region served by the consortium. Requires the consortium to review the plan and make any changes necessary, after the second year of the five-year plan. Sec. 61.858. DEMONSTRATION PROGRAMS. Authorizes the division, each fiscal year, to award grants from funds appropriated for the purpose, to regional tech-prep consortia described by Section 61.855 to enable the consortia to establish and implement tech-prep demonstration programs. Provides that a tech-prep demonstration program under this section: _must involve the location of a secondary school on the site of a junior college; _must involve a business as a participant; _must include the voluntary participation of secondary school students in the program; and _may provide summer internships at a business for students or teachers. Provides that a regional tech-prep consortium that desires to obtain a grant under this section must submit an application, containing the information required by this board, to the division at the time and in the manner the division prescribes. Provides that a tech-prep demonstration program must include specified programs, provide specified services, and meet certain requirements. Requires the division to give special consideration to certain applications for a tech-prep demonstration program. C.S.H.B. 2401 redesignates SECTIONS 2 and 3 (effective date, emergency clause) of the original to SECTIONS 3 and 4 in the substitute.