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.