The Texas Workforce Commission (Commission) proposes amendments to §§841.31, 841.32, 841.34, 841.38, 841.39, 841.41, 841.44, and 841.46 and proposes the repeal of and new §§841.40, 841.43, 841.45, and 841.47 regarding the Eligible Training Provider Certification System (ETPS) required under the Workforce Investment Act of 1998.

The 74th Texas Legislature and the Governor enacted Texas' landmark legislation, House Bill 1863 (H.B. 1863), in 1995, now codified in part in Texas Labor Code Chapter 302 and Texas Government Code Chapter 2308. This state law reformed both the welfare and workforce systems and made Texas the nation's leader among reform-minded states. H.B. 1863 provided local elected officials the opportunity to form local workforce development boards (Boards) that enjoy the flexibility and authority to design and oversee the delivery of workforce development services that meet the needs of local employers and workers.

A key goal of the federal Workforce Investment Act (WIA) of 1998 (42 U.S.C.A. Section 2801 et seq.) was that of improving the effectiveness and efficiency of federally-funded job training programs. WIA recognized the strides made in the Texas workforce development system and specifically provided for the state to maintain many of the features of H.B. 1863.

The Commission, as the entity responsible for overseeing the implementation of WIA, has endeavored to provide formal and informal opportunities for comment and input by all interested parties. While developing the ETPS, the Commission has continued to work closely with representatives of the training provider community, Boards and partner agencies. The Commission ensures compliance with the WIA while providing options for the Boards and the training provider community. The Commission continues to seek options for streamlining processes, including those for the certification process and for performance reporting by eligible training providers. A key objective is to maximize participant access to education and training options, while minimizing providers' reporting burdens.

The purpose of Subchapter C is to address the ETPS as required under the Act. Changes are proposed for the purposes of streamlining the ETPS, reflecting changes necessitated by the implementation of the automated, Internet-based ETPS and to allow Boards discretion to permit the ETPS and the use of Individual Training Accounts (ITAs) to apply to other workforce services funded through the Commission. In addition to the proposed changes, the Commission invites the public to comment on methods to simplify the ETPS. The language in many of the sections remains the same with the following exceptions:

Section 841.31 addresses the scope and coverage of this subchapter. The ETPS and the use of ITAs to secure and pay for adult training services are primary service delivery mechanisms under the WIA. A sentence is added that acknowledges the Boards' option to use these mechanisms for adult training services funded by Choices, Food Stamp Employment and Training (FS E&T), Welfare-to-Work (WtW), Trade Adjustment Assistance (TAA) and North American Free Trade Agreement-Transitional Adjustment Assistance (NAFTA-TAA).

Section 841.32 addresses training services. The changes to the language include adding a sentence to subsection (a) that acknowledges the expanded coverage of the rule to cover adult training services funded by Choices, FS E&T, WtW, TAA and NAFTA-TAA.

Section 841.34 addresses ITAs. The changes include adding a subsection (c) that acknowledges the expanded coverage of the rule to cover adult training services funded by Choices, FS E&T, WtW, TAA and NAFTA-TAA.

Section 841.38 addresses the initial certification process for exempt providers. A change is made in the first sentence to clarify Board responsibilities for developing local requirements, rather than a written application, for the submission of initial eligibility applications for exempt programs.

Section 841.39 addresses the alternative application for initial eligibility determination by non-exempt training providers. Changes are made to subsection (b) to address modifications in application requirements due to conversion to the automated, Internet-based ETPS and to specify the exemption of providers that are subject to Texas or another state's regulation or audit from the requirement to submit financial stability documentation. Changes are also made to subsection (c) to remove the requirement that training provider applicants provide performance information regarding the percentage of all individuals participating in the applicable program who obtained unsubsidized employment in an occupation related to the program conducted.

Section 841.40 addresses the submission of an initial eligibility application. Language is added to address the required use of the automated, Internet-based ETPS for application submission and review and to address provider compliance with state law.

Section 841.41 addresses initial eligibility determination. Language in subsection (b) related to a mandatory six-month waiting period for reapplication after Board denial of an initial eligibility application is deleted in order to provide additional flexibility with regard to the development of local appeals policy.

Section 841.43 addresses application for subsequent eligibility determination. The option to request a specific certification date is removed since it is not applicable to the subsequent eligibility determination process. Language is added to address the required use of the automated, Internet-based ETPS for application submission and review and to address provider compliance with state law. Language is added to allow for adjusting the certification renewal period if an appeal is approved to ensure that the period of certification is one year in length.

Section 841.44 addresses the determination of subsequent eligibility. In subsection (e) language related to a mandatory six-month waiting period for reapplication after Board denial of an initial eligibility application is deleted in order to provide additional flexibility with regard to the development of local appeals policy.

Section 841.45 addresses the annual adoption of standards of performance. Changes are made to clarify the process for annual adoption and issuance of performance standards.

Section 841.46 addresses the requirements for submission and retention of verifiable program-specific performance information. The requirement that performance information be submitted on a quarterly basis is deleted since submission of required data is not subject to this stringent timeline and the subsections are re-lettered accordingly.

Section 841.47 addresses the certified provider list and the name is modified to reflect that the training provider list includes "eligible" training providers. Language related to Board submission of certified provider lists, and applicable performance and cost data, is deleted to reflect process changes related to the conversion to the automated, Internet-based ETPS. The remaining subsections are re-lettered accordingly.

The remaining rules in Subchapter C, §841.48 and §841.49, contain no changes to the prior rules.

Randy Townsend, Chief Financial Officer, has determined that for the first five years the rules are in effect, the following statements will apply:

there are no additional estimated costs to the state and to local governments expected as a result of enforcing or administering the rules;

there are no estimated reductions in costs to the state or to local governments expected as a result of enforcing or administering the rules;

there are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rules;

there are no foreseeable implications relating to costs or revenues to the state or to local governments as a result of enforcing or administering the rules; and

there are no anticipated costs to persons who are required to comply with the rules as proposed.

Mr. Townsend has also determined that there is no anticipated adverse impact on small businesses as a result of enforcing or administering these rules because any regulatory burdens or impact on small businesses (including micro-businesses) as well as foreseeable adverse economic effects or costs, if any, would be a result of federal statute and regulations, which are the basis for these proposed rules, and second, as far as can be determined, small businesses (including micro-businesses) are not required to do anything as a result of these rules that is not required to receive WIA funding for training. In the event that a Board, Board's contractor, or a subrecipient of the Agency is required to expend funds as a result of applying for the training provider certification, the expense may in part or whole be covered by the grant. Likewise, the expenses may be larger for larger entities and smaller for smaller entities but proportionate to the amount of training activities provided and for which certification is sought.

Barbara Cigainero, Director of Workforce Development, has determined that for each year of the first five years that the rules will be in effect the public benefit anticipated as a result of the adoption of the proposed rules will be to improve and simplify for consumers the ETPS; maintain sufficient provisions to meet state requirements; ensure efficient use of funds to meet the needs of employers, job seekers, and the training provider community; and strengthen the relationship among the Commission, the Boards and training providers in developing a seamless network of services.

James Barnes, Director of Labor Market Information, has determined that there is no foreseeable negative impact upon employment conditions in this state as a result of these proposed rules.

Comments on the proposed sections may be submitted to John Moore, Texas Workforce Commission, 101 East 15th Street, Room 608, Austin, Texas 78778; fax number (512) 463-1426; or e-mail to john.moore@twc.state.tx.us. Comments must be received by the Agency no later than 30 days from the date this proposal is published in the Texas Register .

Subchapter C. ELIGIBLE TRAINING PROVIDER CERTIFICATION