Part 20.
TEXAS WORKFORCE COMMISSION
Chapter 835.
SELF-SUFFICIENCY FUND
The Texas Workforce Commission (Commission) adopts the repeal of Chapter
835, Subchapter A, General Provisions Regarding the Self-Sufficiency Fund, §§835.1-835.4;
Subchapter B, Project Administration, §§835.11-835.15; Subchapter
C, Project Administration After Award of Contract, §§835.31-835.33;
and new Chapter 835, Subchapter A, General Provisions Regarding the Self-Sufficiency
Fund, §§835.1-835.4; Subchapter B, Project Administration, §§835.11-835.14;
and Subchapter C, Project Administration after Award of Contract, §§835.31-835.34,
without changes as published in the September 13, 2002 issue of the
The purpose of the adopted rules is to interpret and administer Texas Labor
Code, Chapter 309, relating to the operation of the Self-Sufficiency Fund.
Part of the Commission's innovative system of workforce training and services
throughout the State of Texas is the Self-Sufficiency Fund. One of the primary
goals of the Commission is to meet the needs of Texas employers for the development
of a highly skilled and productive workforce. As a part of this goal, the
Commission strives to prepare, place and retain individuals in employment,
and meet the needs of workers of this state for education and skills. More
specifically, the Commission is directed to assist individuals in making the
transition into the workforce from public assistance; thus, it is a goal for
the Commission that all participants entering a customized job training project
under the Self-Sufficiency Fund successfully complete the project and be self-sufficient.
The 75th Legislature directed the Commission to develop a self-sufficiency
program to work with employers and education organizations to provide customized
job training for targeted employment of adult Temporary Assistance for Needy
Families (TANF) recipients as a strategy to increase long-term success in
retention of employment by those individuals. Furthermore, based on the passage
of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA)
enacted in 1996 and federal regulations issued by the Administration for Children
and Families (ACF), the Commission continues its intent to make the Self-Sufficiency
Fund available to people who are at risk of becoming dependent on public assistance.
While eligibility for Self-Sufficiency Fund services is open to adult TANF
recipients as well as individuals who are at risk of becoming dependent on
public assistance, the first priority of the Self-Sufficiency Fund is to assist
current adult TANF recipients in obtaining the education and skills necessary
to enter employment and become independent of public assistance.
As a workforce training tool, the goal of the Self-Sufficiency Fund is
to help these adults obtain the education and skills necessary to enter employment
and become independent of public assistance by providing customized job training
for specific employers. Furthermore, the Commission intends that the Self-Sufficiency
Fund should be available to help low income families with children avoid the
risk of becoming dependent on public assistance, as well as assist in making
the transition from public assistance into the workforce. Teaming the business
community with education organizations to fund customized job training for
adult TANF recipients and other adults at risk of becoming dependent on public
assistance, this fund successfully merges employer needs and local job training
opportunities into a winning formula for putting people to work and expanding
the local workforce and economic base.
As an opportunity to expand a local workforce and economic base, and as
a source of workforce development funds provided to a local workforce development
area, the Commission encourages employers and education organizations to collaborate
with the Local Workforce Development Boards (the Boards) when creating Self-Sufficiency
Fund proposals. Though the Boards are the architects of local workforce development
policy, the Boards also have invaluable economic development expertise and
resources beneficial to creating a proposal or implementing customized job
training. Furthermore, with priority given to proposals containing evidence
of established referral procedures and agreements and the Boards and their
contractors being a core source of referrals for Self-Sufficiency Fund training,
strengthening the relationship with the Boards quickly connects adult TANF
recipients and other adults at risk of becoming dependent on public assistance
with needed education and skills, prompting transition into workforce and
attaining self-sufficiency.
The new rules incorporate substantially all of the requirements currently
contained in Chapter 835, which is concurrently adopted for repeal. However,
because of the extensive nature of the changes, the Commission proposes the
repeal of the current rules and proposes new rules. The new rules describe
the operation of the Self-Sufficiency Fund. The new rules are updated to reflect
current workforce development philosophy and policy, strengthen accountability
of the grant recipients, encourage collaboration with the Boards, enhance
administrative efficiency of the fund, and provide clarity throughout Chapter
835. Some of the nonsubstantive changes include minor typographical edits
and changes in terminology in line with the definitions set out in Chapter
800 distinguishing Commission from Agency. The purpose and goal of the Self-Sufficiency
Fund is to aid in the transition of adult TANF recipients and other adults
at risk of becoming dependent on public assistance to the workforce through
the development of customized job training plans and necessary support services.
The fund will provide customized job training for adult TANF recipients through
projects throughout the state to assist the Boards in meeting contracted Choices
performance measures. The rules describe the procedure to be used in making
an application for a Self-Sufficiency Fund award, in evaluating the proposals
submitted, enumerate responsibilities of a grant recipient, and list requirements
that a grant recipient must be meet in order to obtain payment on a Self-Sufficiency
Fund contract. A document reflecting the new rules may be viewed at www.twc.state.tx.us/twcinfo/rules/prorules.html,
or requested by contacting Kathy Turney at (512) 936-9256, faxing (512) 463-2672,
e-mailing Kathy.Turney@twc.state.tx.us, or writing to the Texas Workforce
Commission, 101 East 15th Street, Room 526-T, Austin, Texas, 78778-0001.
Subchapter A contains §§835.1-835.4 and sets out the general
provisions relating to the purpose and goal, definitions, uses of the fund,
and waivers.
Specifically, the purposes of the sections contained in Subchapter A are
as follows.
Section 835.1 sets out the scope and purpose of the Self-Sufficiency Fund.
Changes from the repealed rules clarify that adult TANF recipients are targeted
for customized job training. The remainder of Chapter 835 is edited to reflect
this clarification. The statutory cites are updated to reflect changes made
in prior legislative sessions.
Section 835.2 sets out the definitions. Some of the definitions, such as
customized job training project, private partner, and training provider, are
edited for clarity within the rule and to enhance administrative efficiency
of the fund. Clarifications of these definitions are reflected throughout
the remainder of the chapter where applicable. The term "Director" is simplified
to allow the reader to understand clearly when the Executive Director's duties
can be delegated and not delegated to a designee, and this clarification is
reflected throughout the remainder of the chapter where applicable. The definition
of individual at risk of becoming dependent on public assistance is expanded
to include individuals referred to a Board contractor by the Texas Department
of Human Services to attend a Workforce Orientation for Applicants session,
which is a TANF eligibility requirement. Individuals referred to the Workforce
Orientation are not yet TANF recipients, but are considered individuals at
risk of becoming dependent on public assistance because the individuals are
seeking TANF benefits. Statutory cites are updated to reflect changes made
in prior legislative sessions. A definition for state extension service is
added and the Texas Engineering Extension Service (TEEX) is properly defined
to accurately reflect the statute, and the remainder of Chapter 835 is edited
to distinguish between TEEX and state extension service where applicable.
Section 835.3 sets out uses of the Self-Sufficiency Fund. Changes made
provide clarity to the rule, enhance administrative efficiency of the fund,
and strengthen the goal of the fund by adding language addressing intent to
expand the workforce.
Section 835.4 sets out waivers. Edits are made for clarity of the rule.
Subchapter B contains §§835.11-835.15 and sets out the provisions
relating to program administration.
Section 835.11 sets out the project objectives. Edits clarify that adult
TANF recipients are targeted for customized job training through projects
throughout the state to assist the Boards in meeting contracted Choices performance
measures. Furthermore, some of the objectives from the repealed rules are
merged together into one objective for clarity and to streamline the objectives,
and new objectives are added to update the rules to reflect current workforce
development philosophy and policy, such as consideration of Texas' employer
needs for customized job training. One of the new objectives addresses the
development of projects that will create jobs in local workforce development
areas through the collaboration with the Boards. As the Commission's partners
in workforce training and service delivery, the Boards are the architect of
local workforce development policy and have the essential expertise and resources
to address local economic development issues. The Commission believes that
Board involvement is essential to the success of Self-Sufficiency Fund training
because the Boards and their contractors are the central point of referrals
of potential adult TANF recipients to be served, assist employers in meeting
their needs, or other local reasons. Another new objective addresses collaboration
with Board contractors, one-stop centers, or other entities to establish referrals
of eligible trainees, which is added to emphasize the relationship between
eligible referrals to training and overall success of a training project.
Other objectives added are as follows: training that will lead to employment
benefits, including medical insurance; ensure job retention by providing retraining
in response to new or changing technology; develop projects that include contributions
from other sources; training that results in enhanced worker skills and positive
economic impact for the local community; and ensure expansion of the state's
capacity to respond to workforce training needs. Edits made to this section
will also enhance the administrative efficiency of the fund.
Section 835.12 sets out the grant administration. Edits bring the rule
in line with definitions set out in Chapter 800 that distinguish Agency and
Commission. Other edits are made for clarity of the rules under Chapter 835.
Section 835.13 sets out the limitations on awards. Edits bring the rule
in line with definitions set out in Chapter 800 that distinguish between Agency
and Commission. A new provision increases the cap on administrative costs
to 15% for training projects that involve more than a single employer. The
edits reflect an update if workforce development philosophy and policy and
enhance the administrative efficiency of the fund.
Section 835.14 sets out the procedures for requesting Self-Sufficiency
Funding. Subsection (a) is edited to clarify that Boards in the applicable
local workforce development area must have the opportunity to review and provide
comments about a proposal, and that any review and comment obtained by the
private partner and education organizations would be part of the proposal
submission to the Agency. Subsection (a) is clarified to reflect that the
private partner, education organization and, if applicable, any other training
provider present the joint proposal to the Agency. The Self-Sufficiency Fund
is a vital source of customized job training funds, and because the Boards
are the architects of local workforce development policy, the Boards should
have the opportunity to be informed about and respond to any workforce training
that might come into a local workforce development area. As an essential resource
on local workforce development policy, collaborating with the Boards will
bring employers and education organizations closer to achieving intended training
goals. Under the new subsection (b), the proposal must contain evidence of
established referral procedures or agreements with Board contractors, one-stop
centers, or other entities for referral of eligible trainees. The purpose
of this requirement reassures the Commission that the education organization,
private partner and training provider have secured a means to obtain referrals
of eligible trainees for the proposed training project, which could enhance
the success of the training project. Other changes made to Section 835.14
clarify the rules, strengthen the employer's and education organization's
commitment to recruit eligible trainees, describe measurable training objectives
and outcomes, address equal opportunity employment policy, outline the respective
roles and responsibilities of employers and education organizations under
a signed agreement, and overall enhance the administrative efficiency of the
fund.
Section 835.15 sets out the procedures for proposal evaluation. Edits clarify
the rules, bring the rules in line with Chapter 800 definitions distinguishing
Agency and Commission, and enhance the administrative efficiency of the fund.
An added subsection establishes the notification of Boards when the Agency
is evaluating a proposal in order to keep the Boards informed about potential
workforce activities in a local workforce development area. Subsection (d)
is adopted with a technical change that removes "on behalf of the Agency"
because this phrase is superfluous.
Subchapter C contains §§835.31-835.36 and sets out the provisions
relating to program administration after an award of a training contract.
Section 835.31 sets out the grant recipient responsibilities. The adopted
new subsection (a) requires a grant recipient administer the contract and
submit financial and performance reports to the Agency on a quarterly basis
based on the commencement date of the contract. Other changes are made to
clarify the rules. Two new subsections strengthen the contractual obligations
of the grant recipient, bring the rule up to date with current contract monitoring
procedures, require the grant recipient to submit all reports in electronic
format unless otherwise approved, and overall enhance the administrative efficiency
of the fund.
Section 835.32 sets out the provisions for contract completion reports.
Edits provide clarity to the rule, bring the terminology in line with definitions
set out in Chapter 800, and enhance the administrative efficiency of the fund.
The time frame to submit final reports is reduced from 90 days to 60 days
following the end of the contract period to accelerate the closeout process.
Edits in Subsection (5) addressing payroll records and reports provide the
grant recipient greater flexibility with regard to obtaining trainee wage
information from the employer participating in the customized job training.
Section 835.33 sets out the contract payment provisions. The provisions
are edited to provide clarity on how the final payment will be completed,
specifying that final payment of the awarded funds will be withheld for 60
days after the completion of customized job training and after receipt by
the Agency of verification that trainees are employed in jobs leading to self-sufficiency.
This subsection also states that the Executive Director may allow an attrition
rate of 15% based on the total number of trainees as outlined in the contract.
The changes enhance the administrative efficiency of the fund.
Section 835.34 is a new section that details when the Agency will send
a Board notification of Self-Sufficiency grants awarded in the Board's local
workforce development area. The rule is added to update the rule to reflect
current workforce development philosophy and policy with regard to the role
of the Boards. The new rule will also enhance administrative efficiency of
the funds, and allow the Boards to be informed about training funding invested
by the Commission in a local workforce development area.
Comments were received from the North Central Texas Workforce Development
Board and from the Texas Health and Human Services Commission.
The comment summaries and responses are as follows.
Comment: One commenter was thankful for the opportunity to review the rules,
but had no comments.
Response: The Commission is appreciative of the comments.
Comment: One commenter stated that the proposed rule changes have come
a long way to integrate the Self-Sufficiency Fund program into the local workforce
networks, though the commenter emphasized the need to solidify how communication
and collaboration between employers, education organizations, and the Boards
will take place.
Response: The Commission is appreciative of the comments recognizing the
Commission's integration of the Self-Sufficiency Fund program into the local
workforce network. The Commission agrees that more collaboration and coordination
with the Boards is essential, and encourages employers, education organizations,
and the Boards to coordinate with one another in forging relationships to
address local workforce and economic development goals and needs. The Commission
disagrees with imposing requirements in the rules to force these local partners
into working relationships, rather the local partners should foster productive
relationships as part of their goal in meeting the workforce and economic
development needs of the workforce area.
Comment: Regarding §835.11(3), one commenter felt that the Self-Sufficiency
Fund program should be devolved to the Boards because of the Boards' infrastructure
and ability to serve Choices clients; its strong ties between local workforce
centers and employers; and its daily relationship with the local population.
Response: The Commission recognizes the need for the Boards to have visibility
and flexibility regarding their role in planning and implementing economic
and workforce development policy in a local workforce area, and the rules
succeed in closer aligning the Boards, employers, and education organizations
regarding Self-Sufficiency Fund training. However, the Commission disagrees
with the commenter's suggestion of transitioning the Self-Sufficiency Fund
program to the Boards at this time. There are unique opportunities that present
themselves at the State level or at companies with locations in more than
one workforce area, and the Commission does not want to limit its flexibility
in responding to requests from those entities for training funds. In addition,
the Commission has taken steps this year through the Workforce Investment
Act (WIA) alternative funding mechanism to ensure that Boards have flexible
funding to be used for employer's emergent needs and customized training projects.
The Commission has also requested relief via a WIA waiver from the Department
of Labor on the amount of matching fund required of employers for WIA customized
training projects that are funded with an individual Board's own allocation.
The Commission does, however, believe a stronger relationship between applicants
for Self-Sufficiency Fund grants and the Boards is critical to the success
of these projects. The new rules seek closer alignment of all the interested
parties.
Comment: Regarding §835.11(4) and §835.11(5), one commenter felt
that the word "collaboration" should be defined in these two program objectives.
The commenter believed that if left undefined, the current practice of requesting
a support letter from the Board after the project has been written will remain
in place and does little to further the objectives of assisting Boards in
meeting Choices participation rates.
Response: The Commission disagrees with the commenter's suggestion of defining
collaboration as used in §835.11(4) and §835.11(5). Under §835.14,
potential grant recipients are required to obtain review and comment from
the Board before the proposal is sent to the Agency. The Commission strongly
urges early collaboration of employers, education organizations and the Boards
in the design and planning of training projects, and expects these local partners
to forge relationships as part of their goal in meeting the workforce and
economic development needs of the workforce area. The Commission disagrees
with the commenter in imposing requirements under rule to force local partners
to collaborate.
Comment: Regarding §835.13(4), one commenter felt that all program
projects should operate at a 10% administrative cost cap rather than allowing
multiple employer projects to have a 15% administrative cost cap. The commenter
felt that a 10% administrative cost cap is sufficient for projects done in
concert with the Board. The commenter also felt that the Commission could
waive the rules if administrative costs were greater than 10%.
Response: Although the Commission agrees with the commenter that single
employer grants should be capped at 10%, it disagrees with the commenter's
suggestion that all grants should be capped at 10%. The 15% administrative
cost cap encourages employers to team together or join a business consortium
that in turn could train more employees per capita and address more skills
at an overall less administrative cost per student. It also encourages employers
to communicate and work together to identify needed skills for a workforce
area. Furthermore, the increased cap for multiple employer or consortium grants
drives potential grant recipients to pursue such collaborations and gives
the Commission the flexibility to appropriately fund the administrative costs
of the grant recipient. Because the rule merely sets a discretionary maximum
limitation on administrative costs, the Commission may also, at its discretion,
set administrative costs below the cap in the rule.
Comment: Regarding §835.14(c)(3), one commenter felt that training
under a Self-Sufficiency Fund grant should focus on occupations that facilitate
the growth of industry and foster the economic growth of the region, but believed
the training should only focus on targeted occupations set by the Boards to
ensure new hires and current workers self-sufficient wages that include benefits.
Response: The Commission recognizes the commenter's suggestion that training
projects should lead to the greatest economic benefit to the public in the
form of enhanced worker skills and positive economic impact, which in turn
facilitates growth of industry and fosters economic growth of a region. This
objective is currently a part of the Self-Sufficiency Fund program objectives
listed under §835.11. However, the Commission disagrees with the commenter's
suggestion that training projects should be limited exclusively to training
for jobs that lead to employment in a targeted occupation listed by the Board.
The rule gives the Commission the flexibility to assist and encourage employers
to participate in employment initiatives, such as those promoted by the U.S.
Department of Labor and the Governor's Office, which may not involve targeted
occupations. The Commission also retains flexibility in choosing training
projects that will best serve Choices clients and employers. However, in working
with its local partners, the Board is free to support or not support proposals
based on whether proposals address the local workforce development goals or
needs.
Comment: Regarding §835.15, one commenter stated that additional language
should be added under this rule to include a statement in the application
describing collaboration with the Board.
Response: The Commission disagrees with commenter's suggestion of requiring
potential grant recipients to describe Board collaboration in the grant application.
Under the rules, potential grant recipients are required to obtain review
and comment from the Board before the proposal is sent to the Agency, and
if the Board provides written comments, such comments should be included in
the application. The Commission strongly urges early collaboration of employers,
education organizations and the Boards in the design and planning of a training
project. The Commission disagrees with imposing requirements under rule to
force local partners into working relationships. The local partners must foster
productive relationships as part of their goal in meeting local workforce
and economic development goals and needs.
Comment: Regarding §835.32, one commenter suggested that grant recipients
provide to the Board copies of reports that are to be provided to the Agency.
Response: The employers, educational organizations, and the Board must
foster productive relationships as part of their goal in meeting local workforce
and economic development goals and needs, and the Commission expects these
local partners to communicate with each other about the progress of Self-Sufficiency
Fund training. However, the Commission disagrees with the commenter's suggestion
of providing the Board copies of reports the grant recipient is required to
provide to the Agency. Self-Sufficiency Fund grant contracts are between grant
recipients and the Agency, and because the Board is not a party to the contract,
the Commission is concerned about confidential information contained in the
reports that is required to remain confidential based on federal and state
laws. However, in an effort to keep the Board apprised of Self-Sufficiency
Fund training, the Commission may make a progress report available to the
Board at the Board's request.
Subchapter A. GENERAL PROVISIONS REGARDING THE SELF-SUFFICIENCY FUND
40 TAC §§835.1 - 835.4
The rules are repealed under Texas Labor Code §301.061
and §302.002, which provide the Texas Workforce Commission with the authority
to adopt, amend, or repeal such rules as it deems necessary for the effective
administration of Agency services and activities.
The repeal affects Texas Labor Code, Titles 4 as well as Texas Government
Code, Chapter 2308.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on December 18, 2002.
TRD-200208390
John Moore
Assistant General Counsel
Texas Workforce Commission
Effective date: January 7, 2003
Proposal publication date: September 13, 2002
For further information, please call: (512) 463-2573
40 TAC §§835.1 - 835.4
The new rules are adopted under Texas Labor Code §301.061
and §302.002, which provide the Texas Workforce Commission with the authority
to adopt, amend, or repeal such rules as it deems necessary for the effective
administration of Agency services and activities.
The rules affect Texas Labor Code, Titles 4 as well as Texas Government
Code, Chapter 2308.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on December 18, 2002.
TRD-200208395
John Moore
Assistant General Counsel
Texas Workforce Commission
Effective date: January 7, 2003
Proposal publication date: September 13, 2002
For further information, please call: (512) 463-2573
40 TAC §§835.11 - 835.15
The rules are repealed under Texas Labor Code §301.061
and §302.002, which provide the Texas Workforce Commission with the authority
to adopt, amend, or repeal such rules as it deems necessary for the effective
administration of Agency services and activities.
The repeal affects Texas Labor Code, Titles 4 as well as Texas Government
Code, Chapter 2308.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on December 18, 2002.
TRD-200208391
John Moore
Assistant General Counsel
Texas Workforce Commission
Effective date: January 7, 2003
Proposal publication date: September 13, 2002
For further information, please call: (512) 463-2573
40 TAC §§835.11 - 835.15
The new rules are adopted under Texas Labor Code §301.061
and §302.002, which provide the Texas Workforce Commission with the authority
to adopt, amend, or repeal such rules as it deems necessary for the effective
administration of Agency services and activities.
The rules affect Texas Labor Code, Titles 4 as well as Texas Government
Code, Chapter 2308.
§835.15.Procedure for Evaluation.
(a)
The Director's, or his or her designee's, evaluation of
each proposal shall include consideration of the:
(1)
information contained in the written proposal;
(2)
project objectives and outcome measures as referenced in §835.11
of this subchapter;
(3)
prior experience and performance in the provision of direct
training and education by the entity providing training and education services;
and
(4)
verification of good standing for any required certification,
license, or registration for training providers.
(b)
Priority shall be given to proposals which utilize all
available resources, including private contributions as well as local, state
and federal funds.
(c)
The Agency will notify the Board in the applicable local
workforce development area(s) when the Agency is evaluating a proposal so
as to inform the Board of potential workforce activities in the workforce
area(s).
(d)
If the Agency determines that a proposal is appropriate
for funding through the Self-Sufficiency Fund and funding is available, the
Director, or his or her designee, may enter into a contract with the grant
recipient.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on December 18, 2002.
TRD-200208392
John Moore
Assistant General Counsel
Texas Workforce Commission
Effective date: January 7, 2003
Proposal publication date: September 13, 2002
For further information, please call: (512) 463-2573
Subchapter B. PROJECT ADMINISTRATION
Subchapter C. PROJECT ADMINISTRATION AFTER AWARD OF CONTRACT