The Texas Council on Workforce and Economic Competitiveness adopts new §901.1, concerning procedures for considering redesignation of workforce development areas, with changes to the proposed text as published in the November 5, 1999, issue of the Texas Register (24 TexReg 9818) and new §901.2, concerning appeal of decision on designation or redesignation, with changes to the proposed text as published in the November 5, 1999, issue of the Texas Register (24 TexReg 9818).

New §901.1 is adopted to establish a procedure for the Council to employ as it recommends to the Governor the designation or redesignation of workforce development areas for the local planning and delivery of workforce development. The new rule specifies who may initiate the redesignation process, the requirements for a request initiated by a local area or proposed local area, the notices to be given upon receipt of a proposal including publication in the Texas Register, consideration of a proposal or request for redesignation by the Council, and a recommendation by the Council to the Governor on the proposal or request.

New §901.2 is adopted to establish a procedure for making an appeal of a decision to designate or redesignate a workforce development area. The new rules sets a time limit for filing an appeal, specifies the contents of an appeal, requires notice of an appeal to be published in the Texas Register, provides for consideration of the appeal by the Council, and establishes a timeframe in which the Council must make a recommendation to the Governor on the appeal.

As required by the Texas Government Code, §2001.033(1), the Council's reasoned justification for the new rules are set out in this order which includes the preamble, which in turn includes the rule. This preamble contains a summary of the factual basis for the rules. No comments were received on either rule.

Changes made to the rules as proposed were made based upon further review by the staff to clarify roles, ensure necessary information was submitted with requests for redesignation, and set a timeframe in which the Council must respond to an appeal of a decision regarding designation or redesignation of a workforce area. The changes are described more specifically below.

Adopted New §901.1.

The new section is proposed under the Texas Government Code, §2308.101(3) which requires the Council to recommend to the Governor the designation and redesignation of local workforce development areas. Prior to the adoption of this rule, Texas exercised its option to designate existing local workforce development areas as local workforce development areas for the purposes of the Workforce Investment Act. The adoption of this rule does not require previously designated local workforce development areas to submit a new request in order to maintain the current designation. This rule merely establishes a formal process under which applications for redesignation shall be submitted and considered.

New §901.1(a) defines the term "chief elected officials" to mean the officials designated by state law as the chief elected officials for the purposes of establishing agreements to form local workforce development boards.

New §901.1(b) allows the Council to submit a written proposal or a local area or proposed area to submit a written request to initiate the process to consider redesignation of workforce development areas.

New §901.1(c) sets out the requirements for a written request for redesignation submitted by a local area or proposed local area. The request must be signed by the chief elected officials in the proposed new area whose signature would be required to create a local workforce development board if the request was granted. One of those chief elected officials must also be designated as the lead official. The director of the Council will notify the lead official and the Governor of receipt of the request as well as any deficiencies in the request. The lead official has 30 days to correct any deficiencies. The written request must show that each proposed area complies with state requirements for a local workforce development area and include specific information about geographic areas served by local and intermediate educational agencies, post secondary educational institutions, and vocational education schools; the extent to which such local areas are consistent with labor market areas; the distance individuals will need to travel to receive services; the resources available to effectively administer the activities carried out under state and federal law; the total population of the proposed area; any prior designation of the area as a JTPA service delivery area or service as a rural concentrated employment program; and other information requested by the Council. If a proposed area is identified in the request as a local labor market area, the request must also contain sufficient evidence that each such area is an economically integrated geographic area within which people may reside and find employment within a reasonable distance. If one or more existing areas is to be further divided, the request must contain a description of how services of all programs under the local board's purview will be coordinated with other local boards and workforce development areas within the region, documentation that justifies designation of an area that has less than 200,000 population if applicable, and an analysis of costs associated with dividing the region with an emphasis on administrative costs.

New §901.1(d) requires the director to notify all current workforce development board members of affected areas if a proposal or request is made to split a designated area into two or more areas.

New §901.1(e) requires notice of a proposal or request to redesignate workforce development areas to be published in the Texas Register with a statement inviting input, specifying the deadline for submitting written input, and setting an open meeting at which oral comments will be accepted.

New §901.1(f) requires the Council to consider a proposal or request or to designate a committee to do so and to make a report to the Council. In considering the proposal or request, all relevant information may be reviewed in addition to the information submitted with the proposal or request and the information obtained during the public comment process.

New §901.1(g) requires the Council to make a recommendation to the Governor after considering a proposal or request.

No public comments were received on this rule. However, two amendments to the rule were made based on staff recommendations. The first amendment deleted the reference to the Governor in subsection (b) to clarify that only the Council could propose or a local area or proposed local area could request initiation of the redesignation process. The second amendment added clauses (vi) through (viii) to subsection (c)(3)(A). These three clauses track language from the Workforce Investment Act which set out the qualifications required to qualify for an automatic designation.

Adopted new §901.2.

The new section is proposed under the Texas Government Code, §2308.101(3) which requires the Council to recommend to the Governor the designation and redesignation of local workforce development areas.

New §901.2(a) requires an appeal of a designation or redesignation of a workforce area to be delivered to the Council no later than 30 days after the date the designation or redesignation decision was made.

New §901.2(b) requires an appeal to be in writing and include the specific reasons for appealing the designation or redesignation. The request is also required to include any new information the requestor seeks to have considered in the appeal process.

New §901.2(c) requires a notice of the appeal to be published in the Texas Register with a statement inviting input and specifying the deadline for submitting written input. The Council also has the discretion to schedule a public meeting at which public comments will be accepted.

New §901.2(d) allows the Council to consider an appeal or to designate a committee to do so and to make a report to the Council. All relevant information may be considered in connection with an appeal in addition to the information submitted with the appeal and the information obtained during the public comment process.

New §901.2(e) requires the Council to make a recommendation on the appeal to the Governor within 120 days of receiving the appeal request.

No public comments were received on this rule. However, one amendment to subsection (e) of the rule was made based on a staff recommendation. The amendment added the 120 day time limit on making a recommendation to the Governor.

The public benefits anticipated as a result of enforcing the rules include the following:

Workforce development system partners will benefit from an unambiguous process, defined by the rules, that will provide an efficient and consistent application of requirements for the designation or redesignation of local workforce development areas as well as the appeal of such a decision.

Chief elected officials will clearly understand the requirements for requesting the designation or redesignation of a local workforce development area. CEO's will benefit from the streamlined process defined in the rules, and in the event that an appeal is necessary, will know the requirements that must be met to file an appeal. This provides an opportunity for increased efficiency, better usage of resources, and more effective communication processes.

The new sections are adopted under the Texas Government Code, §2308.101(3) which requires the Council to recommend to the Governor the designation and redesignation of local workforce development areas and §2308.103(a)(1) which authorizes the Council to adopt rules.