1. (a) Purpose of Rule.

   1. (1) Upon application by the chief elected officials (CEOs) and approval of the Commission, the Commission will forward an application to form a local workforce development board (Board) to the Governor.
   2. (2) Before an application may be submitted to the Governor, all requirements of this section must be met.
2. (b) State Law. The formation of Boards is governed by the Workforce and Economic Competitiveness Act, Texas Government Code, Chapter 2308.
3. (c) Chief Elected Official Agreement. Creation of a Board requires agreement by at least three-fourths of the CEOs in the workforce area who represent units of general local government, including all of the CEOs who represent units of general local government having populations of at least 200,000. The elected officials agreeing to the creation of the Board must represent at least 75% of the population of the workforce area.

4. (d) Chief Elected Officials. The CEOs may, and are encouraged to, consult with local officials other than the ones delineated below. The following officials are designated as the CEOs for the purpose of establishing agreements to form Boards:

   1. (1) Mayors.

      1. (A) The mayor of each city with a population of at least 100,000;
      2. (B) or, if there is no city with a population of greater than 100,000, the mayor of each city with a population greater than 50,000;
      3. (C) or, if there are no cities with a population of greater than 50,000, the mayor of the largest city in the workforce area.
      4. (D) For purposes of this section, municipal population will be determined by the figure last reported by the Texas State Data Center at the time of submission of the application to the Commission.
   2. (2) All county judges included in a workforce area as designated by the Governor.
5. (e) Time of Application. CEOs in an area may not establish a Board until the Governor has designated that area as a workforce area as provided in the Workforce and Economic Competitiveness Act, Texas Government Code, Chapter 2308.
6. (f) Applications must meet all Governor-approved criteria for the establishment of Boards.

7. (g) Procedures for Formation of a Board. The CEOs must comply with the following procedures to form a Board.

   1. (1) Public process procedure. If three-fourths of the CEOs, as defined in subsection (d) of this section, agree to initiate procedures to establish a Board, they must conduct a public process, including at least one public meeting, to consider the views of all affected organizations before making a final decision to form a Board. This public process may include, but is not limited to, notices published in various media and surveys for public comment.

   2. (2) Application procedure.

      1. (A) The CEOs must submit an application to the Commission. This application must include evidence of the actions required by paragraph (1) of this subsection. As a part of the application, each of the CEOs, who is in agreement regarding the formation of a Board, must execute the following documents:

         1. (i) an interlocal agreement delineating:

            1. (I) the purpose of the agreement;
            2. (II) the process that will be used to select the CEO who will act on behalf of the other CEOs and the name of such CEO if the person has been selected;
            3. (III) the procedure that will be followed to keep those CEOs informed regarding local workforce development activities;
            4. (IV) the initial size of the Board;
            5. (V) how resources allocated to the workforce area will be shared among the parties to the agreement;
            6. (VI) the process to be used to appoint the Board members, which must be consistent with applicable federal and state laws; and
            7. (VII) the terms of office of the members of the Board.

         2. (ii) an acknowledgment in the following form: We, the chief elected officials of the _______________ Workforce Development Area, acknowledge that the following are responsibilities and requirements pursuant to the formation of local workforce development boards (Boards):

            1. (I) The Board will assume the responsibilities for the following committees and councils that will be replaced by the Board unless otherwise provided in Texas Government Code, Chapter 2308: private industry council, quality workforce planning committee, job service employer committee, and local general vocational program advisory committee.
            2. (II) At least one career development center must be established within 180 days of Board certification;
            3. (III) The Board must have its own independent staff and not be a provider of workforce services, unless the Board secures a waiver of these provisions;
            4. (IV) The chief elected officials must enter into a partnership agreement with the Board to designate a grant recipient to receive and be accountable for block grant funds, and be liable for any misuse of funds;
            5. (V) The partnership agreement must also specify the entity that will administer the programs, which may be separate from the entity that receives the funds from the state;
            6. (VI) The partnership agreement must define the process through which the Boards and chief elected officials will develop the strategic and operational plans, including the training plan required under the Workforce Investment Act, required by the legislation in order to receive block grant funds; and
            7. (VII) The strategic plan must be reviewed by both the Commission and the Texas Council on Workforce and Economic Competitiveness, and approved by the Governor before block grants will be available to the workforce area.
      2. (B) The application must include evidence that any affected existing Board has been notified and agrees that its functions and responsibilities will be assumed by the proposed Board upon the proposed Board's final certification by the Governor.

      3. (C) The application shall include the names and affiliations of individuals recommended for Board membership, with documentation that CEOs followed the nomination process specified in applicable state and federal law, including Texas Government Code, §2308.255 and §2308.256.

         1. (i) Private sector members shall be owners of business concerns, chief executives, chief operating officers of nongovernmental employers, or other private sector executives who have substantial management or policy responsibility. To be eligible to represent the private sector, at least 51% of an individual's annual income must be from private sector sources.
         2. (ii) Private sector membership should represent the composition of the local pool of employers. The private sector membership should include representatives of the region's larger employers and emerging growth industries. Primary consideration should be given to private sector employers who do not directly provide employment and workforce training services to the general public. CEOs must develop a profile of the area's major industries using locally obtained information and state published data. The Commission will provide relevant labor market information, including data which identify employment trends, emerging and growth industries, the size of local employers, and other data needed to assist CEOs in developing the employer profile. Documentation submitted with the application must show how the regional employer profile is reflected in the Board membership.
         3. (iii) Board membership must include representatives of local organized labor organizations, community-based organizations, educational agencies, vocational rehabilitation agencies, public assistance agencies, economic development agencies, the public employment service, local literacy councils, and adult basic and continuing education organizations as required by law.
         4. (iv) Representatives of local organized labor organizations shall be nominated by local labor federations unless no employees in the workforce area are represented by such organizations, in which case nominations may be made by other representatives of employees. A labor federation is defined as an alliance of two or more organized labor unions for the purpose of mutual support and action.
         5. (v) Board nominees shall be actively engaged in the organization, enterprise or field which they are nominated to represent. A Board nominee shall have an existing relationship with the workforce area through residence or employment within the workforce area.
         6. (vi) At least one of the members of a Board appointed under Texas Government Code §2308.256(a) must, in addition to the qualifications required for the members under that subsection, have expertise in child care or early childhood education.
      4. (D) No individual member shall be a representative of more than one sector or category described in this section, except as statutorily permitted for one or more members having expertise in child care or early childhood education in addition to meeting one of the other sector or categories of representation.
      5. (E) The application must include documentary evidence substantiating compliance with the application procedure, including but not limited to, written agreements, minutes of public meetings, copies of correspondence, and such other documentation as may be appropriate.

Source Note:The provisions of this §801.1 adopted to be effective January 31, 1996, 21 TexReg 520; amended to be effective November 2, 2000, 25 TexReg 10756.