1. (a) Purpose of Rule.

   1. (1) Upon application by the chief elected officials (CEOs) and approval of the Texas Workforce Commission, (Commission) the Commission will forward an application to form a local workforce development 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 and Federal Law. The formation of local workforce development boards is governed by the following federal statutes and regulations and state statutes:

   1. (1) The Job Training Partnership Act, as amended, 29 United States Code §§1501, et seq;
   2. (2) 20 Code of Federal Regulations, Part 628; and
   3. (3) The Workforce and Economic Competitiveness Act, Chapter 2308, Government Code, Texas Civil Statutes, as amended.
3. (c) Chief Elected Official Agreement. Creation of a board requires agreement by at least three-fourths of the CEOs in the workforce development 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 development 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 local workforce development 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 development 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 development area as designated by the Governor.
5. (e) Time of Application. CEOs in an area may not establish a local board until the Governor has designated that area as a local workforce development area as provided in the Workforce and Economic Competitiveness Act, Chapter 2308, Government Code, Texas Civil Statutes, as amended.
6. (f) Applications must meet all Governor-approved criteria for the establishment of local workforce development boards.

7. (g) Procedures for Formation of a Local Workforce Development Board. The CEOs must comply with the following procedures to form a local workforce development 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 local workforce development 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 local workforce development 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 local workforce development 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 local workforce development board;
            5. (V) how resources allocated to the local workforce development 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:

            1. (I) The local workforce development board will assume the responsibilities for the following committees and councils that will be replaced by the board unless otherwise provided in Chapter 2308, Government Code, V.T.C.A., as amended: 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 local boards and chief elected officials will develop the strategic and operational plans, including the training plan required under the Job Training Partnership 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 Council on Workforce and Economic Competitiveness, and approved by the Governor before block grants will be available to the local area.
      2. (B) The application must include evidence that any affected private industry council has been notified and agrees that its functions and responsibilities as a private industry council pursuant to the terms of the Job Training Partnership Act will be assumed by the proposed local workforce development board upon the 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 Government Code, Texas Civil Statutes, §2308.255 and §2308.256, and the Job Training Partnership Act.

         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. No more than 10% of the board membership should be composed of private sector representatives who employ fewer than five employees.
         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. (D) 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.
      5. (E) CEOs who have submitted applications to the Texas Council on Workforce and Economic Competitiveness may supplement those applications with documentation of any actions necessary to meet the provisions in these rules.
      6. (F) Boards formed on the basis of completed applications on which the Texas Council on Workforce and Economic Competitiveness took formal action prior to September 1, 1995, must be brought into compliance under the rules adopted by the Texas Workforce Commission no later than July 1, 1997.

Source Note:The provisions of this §801.1 adopted to be effective January 31, 1996, 21 TexReg 520.