1. (a) The Commission may determine the amount of funds for use to reward performance annually.
2. (b) Incentive awards for performance may be given in each classification and the Commission may give more than one award in each classification.

3. (c) The Commission may use any combination of existing state or federal performance measures and may develop its own measures to evaluate performance.

   1. (1) If the Commission includes a measure that does not already have a target, the Commission may:

      1. (A) set an incentive target for the sole purpose of evaluating eligible Boards for the incentive awards (failure to meet an incentive target does not subject the Board to sanction);
      2. (B) rate performance based on each Board's "relative improvement" in performance from the prior year; or
      3. (C) compare exhibited performance among the Boards in a classification if the measure allows comparability across Boards of different sizes. (For example, the "percent of job orders timely posted" allows performance to be measured across Boards of different sizes, but the "number of job orders timely posted" does not.)
   2. (2) The Commission may use a measure and a subset of a measure in the same year. For example, the Commission could include one measure that considers employers with job postings in the job matching system and another measure that considers employers with job postings in targeted occupations.

4. (d) If the Commission is considering issuing awards under this section, the Commission shall notify Boards of the method by which performance shall be evaluated for the purpose of giving awards under this rule for that year.

   1. (1) The notice required under this subsection shall be provided to the Boards concurrent with their yearly contracts.

   2. (2) The notice may include:

      1. (A) a listing of the Boards assigned to each classification;
      2. (B) a listing of awards;

      3. (C) a listing of the performance measures to be included in each evaluation category including:

         1. (i) the period of evaluation for each performance measure; and
         2. (ii) the method of evaluation for each performance measure;
      4. (D) the weightings to be used to aggregate the performance measures to allow each Board's overall performance to be ranked and also encourage an emphasis on employer-focused measures;
      5. (E) the anticipated amount of funds available to be awarded; and
      6. (F) other criteria to be used to identify superior performance.

5. (e) The Commission shall rank a Board's performance for each performance measure as follows.

   1. (1) For measures that have performance targets, the Commission shall determine each Board's "success rate" by dividing the Board's actual performance by its target for the measure.
   2. (2) For measures that have no performance targets, the Commission shall determine each Board's actual performance (or change in performance if that was the method identified as the method for evaluation) and call this the "performance rate."
   3. (3) For each measure, the Commission shall replace the "success rate" or the "performance rate" with a ranking. The Board with the "best" ranking in its classification shall be ranked "1," the second best ranked "2," etc. If two Boards in a classification are tied for a position, such as second place, both shall be ranked "2" and the Board with the next "best" ranking shall be ranked "4."

6. (f) The Commission shall assign each Board a final rank as follows.

   1. (1) The Commission shall use the weightings identified in subsection (d)(2)(D) of this section to determine the weighted rank of the performance rankings assigned under subsection (e) of this section.
   2. (2) Each Board's weighted rank shall be converted to an overall ranking within the Board's classification. That is, the Board with the lowest weighted rank in a classification is ranked "1," the second lowest ranked "2," etc. If two Boards are tied for a position such as second place, both shall be ranked "2" and the next "best" Board will be ranked "4."
7. (g) The award for each classification shall be given to the Board in the classification with the best overall ranking. If the Commission is assigning more than one award in a classification, the Boards with the highest rankings shall receive the award.
8. (h) Boards that receive a performance award shall use the incentive award to carry out workforce activities as allowed by state and federal laws.
9. (i) The Commission may modify the assignment of awards based on factors that the Commission identifies as extraordinary circumstances.

Source Note:The provisions of this §802.166 adopted to be effective February 7, 2011, 36 TexReg 604.